Showing posts with label Business. Show all posts
Showing posts with label Business. Show all posts

COVID-19 Exposes Supply Chain Vulnerabilities that Cause Food Insecurity

The cornavirus pandemic has highlighted supply chain weaknesses that are causing food shortages. As explained in an FAO report, the global pandemic is threatening supply lines leading to concerns about food insecurity. "A protracted pandemic crisis could quickly put a strain on the food supply chains, a complex web of interactions involving farmers, agricultural inputs, processing plants, shipping, retailers and more," the report said. In a March paper the U.N. Committee on World Food Security (CFS) warned that Covid-19 will cause heightened instability in global food supply. The pandemic also prompted the Food and Land Use Coalition to issue a call to action for world leaders over what they describe as a humanitarian crisis requiring urgent coordinated action.


Food shortages are already apparent around the world and according to Business Insider, food retailers may experience food shortages for 18 months or more. Food that comes from large industrial farms are especially vulnerable. The megabarns in which livestock and poultry are produced are breeding grounds for disease. Social distancing is not an option for farm workers or those that work in food processing facilities. Disease rapidly spreads in such workplaces and when these workers get sick the supply chain breaks down.

However, our current situation affords insight into the mechanics of supply chain disruptions. COVID-19 is far from over and it is certainly not the last pandemic we will face. We also know that climate change will be far more disruptive to supply chains. A warming planet interferes with food production by decreasing the fertility of soils, reducing the number of pollinators and increasing extreme weather events including droughts and floods.

As explained by Seckin Ozkul, a supply chain management expert at the University of South Florida, these disruptions help us to identify vulnerabilities. "We had seen regional, we had seen national disasters and destruction, but we had never seen a full global [disruption] at the same time — everyone shot down at the same time," Ozkul said. "So now we want to look at this so that the next time it happens we can be better prepared and we can actually take the necessary precautions so we don't see the impact as much as we see it now."

Using the lessons gleaned from this pandemic we can redesign our supply chains in ways that mitigate against the risks of disruption. One of the most important things we can do is create sustainable supply chains. To help reduce the risks associated with factory farms we can diversify the procurement of our foods so that we are not overly dependent on any one source.

Related
Building Resilience to Supply Chain Disruptions due to Climate Change
Supply Chain Sustainability Guidance and Standards
Sustainable Procurement: Environmental Social and Economic Supply Chain Considerations
How to Craft Value Out of Sustainability Focused Supply Chains
The Sustainable Supply Chain Imperative
The Supply Chain of CO2 Emissions (White Paper)
Digging In: The Nuts and Bolts of Supply Chain Sustainability (White Paper)
Sustainable Supply Chains are Profitable

Climate Change was the Hot Topic at the World Economic Forum in Davos

Climate change was the dominant theme at and this year's World Economic Forum (WEF). Panel discussions covered a wide range of related topics and including global warming, ocean sustainability and biodiversity. Al Gore, David Attenborough and Jane Goodall were among the participants.

This year's Global Risk Assessment report released at the WEF in Davos revealed, yet again, that climate change and related phenomenon are among the greatest risks both in terms of impact and likelihood. The report surveys nearly 1,000 decision-makers (public sector, private sector, academia and civil society) who are asked to assess the risks facing the world.  Over a ten-year horizon, extreme weather and climate-change policy failures are seen as the gravest threats.

The WEF has issued many similar warnings in recent years. The 2016 Global Risks Report was the first that put environmental risks at the top the ranking. This report said the failure of climate change mitigation and adaptation is the risk with the greatest potential to impact society. It specifically warned about the impact of climate change on food security. As an interesting aside, the 2016 report included a prophetic warning about the risks associated with disempowered citizens.

The experts at Davos called for corporate and government action and there was widespread agreement that this requires economic change. As reported by CNN, these experts singled out fossil fuel subsidies in G7 countries. "There are still fossil fuel subsidies from G7 countries — that's ridiculous," said Rachel Kyte, special representative of the UN Secretary-General for Sustainable Energy. "Why we are subsidizing something we know is killing our children, poisoning them and affecting their ability to learn? That's beyond me," she added.

