Corporate governance is central to any organisation’s sustainability aspirations, directly setting the approach and extent through which ESG principles become embedded in operations.
Despite the public-facing nature of organisations that host and facilitate spectator-oriented sporting events, sustainability is rarely in the same weight class as other indicators of success. With the size of the prize and the weight of eyes interacting with sporting mega-events today, organisations and countries alike must take hold of their sustainable futures.
Fortunately, a growing array of technologies to secure sustainability are waiting on the sidelines, ready to have an instant impact.
Sporting events governance under green scrutiny
Given the reputational costs of highly-publicised failings and controversy, from corruption and systematic doping to over-budget spending and abandoned legacy venues, leading by a bad example has never been more public. Sport’s claims of carbon neutrality, climate positivity, and other implicitly positive ESG jargon are often swiftly abandoned under closer scrutiny.
The 2024 Paris Olympics had to step back from 2021 plans of being the first Games with a ‘positive contribution’ to the climate, while both Euro 2024 in Germany and World Cup 2022 in Qatar failed to sidestep their false claims of carbon neutrality.
Corporate governance is often the most overlooked pillar of ESG, but is responsible for the execution of sustainability globally. Planning and enacting ESG strategies are crucial for companies to help enhance reputation and brand value, attracting investors, employees, and customers alike. To avoid international embarrassment and mitigate against the growing portfolio of ESG-related risks, sustainability must begin with corporate governance.
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By GlobalDataMessage in a bottle at the Paris Olympics
The juxtaposition of events’ publicising good performance in aspects of the circular economy, like resource re-purposing and life cycle extensions, with embarrassing failures in single-use resources and overconsumption emphasises the need for strong leadership with an entrenched ESG identity.
Saying one thing and doing another results in negative consequences for all, especially in sustainability. While the Paris Olympics promoted itself as the most eco-friendly Olympics ever, Coke, the only company supplying drinks at the Games, filled ‘eco-cups’ directly from plastic bottles, doubling plastic use unnecessarily. These kinds of failures undermine the credibility of any organisation’s sustainability claims going forward.
Despite failing at the line of sustainability, technology can help embed principles of sustainability and the circular economy to facilitate a greener Olympics going forward. Resource wastage is an increasingly important factor for hosts and potential hosts alike, as questions arise surrounding inefficiency in the logistics of the Games.
Governance wins smart with renewable energy
The 2024 Olympics ran on entirely renewable energy, with the few generators used running on biofuel, H2, or batteries. Smart grids and energy management systems are in use, alongside solar panels and rainwater harvesting systems in stadiums to reduce energy use overall and increase renewable sources.
To try to achieve similar reductions, Euro 2024 used adapted match schedules and smart mobility solutions, alongside creating a climate fund, to offset its emissions.
Green wants and “won’ts”
As the perception of the value gained from global sporting events is increasingly scrutinised, especially from the perspective of potential hosts, there has never been a better time to holistically entrench sustainability and demonstrate best practice.
Underhand workarounds that hurdle ESG agendas cannot be allowed near any potential podium globally. The ready availability of solutions that improve companies’ commercial and sustainable performance means the baton is firmly in the hands of corporate governance to holistically entrench sustainability, through technology or otherwise.
Whether and the extent to which companies’ executives truly act on and set the pace of sustainability remains to be seen, but spectators around the world will continue to hold their breaths.
