Intro to Sustainability

What is Sustainability?

Sustainability in business refers to the way a company’s business practices impact the environment, economy and society. Sustainable business practices reflect a long-term view instead of focusing on short term economic gains. It is also referred to as triple-bottom-line strategy. When a company commits to sustainability, it means that the company’s business decisions will focus on conservation of resources, minimize waste, select environmentally and socially responsible partners and vendors, and provide a financially and emotionally rewarding place to work.

Sustainable business practices reduce operation costs, enhance productivity, and thereby increase profitability. It ensures long-term growth and prosperity. Sustainability saves money, for example, by reducing consumption of resources. It helps attract and retain customers who support businesses that engage in sustainable practices. Federal as well as state governments offer a wide variety of incentives and tax benefits to businesses for practicing sustainability.

Why does sustainability matter to my business?

Market competition today has changed. Providing a great product or service is no longer enough to sustain business success. From customers to government agencies, all are demanding companies to take on corporate responsibility. Suppliers, investors, consumers alike are demanding companies to examine their business practices and take responsibility for its impact on the environment and society. A survey of social trends conducted by the research firm GlobeScan in 2007 found that consumers, 55% surveyed in North America, punish companies whose business practices harm the environment. These discriminating consumers have created a $306 billion ‘green’ market.

Financial markets are also showing interest in the role of sustainability practices of businesses. Dow Jones has created Dow Jones Sustainability Indexes to track the financial performance of sustainability driven companies. Al Gore and David Blood made a point in McKinsey Quarterly May 2007 that investing in sustainability delivers above-average returns.

Sustainability issues and climate change are increasingly influencing purchase decisions of consumers and customers. A company that ignores environmental or social issues may limit its value through loss of opportunities.

How to get started with sustainability?

Step 1: Set sustainability goals.

Where do you want to be? Focus on where you want to take your business, say 2, 3, or 5 years down the road. Develop 3 to 4 goals that will make your business sustainable over a period of time. For example: Reduce energy bill by 25% in 12 months, replace all lights with CFLs by next month, reduce waste cost by 50% in two years, etc.

Step 2: Sustainability Assessment.

Where are you now? Gather baseline information on what your business pays for energy, key economic, environmental and social issues. This information will serve as a baseline for measuring progress on your sustainability goals.

Step 3: Appoint a sustainability champion.

A sustainability champion knows all about sustainability that can help your business achieve triple-bottom line success. This person will drive the program and be accountable for progress in sustainability initiatives.

Step 4: Create a roadmap for achieving sustainability goals.

How to get there? Identify the steps you need to take to achieve your sustainability goals. Develop an action plan to translate the vision into action oriented items. A good action plan should provide goals and objectives, identify issues and concerns, recommend items and assign responsibility.

Step 5: Sustainable measures.

Develop a set of yardsticks or indicators to measure progress based on the goals and roadmap. These yardsticks or indicators will highlight critical social, environmental and economic problems and provide a way to measure success in order to alleviate these problems.

Step 6: Pilot project.

Start with a small pilot project. Take on easy goals first and then the difficult ones. For example, educate yourself and your employees to turn off lights after use. Do this for a couple of months.

Step 7: Check your progress.

Using the set of yardsticks or indicators developed in step 5, measure your company’s progress periodically and make adjustments as necessary. Take on new sustainability projects by incorporating learning from the pilot project.