Attenborough, Gore and others have been sounding the alarm about climate change for years. However, the most powerful warning came from 16 year old Greta Thunberg who told attendees: "I don't want you to be hopeful, I want you to panic, I want you to feel the fear I feel every day," She also pulled no punches when she ascribed blame those assembled in Davos: "Some people say that the climate crisis is something that we will have created, but that is not true, because if everyone is guilty then no one is to blame. And someone is to blame," Thunberg said flatly. "Some people, some companies, some decision-makers in particular, have known exactly what priceless values they have been sacrificing to continue making unimaginable amounts of money. And I think many of you here today belong to that group of people."

After her speeches at COP24 and the WEF Greta has emerged as a leading voice for climate action. She is a realist in a world where many are either ebulliently optimistic about the prospects for climate action.

"Many people say that this is not an easy issue, we cannot just say that this is how it is, it's not black and white. But I say that this is black and white. Either we stop the emissions or we don't. There are no gray areas when it comes to survival,"Greta said.

In a chapter on the human causes and effects, the Global Risks Report 2019 calls for greater action around rising levels of psychological strain across the world.

"The world faced a growing number of complex and interconnected challenges in 2018. From climate change and slowing global growth to economic inequality, we will struggle if we do not work together in the face of these simultaneous challenges," the report's authors conclude.

Related
Climate Optimism and Sustainability Initiatives at the World Economic Forum in Davos
Climate Focus at The World Economic Forum in Davos
This Year's WEF Gives us Reason to Hope
Video - WEF 2015: A Climate for Action
WEF Summaries: Climate Change
Towards a Global Climate Agreement at COP21 (WEF Summaries)
Business Leadership on Climate Change (WEF Summaries)
Curbing Fossil Fuels - Carbon Pricing and an End to Subsidies (WEF Summaries)
The Value of Investing in Climate Mitigation (WEF Summaries)
Global Economies Feeling the Heat from Climate Change (WEF Summaries)
Collaboration and Cooperation are Imperitive (WEF Summaries)
What is The World Economic Forum (WEF)
Risks Associated with Environment, Climate, Water Crisis and Extreme Weather in the WEF Report

Event - Goodness Matters Benevity Conference

The Goodness Matters annual Benevity conference will take place on February 6 - 8, 2018 in Palm Springs, California.  The occassion also marks Benevity's tenth anniversary.  At GM2018 corporate giving professionals will gather in sunny Palm Springs to learn and participate in discussions that will augur the next era of corporate goodness. From insightful talks to client showcases, product previews to fun networking opportunities.


GM2018 will offer insight into the evolving role of corporations as catalysts for positive change and prosocial behavior in elevating both employee experience and business outcomes. With practical takeaways aimed at increasing your corporate Goodness program and more networking and peer learning opportunities than ever before.

Be among the first to hear about the accelerating shift from employee engagement towards a more holistic focus on employee experience. Learn how neuroscience, diversity, inclusion and a culture of belonging are helping shape the next era of Goodness.

Hear from your peers and thought leaders as they share success stories and proven best practices to help you tackle challenges and make the most of new opportunities. Gain unparalleled insight with the I10 series where 10 Inspired talks offer up the goods right from the source!

The best ideas and solutions to the toughest problems are seldom arrived at alone! Take advantage of the bevy of networking opportunities #GM2018 has to offer to make meaningful connections with likeminded Do-Gooders... perhaps over a shared bevvy or two of your own!

Get an exclusive first look at Benevity’s newest products and services. See how you can leverage their ongoing innovation through hands-on demos with on-site experts. They are ramping up to change workplace engagement programs to enable and empower more prosocial behavior than ever before.

GM2018 will also offer workshops alongside breakout sessions. Attend workshops to strengthen your understanding of what makes for an impactful program and dive deep into a breakout session to further your knowledge of Brevity's products and how you can benefit from best harnessing their power.

At the 2017 conference attendees heard from trendsetters and bold thinkers who are transforming their programs and workshopped big ideas with peers. Also on the agenda was finding out how to harness all the elements of Goodness including giving, volunteering and grants, to make big strides in their workplace and community.

