Commonwealth Banks Sustainability Practices for Climatic Issues

Question: Discuss about theCommonwealth Banks Sustainability Practices for Climatic Issues. Answer: Introduction Commonwealth Bank engages itself in a number of sustainable practices. One of the sustainable practices that Commonwealth Bank has involved itself into is tackling of climatic change. Since 2001, Commonwealth Bank has had a Group Environmental Policy which has been continuously modified and updated to accommodate international efforts in order to limit global warming to a maximum of 2 degrees Celsius. On the same note, the modification has been made to enable transition to low carbon and renewable models from traditional economic models[1]. The new policy, which is basically a modified initial policy, outlines the commitment of commonwealth Bank to support incorporation of low carbon economy. Besides involvement in climatic issues, the bank has continuously worked towards ensuring a healthy culture in the group is created. The group works to create a culture of team-work and collaboration which encourages individual members efforts are acknowledged and challenged for future improveme nt; so that an individual working in a team can be proud working for the group. Other practices include proper waste management and water utilization[2]. Value of Sustainability Practices The value of sustainability practices is mainly indirect and can be viewed when approached analytically. Besides the indirect nature of the benefits, sustainability practices of Commonwealth Bank has great value to both the industry and all the stakeholders. Commonwealth Bank, just like any other player in the banking industry, relies on the vitality of the economy at large. Thus the interdependence nature of the banks performance and its clients well-being makes sustainable practices to provide economic development. For instance, through practices that are geared towards environmental preservation, such proper waste management and environmental conservation, business environment becomes more conducive which provides higher probability of economic vitality[3]. Additionally, some of the banks customers depend on raw materials whose availability depend on the conducive environment to be productive. These include the presence water which is needed for most of the factories activities. I n brevity, for example, for a firm relying on a factory (factory using water in its production process) has to locate a niche in the market to seek funding by the bank. For this factory to perform well and continuously produce what it does, then the environment has to be conducive enough so that water sources do not run dry. When all these factors are on the positive side due, the economic performance is improved. This economic vitality is enjoyed by all stakeholders including the immediate community[4]. Besides economic improvement, Commonwealth Banks sustainable practices creates better social relationship between the bank and its customers. As Commonwealth Bank participates in other matters affecting its customers and the community at large, its image to people is improved and confirmed as a socially responsible firm. Improved image encourages customers to bank with them and buy their facilities. Besides, other partners whose interests are taken care of by these sustainable practices partner with the ban hence improving its social-ties circle. This kind of partners may include Centre for Social Impact (CSI), Red Cross and The Great Barrier Reef Foundation[5]. In the long run, in the process of creating a mutual and conducive environment, the bank and stakeholder benefit socially and economically. Last but not least, another value benefitted by sustainable practices is environmental protection. Most of the banks sustainable practices including proper water utilization and reduction of carbon emitted in the atmosphere protects the environment hence ensuring that the earth is a habitable environment[6]. This improves the quality of life earth by ensuring water is available for people to use, the air we breathe is clean and vegetation growth is preserved so that ecosystem functioning is sustained. Thus ultimate result being environmental conservation that is enjoyed by the entire society; especially those within the banks proximity. Quantification of the Value of Sustainability Practices The most probable question that arise is how well one can quantify the value of this sustainable practices. There has been debate with contradicting and opposing views being given on value of sustainable practices and measurement of the same. However, the value of sustainable environment can be measured easily despite the fact that there are some difficulties facing the measurement. The value of sustainability practices can be measured by looking at the specific parameters performance being tackled. For instance, if the practice is directed towards improvement of the employees culture, then we can look at the how the culture of the firm is over a period of time. This can be given in comparable scale. Besides, benefits that relate to the performance of the bank can measured by looking at customers base before and after engagement into the practice. Additionally, the kind of feedback given by the stakeholders can help in the measurement of the value of sustainability practices, among others. Bibliography Common Bank of Australia. (2015, November 5). COMMONWEALTH BANK IMPLEMENTS SUSTAINABILITY POLICIES AND PRACTICES. Retrieved from Commonwealth Bank of Australia: https://www.commbank.com.au/about-us/news/media-releases/2015/commonwealth-bank-implements-sustainability-policies-and-practices.html Commonwealth Bank(AU). (2017, May). Social and environmental support. Retrieved from Commonwealth Bank(AU): https://www.commbank.com.au/about-us/sustainability-and-community/community/partnerships/social-environmental-support.html Environmental Science. (2017, May). What Is Sustainability and Why Is It Important? . Retrieved from Environmental Science: https://www.environmentalscience.org/sustainability