Commitment to Sustainability Going Strong

Despite the economic downturn and tenuous recovery, more than two-thirds of businesses are strengthening their commitment to sustainability, according to a global study by MIT Sloan Management Review (MIT SMR) and The Boston Consulting Group (BCG). The study, released in a report titled Sustainability: The ‘Embracers’ Seize Advantage, found that 69 percent of companies plan to step up their investment in and management of sustainability this year. Just over one-quarter (26 percent) plan no change, and only 2 percent intend to cut back on their commitment.

"The report reveals two distinct camps of companies: “embracers” — those who place sustainability high on their agenda — and “cautious adopters,” who have yet to focus on more than energy cost savings, material efficiency, and risk mitigation. Furthermore, the report identifies seven specific practices exhibited by embracer companies, which together begin to define sustainability-driven management. These include the need to move early, even if you don’t have complete information; to be authentic and transparent both internally and with the external stakeholders; and to work aggressively to “de-silo” sustainability, integrating it throughout company operations." ~ Sustainability: The "Embracers" Seize Advantage

While the drivers mentioned in the report are appealing, business sustainability is best appreciated when viewed through the lens of your business. Within our business sustainability consulting we encourage clients to consider sustainability as a profit center. Consider how business sustainability programs can help your business to improve sales, grow your business and differentiate your business from the competition.

Reduce business cost:
Sustainable business strategies of waste reduction, energy efficiency, and other operational efficiency measures reduce costs and enable competitiveness. By adding general eco awareness or simply incorporating a few sustainability concepts into and existing supply chain as best practices, companies can proactively address supply stability and quality issues from a different perspective.

Improve Sales:
Business reputation matters. Developing and delivering commercially successful products and services that build customer loyalty are essential in today’s markets.
• Integrate sustainability concepts into product and service development
• Shift sustainability from a cost add-on to a value driver
• Change perceptions to build stronger brands
The result: increase sales, new revenue streams, improved brand loyalty.

While many organizations may have a strong corporate desire to demonstrate environment stewardship and corporate responsibility, companies most often have to make a strong business case to justify time and resources. Stakeholders, regulation, supply chain risk, and other factors weigh heavily in the business case for sustainability. Aside from the benefits of managing risk, stakeholder relations, and business growth, building a business case for sustainability provides a company with a clear understanding of the opportunities, risks and bottom line implications of their defined sustainability strategies.