GM2018 also offers practical takeaways aimed at increasing corporate goodness programs, as well as networking and peer learning opportunities. Realized Worth’s very own Chris Jarvis will join CEO Bryan de Lotinville in an opening night discussion.

To register for the 2018 Goodness Matters Benevity conference click here.

Apple's Earth Day Leadership in 2017

Leading corporations are helping to show the way forward this Earth Day and no company has come further in recent years than Apple. 

They were slow off the mark but since Tim Cook took over as CEO in 2011 and hired former EPA administrator Lisa Jackson in 2013 Apple has made amazing progress. Jackson is Apple's VP of environment, policy, and social initiatives. In the last four years Apple has significantly improved their environmental sustainability performance while ameliorating working conditions and transparency.

In 2017 Apple led the Greenpeace Tech Company Rankings and strengthened its competitive advantage by showing leadership in recycling, clean energy, emissions reduction, waste management and water stewardship.

Standing up to Trump

Despite the anti-environmental orientation of Trump and Republicans, Apple continues to honor and improve on the climate pledges it made under President Obama. In the US Apple has been building giant solar power plants near its data centers and offices in North Carolina, Nevada and California. Jackson is letting the Trump administration know where Apple stands. "One thing this administration has made clear is that they want to hear from business and so we’re going to do everything we can to make our values known," Jackson said. 

There are lots of good reasons why businesses are combating climate change. Apple is one of several companies that are resisting Trump and rejecting his false narrative that regulations are bad for business.

Recycling

Apple is a recycling leader. Just in time for Earth Day Apple vowed to add to their efforts by ending mining and using only recycled materials. This commitment is motivated by environmental concerns and to mitigate against risks associated with supply chain shortages. Apple is acknowledging the impact that electronics manufacturing is having on the planet. Rather than mine the earth for rare minerals and metals Apple plans to use only recycled materials for its products. "Climate change is undeniable," the company said in a recent report. "Earth's resources won't last forever. And technology must be safe for people to make and use. We don't question these realities -- we challenge ourselves to ask what we can do about them in every part of our business."

Apple makes the point that bold commitments are required even if the details have yet to be ironed out. Although the specific supply chains have yet to be identified there are sufficient raw materials in the billions of discarded phones and other recyclable electronics.

"We're actually doing something we rarely do, which is announce a goal before we've completely figured out how to do it," Jackson told Vice. "So we're a little nervous, but we also think it's really important, because as a sector we believe it's where technology should be going."

Being a little nervous means they are pushing the envelope of the possible and that is precisely the kind of effort we need to see from the corporate world.

"We are committing as a company to not necessarily having to source from the earth for everything that we need," Jackson said.

Given the rising rates of cell phone use and the low recycling rates (approximately 16 percent in 2014) Apple sees an opportunity and is prepared to lead the industry in the area of using recycled materials. 

Renewable Energy

Apple is among several companies that have taken the "100% Renewables" pledge. Apple relies on renewables in 24 countries accounting for 96 percent of its energy usage. Apple has also encouraged their suppliers to do use renewable sources of power. “We look at our carbon footprint as so much more than just our office, our data centers, our stores – even our distribution centers,” Jackson said. “All that’s included in our 96 percent, but now we’re moving on to our supply chain.”

In April, Environmental Leader reported three more suppliers (Compal Electronics, Sunwoda Electronics and Biel Crystal Manufactory) have committed to using renewable energy to manufacture Apple components. There are now a total of seven Apple suppliers who have taken the 100 percent renewables pledge.

Apple and its suppliers expect to generate over 2.5 billion kWh annually of clean energy by the end of 2018. Apple is also getting ready to add clean power to the grid. In June 2016 Apple applied for a federal license to sell any excess solar electricity.

Emissions reduction

Apple has adopted science-based emissions reduction targets and they are also working to reduce supply chain emissions by increasing suppliers’ renewable energy use. In the first year of the company’s energy efficiency program, suppliers at 13 sites prevented more than 13,800 metric tons of carbon emissions through replacing outdated or inefficient heating, cooling, and lighting systems, repairing compressed air leaks, and recovering and redirecting waste heat.

