Environmental problems = business opportunity.
Global warming. Rising energy costs. Decreasing resources. Hazardous substances. Environmental changes today not only threaten our standards of living – they challenge longstanding assumptions about how profitable businesses should be run.
Yet the essential goals of business remain the same: Respond to market needs. Reduce costs. Increase profits. Get a leg up on the competition. Be a respected and responsible part of the community.
Regardless of the initial reason organizations implement sustainability initiatives, most have come to an important realization: implementing such practices can accomplish most, if not all, of the goals above. And these companies have gained a compelling advantage over competitors who are still doing business as usual.
Here are just a few examples of companies who have realized a competitive advantage and increased profitability by implementing sustainability initiatives:
General Motors last year recycled 92% of all the waste generated in its manufacturing plants around the world and in doing so, has created a lucrative scrap recycling business generating nearly $1 billion in annual revenue. Learn more…
The Hirdaramani Group, a leading textile and apparel manufacturer in Sri Lanka, reports that its LEED Gold standard Mihila factory has reduced energy usage by 48% and water usage by 70%. Learn more…
Columbia Forest Products developed PureBond™, a new line of formaldehyde-free plywood and particleboard. The new product line is a cost-neutral alternative to traditional plywood manufacturing using formaldehyde, which is a known carcinogen, and helped the company create a significant advantage over competitors, particularly low-cost manufacturers in China. Learn more…
Marks & Spencer's ambitious £200 million, 100-point "Plan A" is expanded to 180 points to be achieved by 2015. The goal for M&S is to become the world's most sustainable retailer, because this is now “the only way to do business. There is no Plan B.” Learn more…
British retailer Sainsbury announced a £1 billion sustainability plan in an effort to outpace rivals Marks & Spencer and Tesco. Learn more…
Frito-Lay, which is already saving an estimated $55 million per year on resource conservation efforts, reports that its state of the art Casa Grande manufacturing plant has achieved "near net zero" status. Learn more…
Stonyfield Farms achieves 46% reduction in transportation over four-year period, leading to savings of $7.6 million -- plus millions more from other initiatives. Learn more…
Levi's initiatives saves 16 million liters of water. Learn more…
Procter & Gamble announces a new comprehensive long-term sustainability strategy. Learn more…
What is “Sustainability?"
A common definition of sustainability is meeting the needs of today’s generation without compromising the ability of future generations to meet their needs.
A simpler definition is:
Enough, for all, forever.
A “sustainable business” is one that is able to operate profitably indefinitely. It is more concerned with maximizing total profits over time than maximizing profit today at the expense of profit – and possibly company viability – tomorrow.
“Sustainable business initiatives” are those that take global environmental problems into account in planning and operations. A sustainable company considers, for example, the realities of global warming and rising energy costs, just as it considers production cycles and competitor actions.
At its core, a sustainable business platform is simply sound business strategy with a few new tools to address environmental issues.