Jad Dellel on Compliance, Digital Transformation, and Integration
In a deep and insightful interview, Jad Dellel, Senior Sustainability Manager at Exclusive Networks, sheds light on the increasingly significant role of regulatory compliance in shaping business practices. With a background in mathematics and civil engineering, he has seen firsthand the environmental impact of construction projects, from waste generation to CO2 emissions. His passion for sustainability led him to work with Autodesk, where he engaged with thousands of customers and spearheaded sustainability initiatives globally. Now leading sustainability efforts at a new company, Exclusive Networks, Jad focuses on compliance with European regulations such as the CSRD and GRI, while addressing the broader challenges faced by businesses in their sustainability journeys.
The Importance and Impact of Regulations
Q: Given your experience with the CSRD and similar regulations, how do these frameworks affect organizational sustainability practices? And how do you assess the impact of compliance on the broader business landscape?
Jad: "The CSRD is a great practice because it allows us to review our strategy and take what is really important to the regulation and move forward. However, the challenge for many companies not already on the sustainability journey is significant. The investment from the auditing perspective, solutions perspective, and project management perspective can be substantial. This burden is particularly heavy for smaller companies that may see compliance as an additional distraction from their core business activities. For example, a small company with ten employees needing to comply by 2027 would see it as a burden due to the extensive work required, such as auditing, double materiality, gap analysis, and hiring new staff. It’s a lot of work that adds additional pressure and takes away focus from their primary competitive business."
The challenge Jad highlights is supported by research indicating that compliance costs for small and medium enterprises (SMEs) can be disproportionately high. While European companies face the impending enforcement of regulations like the Corporate Sustainability Reporting Directive (CSRD), A 2021 study by the European Commission found that regulatory compliance costs for SMEs can be up to ten times higher per employee compared to larger firms. However, there are specific sustainability software solutions available that can help streamline these processes and alleviate the burden on smaller companies, underscoring the necessity for intelligent and automated sustainability reporting tools.
Digital Transformation and Cybersecurity
Q: What role does digital transformation play in achieving sustainability goals?
Jad: "Digital transformation is crucial for achieving our sustainability goals. Without digitization, it’s nearly impossible to streamline data processes, ensure accurate data collection, and enable efficient reporting. However, this transformation also brings cybersecurity challenges. A robust cybersecurity strategy is essential to protect data integrity and avoid threats that could derail sustainability efforts. For instance, to measure carbon emissions effectively, you need sensors, technology to track real-time data, and dashboards to monitor improvements. If cybersecurity threats compromise this data, it hinders the ability to meet sustainability targets. Therefore, cybersecurity must be integrated into the digital strategy to secure and enhance sustainability initiatives."
According to a 2022 report by Gartner, businesses that leverage digital transformation effectively can reduce operational costs by up to 30% and enhance data accuracy by 25%. Moreover, the World Economic Forum's Global Risks Report 2023 highlights both climate change and cybersecurity as top risks, underscoring Jad's point about the necessity of integrating robust cybersecurity measures into sustainability efforts.
Jad Dellel: Sustainability for Busy People
Integrating Sustainability into Core Business Activities
Q: Can you elaborate on how companies can effectively integrate sustainability into their businesses?
Jad: "For sustainability to be impactful, it must be integrated into the core business activities. This means that instead of seeing sustainability as a separate CSR activity, companies need to bridge it with their main operations. For example, in our strategy, we link sustainability with our core business of cybersecurity, making it relevant and driving business value. This approach ensures that sustainability initiatives are not just about compliance but are embedded in the business's operations, contributing to both environmental goals and business success. It's about creating a sustainable business model where sustainability efforts directly support and enhance the company's primary activities."
Moreover, integrating sustainability into core business operations can greatly enhance a company's market value. A 2021 study by McKinsey found that companies with strong ESG (Environmental, Social, and Governance) practices outperformed their peers by 21% in stock performance. Furthermore, sustainable business solutions that align with a company's main operations can drive innovation and customer engagement, as highlighted by Jad.
Conclusion
Jad Dellel's insights offer practical advice for sustainability managers dealing with regulatory compliance, digital transformation, and integrating sustainability into core business operations. His emphasis on the importance of regulations like the CSRD, the role of digital transformation and cybersecurity, and the necessity of embedding sustainability into core business activities, offers valuable guidance for achieving corporate sustainability. By leveraging intelligent sustainability tools like Footprint Intelligence, companies can not only meet regulatory requirements but also drive innovation and create lasting value in their sustainability journeys.
The views and opinions expressed in this blog are solely those of the author and do not reflect the official policy or position of any company.