In 2016, Apple tripled the number of supplier sites participating in its energy efficiency program. Through this effort Apple suppliers have reduced their carbon emissions by 150,000 metric tons. Apple’s 2017 Supplier Responsibility progress report indicates that the adoption of renewables by several large suppliers will reduce carbon emissions by 7,000,000 metric tons per year by the end of 2018.

Waste management

In 2015 Apple suppliers diverted more than 73,000 metric tons of waste from landfills in 2016, the company’s suppliers diverted more than 200,000 metric tons of waste from landfills. As reported by Environmental Leader (EL) in March, Apple’s 2017 Supplier Responsibility progress report indicates that the company’s suppliers had for the first time achieved 100 percent UL Zero Waste to Landfill validation for all final assembly sites in China.

The average environment assessment score across Apple’s 705 supply chain assessments in 2016 was 87 out of 100.

Apple worked with Tech-Com final assembly supplier in Shanghai and the local recycling facility to develop a better process for separating and recycling industrial waste and managing food waste. This enabled Tech-Com to recycle 100 percent of its manufacturing and composting its food waste. Since 2015, Tech-Com has diverted more than 10,000 metric tons of waste from landfills. Apple supplier Foxconn Zhengzhou recycling efforts succeeded in diverting 40 percent of landfill-bound waste and much of the remaining waste went to waste-to-energy facilities. In early 2016 Foxconn Zhengzhou was already 96 percent landfill-free and by the end of the year they had achieved their goal of being 100 percent landfill free.

Hazardous materials

Last year 100 percent of process chemicals at all final assembly facilities were free of “Apple-prohibited substances”. Apple has identified a list of hazardous chemicals in their Regulated Substances Specification list. Apple has prohibited or limited the use of these chemicals in their manufacturing processes. The company is now working with its suppliers to identify and eliminate the use of these chemicals at its non-final assembly facilities.

Water stewardship

Apple’s 2017 Supplier Responsibility progress report also highlights efforts to improve water management. Apple’s Clean Water Program, which focuses on using less freshwater in suppliers’ processes and increasing the reuse and recycling of treated wastewater, saved more than 3.8 billion gallons of freshwater in 2016. This represents a 35 percent average reuse rate across 86 sites. Since 2013, Apple’s water management program has saved more than 8 billion gallons of freshwater, Apple says.

Competitiveness

Apple’s sustainability efforts are a model that others should follow. These efforts are not just good for the planet they are benefiting the bottom line and reducing risks by becoming more resistant to threats. As reported by environmental leader, Apple Foxcoon Zhengzhou recyclingApple’s latest supply chain audit report shows its push for more rigorous environmental standards and renewable energy production across its supply chain is working.

"We’re proud of the progress we’ve made so far," writes Apple COO Jeff Williams, in a letter at the beginning of the supplier responsibility report. "Yet even as you read this, Apple continues to address challenges throughout the supply chain. We are openly working with industry partners, governments, NGOs, and others who share our vision of improving lives and caring for the environment."

As explained in the EL article, "other companies should take note, and look for ways they can improve their supply chain sustainability to stay competitive." Leading companies can take a page from Apple’s playbook and continue pursing environmental sustainability goals across the supply chain.

Related
Apple Proves its Never too Late to Go Green
Apple's Growth Streak Has Ended but its Sustainability Leadership is Still Going Strong
Apple's Apps for Earth Initiative Raised Awareness and Funds for WWF
Apple's Renewable Energy Investments in China
Apple Makes Sustainability Investments in China
Apple's Sustainability Leadership
Video - Massive Apple and First Solar Deal
Lisa Jackson on the Road to 100% Renewables (Video)
Apple reduces GHGs and Increases Renewables
Apple's Green Efforts have Contributed to their Bottom Line
Apple Supports the US Clean Power Plan

Apple Leads Greenpeace Tech Company Rankings

For the third year in a row Apple is at the top of Greenpeace's environmental rankings for tech companies in 2017.  Apple led platform operators with a score of 83 percent on Greenpeace’s Clean Energy Index. Facebook came in second with a score of  and Google 67 percent and Google came in third with 56 percent.

