Is Having a Sustainable Idea Enough?

In our sustainability consulting, we have learned that one of the keys to business sustainability is a conscious and continuous effort for improvement. By regularly reevaluating strategies and business models, sustainable organizations are able to respond to the critical questions affecting the company and its key stakeholders. For many, the question becomes: What is the cost of sustainability?

In the case of Austin Energy’s GreenChoice, the business model was simple: allow businesses and homes to choose whether or not to lock in a five-year or 10-year rate for electricity generated from wind and solar.

“It was our intent to use (GreenChoice) to stimulate the market for renewables, which it did, and then eventually phase it out,” Roger Duncan, head of Austin Energy.

However, changes in the market placed a strain on this fixed rate program. When oil and natural gas prices were spiking, the 10-year fixed rate was attractive to businesses. However, commodity prices fell and so has the demand for the GreenChoice option.

In many cases, business models and sustainability strategies become stagnate, and companies are slow to take action to respond to change. As a result, a once thriving business model, product line, or innovative idea becomes out of touch with market needs and consumer expectations.

In our professional consulting, we propose that a model for business sustainability needs to be dynamic and continuously engage the expectations of key stakeholders to define value. By referencing these ongoing touch points, business create a dynamic work-plan with periodic checks on performance. Without feedback, a business plan quickly falls out of alignment with its stakeholders.

Through observation, we have come to learn that the sustainable leaders of today are anticipating and taking proactive steps to address change in the business world. At Taiga Company, our sustainability consulting encourages clients to create a competitive advantage by building sustainability concepts and continuous improvement directly into the company’s business model.