Sustainability plays a significant role in many companies today. They are seeing benefits from operational efficiencies, goodwill and compliance as well as the greater advantages that come from managing their impact on the environment and communities.
Nestlé, for example, has promised to achieve zero energy waste in all of its 150 European factories by 2020. Its intention is that it will eliminate all sources of waste, or recycle or recover energy from unavoidable residues. It has already achieved this in 39 of its 468 factories worldwide.
Patagonia has put sustainability in the forefront of how it does business and has made big changes. Among other things, Patagonia uses organic cotton where it can, recycles old clothing, powers its headquarters with solar power, donates to environmental causes and launched the Common Threads Initiative where people can buy and sell second hand refurbished Patagonia clothing. Patagonia launched an apparently counter-intuitive advertising program 2 years ago in which it discouraged people from buying its new jacket suggesting they buy used products instead. As a result people bought more new and used jackets. Consumers resonate with the authenticity behind the brand. Hopefully Patagonia convinced those consumers who were intending to purchase a new jacket to do so from it rather than from a less sustainable competitor.
Patagonia contributes a doubling of the company over 5 years, including during the recent tough financial times, as due to customers relating to the company’s values as well as improved operations and global expansion.
12 Corporate goals leading to improved sustainability
Establishing a sustainability plan may be primary goals in a company’s strategic plans or enhancing its sustainability profile may be a consequence of achieving other corporate goals. Enhanced sustainability can be driven by, or result from, the desire to:
– reduce the long term environmental impacts from their business, their products and product packaging
– save costs by using raw materials, energy and water more efficiently
– achieve their Corporate Social Responsibility Goals
– reduce emissions and emissions-related fees or taxes
– drive innovation in product and/or packaging development
– achieve environmental certifications
– manage waste and recycling of by-products better
– keep up to date, and comply, with laws and regulations (such as NGERS, Energy Efficiency Opportunities, the Australian Packaging Covenant, LEED, EPA licences), Standards (such as ISO 14000) or industry codes and policies, and avoid penalties for non-compliance
– understand and manage the risks associated with local price volatility, resource depletion and climate change
-leverage a marketing position to distinguish themselves from their competitors (or at least keep pace)
– make valid claims about product environmental performance and avoid being penalised for making misleading claims including under the Australian Consumer Law
– satisfy customers’ and consumers’ sustainability and life cycle analysis demands
-any combination of the above.
Stakeholder engagement kicks sustainability goals
Engaging the various stakeholders, including senior management and employees across the various company divisions is essential when settling the company’s goals and intentions and developing its sustainability strategies, plans and policies. Without their commitment (especially at the senior level) the company will struggle to set and meet its goals.
Communicating the company’s sustainability intentions to all stakeholders, from the CEO to consumers, is also necessary to see them come to fruition. Understanding the impacts the sustainability goals and policies will have both up and down the supply chain is also relevant. Where necessary, the company may need to work with suppliers, customers and consumers to help achieve the goals set.
Within the company and supply chain, the company’s intentions acts as a guide. Outside the company, they help define the company and reinforce its values. When the intentions are set and agreed by the company the path to its sustainability goals should be made easier.
For more tips on getting started on the road to a sustainable business please download my free Sustainability Checklist from my website. http://www.ascentia.com.au/resources/