Apple's final grade was an A for energy transparency, renewable energy commitment, energy efficiency and mitigation, and renewable procurement. The company received a B for advocacy. Google got all A's except for a B in the transparency category, however as noted above they did not fare well in the clean energy component.

These rankings assess the energy footprints of large data center operators. They appeared in a Greenpeace USA report titled, "Clicking Clean: Who is Winning the Race to Build a Green Internet?" This is the eighth annual ranking of tech companies conducted by Greenpeace that is released early in the new year. This report was released on January 10, 2017.

Apple has evolved into one of the most environmentally progressive companies in the world. They have some very ambitious plans for the near future. They will soon move into their Apple Campus 2. When it opens it will be powered by almost three quarters of a million square feed of solar panels.

As stated in the report, Apple has "played a catalytic role within its IT supply chain, pushing other IT data center and cloud operators who help deliver pieces of Apple’s corner of the internet to follow their lead in powering their operations with renewable energy."

There was a new winner this year in the colocation and content delivery network company category. Las Vegas based Switch develops data centers and is involved with the telecommunication, cloud, and colocation services. They appear on the list for the first time due to the fact that they are already entirely powered by renewable energy. Switch was given all A’s and 100 percent on the clean energy index.

As part of the RE100 pledge Apple, Facebook and Google are all converting to clean energy. All three tech giants have all pledged to power their operations with 100 percent renewables.  Growth at both Apple and Google is powered by clean energy.

According to the report information technology companies are increasingly relying on renewables. The IT industry is an energy hog so the more it relies on renewable energy the less it will have to draw from a (fossil fuel) powered grid.

This trend towards clean energy is all the more important in light of the fact that streaming is projected to significantly increase power consumption in the sector. The IT industry currently consumes more than 7 percent of global electricity and it is expected to grow exponentially in the future.

Related
Apple's Apps for Earth Initiative Raised Awareness and Funds for WWF
Extracting Value from Recycling - Apple's e-waste Management
Apple's Renewable Energy Investments in China
Apple Makes Sustainability Investments in China

Apple Proves its Never too Late to Go Green
Apple's Sustainability Leadership
Video - Massive Apple and First Solar Deal
Companies with the Best CSR Reputation
Lisa Jackson on the Road to 100% Renewables (Video)
Apple reduces GHGs and Increases Renewables
Apple's Green Efforts have Contributed to their Bottom Line
Apple Supports the US Clean Power Plan

Engaging Boards of Directors on Sustainability is a Key Success Factor

Boards of directors can play an invaluable role helping a company to inculcate sustainability into their DNA. Because of their unique position, boards of directors are well placed to integrate sustainability into business strategies and practices. This supports both the long-term profitability and the viability of an enterprise.

However, there is a disconnect between what is good for a firm and what they are actually doing. Most boards of directors are not engaged in sustainability even though almost all managers and directors think they should be.


Benefits
Companies that have engaged boards of directors are more than twice as likely to successfully accomplish their sustainability initiatives. Sustainability has become a mainstream phenomenon and benefits of sustainability have been well documented. This includes a plethora of research that demonstrates strong ROI.  While success is correlated with companies where colloboration was supported by boards, the success rate is cut in half when company boards where not involved.


Failure to engage

Despite the benefits, many boards of directors are not getting involved in sustainability. The disconnect between what is good for a company and what they are actually doing represents a missed opportunity. Research conducted by MIT Sloan Management Review, The Boston Consulting Group and the UN Global Compact, indicates that 87 percent of managers and executives think boards of directors should be engaged in sustainability yet the research suggests that only 10 percent are actually engaged.  An annual report from The Conference Board titled CEO Challenge suggests that CEOs are not turning to their boards of directors to address sustainability challenges.

Collaboration

Almost all managers and executives (9 out of 10) say that sustainability requires collaboration. According to these executives and managers, collaboration serves reputation and brand building, innovative products and services and the transformation of markets towards sustainability. Collaboration between companies, workers, governments, civil society, investors, and academia can augur a range of societal benefits including putting pressure on suppliers to develop a responsible global supply chain.

Antidote to short termism

One of the problems associated with sustainability is the failure to lay out a long-term strategic view. Getting boards of directors to engage with sustainability enables a company to develop long-term` strategic thinking. This includes longer term forecasting, planning, and preparation. It also enables companies to do a better job of zeroing in on risks and opportunities. Together this contributes to a focus on long term success.

Take-away

The take-away is clear, boards of directors should be given explicit oversight of sustainability issues and boards need to allocate time to sustainability issues. It is also highly desirable to have board members with expertise in the sustainability particularly those areas that are most material to the company.

Resources

Two years ago the UN Global Compact launched a program to help "move sustainability issues from the backroom to the boardroom". This program is tailored to the needs of the individual company and delivered in-house by a roster of international experts.

The UN Global Compact Program helps Boards to:
  • Align on the strategic imperative and materiality of corporate sustainability as critical for the company’s long-term viability
  • Realize the integral role that Board members can and should play in overseeing, incentivizing and driving corporate sustainability, by embedding it into Board duties, composition and structure
  • Take action to demonstrate leadership on Board adoption and oversight of corporate sustainability with investors, employees, customers and other stakeholders

For more information and strategic guidance consult the following documents from the UN Global Compact:

Joining Forces: Collaboration and Leadership for Sustainability
A New Agenda for the Board of Directors: Adoption and Oversight of Corporate Sustainability
Corporate Sustainability: An Important Agenda for Boards Of Directors


Related
Businesses are Thriving with Sustainability and Risk Dying Without It
Why Corporations are Embracing Sustainability
The Business of Sustainability Reaches a Tipping Point in 2015
Corporate Sustainability in 2016: The Rise of the CSO
Businesses Adopting Science Based Emissions Reduction Targets
2016 Corporate Sustainability Leaders
The Business Case for Sustainability
Carbon Reduction Makes Good Business Sense
Sustainability is a Business Opportunity
Sustainability Best Practices Case Study

Event - The Sustainability Summit 2017

This Summit will take place on March 23-24, 2017 in London. What does COP21 and the push for greater environmental sustainability mean for business? The Sustainability Summit will bring together key thinkers, policymakers and business leaders, who will deliver strategies, ideas and solutions to decision makers, helping them to turn challenges into new opportunities and prepare for the future.

The issue of sustainability is a multifaceted one, and cannot be tackled by policy alone; international business must also rise to the challenge of reversing the damage that we have wrought on our environment. But how can businesses evolve and develop their practices to improve their footprint? Is it possible to make adjustments that have a net positive impact on revenue? And what are the challenges that multinational companies face in implementing such changes across borders?

In March 2016, The Economist Events’ Sustainability Summit in London delivered an alarming prognosis: adapt or die. This year we will be evaluating progress and the scalability of sustainability initiatives while asking the crucial question: what does COP21 and the push for greater environmental sustainability mean for business? Bringing together key thinkers, policymakers and business leaders the Sustainability Summit will deliver strategies, ideas and solutions to decision makers, helping them to turn challenges into new opportunities and prepare for the future.

Speakers

Bob Collymore
Chief Executive Officer, Safaricom

Daniel Franklin
Executive Editor,
Editor The Economist

Helen Hai
Chief Executive Officer,
Made in Africa

Miranda Johnson
Environment Correspondent
The Economist

Greg Lowe Global
Head of Resilience and Sustainability,
Aon

Jeremy Oppenheim
Programme Director,
Business and Sustainable Development Commission

Steve Waygood
Chief Responsible Investment Officer,
Aviva Investors

Mark Wilson
Chief Executive Officer,
Aviva

Why attend? Questions that will be answered

What steps can we take to break the prevailing short-termism which dominates the markets and begin to act with an eye to the future? How can policy-makers better address market failings and encourage a move toward a circular economy? In what ways do our current, global regulatory frameworks account for climate change? How can we leverage the capital markets and big business to create a more sustainable economy? Where should investors direct their capital in order to make the biggest impact? From source to shelf, how can businesses take better stock of natural capital and ensure resource efficiency all the way across their supply chains? Could technological innovation provide some of the solutions we need to deliver sustainable growth? And, how can we scale the green tech that already exists? How can we further the social components of the SGDs and create a more inclusive marketplace around the world?

Attendees will
  • Network with more than 200 international leaders from business, finance and government Make connections with those at the forefront of the sustainability effort and discover new opportunities for cross-border and cross-sectoral collaboration
  • Shape the evolving dialogue on sustainability and share ideas with decision-makers and innovators
  • Get to grips with practical steps businesses are taking to scale-up action and create the swift change we need to realise the transition to a two degree world
  • Gain a fresh perspective on sustainability as a value driver and differentiator for business and finance
  • Join the global effort to create an inclusive and environmentally sustainable marketplace

To register click here.

Related
How Sustainability has Become a Mainstream Phenomenon
Businesses are Thriving with Sustainability and Risk Dying Without It
Why Corporations are Embracing Sustainability
The Business of Sustainability Reaches a Tipping Point in 2015
Corporate Sustainability in 2016: The Rise of the CSO
Comprehensive Compilation of Studies Proving the ROI of Sustainability
Businesses Adopting Science Based Emissions Reduction Targets

How Corporate Transparency can Save the World
The Business Case for Sustainability

How Sustainability has Become a Mainstream Phenomenon

Sustainability programs are not just for forward-thinking international conglomerates they are now part of mainstream practices for business both large and small. The data has convincingly made the case that sustainability is good for business and managers are integrating it into their strategies in ever increasing numbers.

There are a number of good reasons why businesses are embracing sustainability. In 2015 sustainability reached a tipping point and in 2016 it has become obvious that sustainability is a 21st-century megatrend. We are even beginning to conceive of a post sustainability world.

At the end of last year leading businesses made carbon reduction pledges at COP21. US companies like Apple, Microsoft, Mars, Ikea and others filed legal briefs supporting President Obama's the Clean Power Plan and corporations are embracing renewable energy in unprecedented numbers. As a result, corporations are increasingly decoupling their growth from their emissions. They are also adopting science-based emissions reduction targets.

As reported by Environmental Leader, the Conference Board’s annual CEO Challenge survey, indicated that sustainability was considered to be among the top five global challenges. What makes this remarkable is the fact that this is the first time that sustainability has made it into the survey's top five.

The most recent UN Global Compact-Accenture CEO Study report finds that 70 percent of major corporate executives see climate change presenting growth opportunities for their company within the next five years. A 2014 McKinsey survey finds 43 percent of executives say their companies are looking to align sustainability with their overall business goals, up from 30 percent two years earlier.

In the 2016 State of Responsible Business Report, 71 percent of corporate/brand respondents said that their CEO is convinced of the value of sustainability. There has been and almost ten percent increase in execs who feel that sustainability is integrated tightly enough into broader business strategies. More than half of Apparel, FMCG and Manufacturing respondents said that they pay for external assistance with their sustainability strategy.

The ROI on sustainability is supported by a number of studies which demonstrate the business case for sustainability. Sustainability not only drives profits it also contributes to cost savings through efficiency. The ROI on sustainability is best illustrated by Unilever which has attributed half its growth to sustainability in 2015. Unilever is but one of many companies that have generated a billion dollars or more each year from sustainable products or services. Some of the other companies profiting from sustainability are General Electric, Ikea, Tesla, Chipotle, Nike, Toyota, Natura and Whole Foods.

This data leads to the common  misconception that sustainability is only for the large corporate players and not for SMEs. Nothing could be further from the truth. Not only do small businesses share in the responsibility to be better stewards, they must also address competitive pressures to promote their brand, increase revenues, and decrease costs.

There are a number of easy things that even small businesses can do that will decrease the net costs of their operations. From going paperless to reducing packaging, sustainability programs are for all businesses regardless of size. The single most important thing that any smart business must do is carefully scrutinize and manage their energy usage.

Adopting sustainability is no longer a choice it is a market dictate.  In fact it is safe to say that businesses are thriving with sustainability and risk dying without it.

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