August 23, 2010
A Manufacturer’s Path to Sustainability Starts with Tomorrow’s Solution
Sustainability is redefining today’s business model as arguably the top area of focus for corporations. The building products manufacturing industry, in particular, carries a large responsibility to the environment, and a key role in ensuring a viable and safe world for future generations. What is produced today must not only exist tomorrow, next year, and many years beyond – it must live and provide purpose.
Operationally, manufacturers encounter some of the biggest environmental issues and must manage resources and waste efficiently. These companies must possess superior insight, knowledge and transparency regarding the products society uses today, which will have a major impact on our future. With the opportunity to design and produce solutions that fit market needs, manufacturers must have sustainability at the core of their purpose, offerings, strategies and infrastructure to deliver true value to customers, stakeholders, employees, society and the environment.
That said, companies mustn’t be influenced by the often-misinterpreted term, “sustainability.” Sustainability is not green, grey, blue or any other color. It is not necessarily about LEED credits and “eco” terminology, but it is about the longevity and lifetime value of a product or process as a practical solution for today and the future. Ensuring the presence of quality, solution-driven products and processes requires a shared sustainability vision within an organization and a program that is unique to what we’ve seen in sustainability attempts thus far.
Vision, leadership, partnerships and continuous communication are inextricable to each other and are key pillars for a successful sustainability program.
Vision
Define a sustainability vision that includes the opinions and ideas of your entire organization and the education process will be easier and more productive. Your employees need to understand the need for sustainability as well as its internal, external and competitive benefits. Encourage voluntary certification programs that contribute to your sustainability goals, strengthen and add value to your organization and differentiate you from your competition.
Using a cross-divisional and cross-functional team to develop and further integrate your sustainability vision will assist in ensuring your message is carried throughout your organization. Your vision statement will be inherently unique because it was built by your team, for your team and is specific to the industry in which you work, the products you manufacture and the impact you have on your communities and the environment.
Leadership
Create a sustainability task force, consisting of positions in all departments, from management to operations, with the role of defining and monitoring measurable metrics for your organization’s sustainability goals. Strong leadership will promote:
- Improved operational efficiencies and saved resources
- Innovation that is targeted on market needs
- Internal advocacy and better productivity
CSR and Industry Collaboration
More and more companies have a social responsibility policy, but the right match is important. Foster relationships with organizations where you can truly make a difference. Align capabilities and evaluate benefits for both parties.
Collaboration and continuous communication with your customers, suppliers and key audiences is important to further understand market needs, design better solutions and continue education on the benefits of your service.
A manufacturer will know it is operating sustainably when:
- The definition of sustainability is understood, integrated and visible throughout the organization and its culture, without the need for forced policy
- The terms “product” and “solution” can be used interchangeably
- Innovation and strategies are a direct result of actual market needs and external collaboration
- There are improvements in health, safety and operational efficiencies such as reduced accidents, saved energy and resources and the elimination of waste.
When an organization sees positive outcomes in its people, planet and profit, it is evident it has made a change for the better and has exponentially increased its value.
Achieving sustainability within the manufacturing industry will require a strong focus on quality solutions for the future, a true culture change and a transparent approach to the way we operate. Building products manufacturers in particular should administer a sustainability program that fits within their organization and supports the overall goal of improving our nation’s infrastructure and ensuring a promising future for generations to come.
Richard Manning is the president of Hanson Building Products North America, a leading manufacturer of concrete gravity pipe, concrete and steel pressure pipe, concrete precast products including bridge and structural components, roof tile, brick and hardscapes. For more information, please visit www.hansonbuildingproducts.com
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Reader Comments
Great article. Manufacturers operate a unique position in the product life cycle chain – they can significantly reduce the footprint of an item by making their processes more sustainable, but they can also produce a product that will have a smaller carbon footprint throughout all future stages of its life cycle, including end use.
There are a number of simple changes that manufacturers can make to cut their energy consumption, save money, and reduce their internal footprint, but it is important to make the types of cultural and structural changes that you mention to generate the greatest sustainable improvements.
For instance, The Taylor Companies, a furniture manufacturer in Northeast Ohio, has revamped itself as a sustainable company. They have reduced or diverted over 90% of the waste at their Bedford plant, rehabbed a brownfield to build their new facility, have found new partners to actually sell materials, like palettes and leather scraps, that they would have otherwise paid to discard, etc. They were the first business in Ohio certified as sustainable by the Green Plus program. But beyond just these changes, the business has engaged its employees in the sustainability process, demonstrating to them that reducing waste and becoming greener is better for the business and for them as individuals and employees. This type of engagement from the top-down and the bottom-up is necessary for any company to truly become sustainable.
- Tim Kovach
Product Coordinator, Energy at COSE
http://www.cose.org/blog
http://www.twitter.com/COSEenergy
Tim Kovach | August 23rd, 2010
Richard, this is an excellent article. I hope it gets the circulation that it deserves both within and outside your industry, since sustainability should be addressed by all business sectors, not only building products manufacturing.
In the next few weeks Trust Across America (www.trustacrossamerica.com) will be releasing the findings of a study of approximately 2000 public companies using a methodology that we are calling FACTS™. FACTS provides a holistic overview and/or a detailed analysis for these companies in five key areas-financial stability, accounting controls, corporate governance, transparency and sustainability. We can examine companies by industry and size, and perhaps most importantly, and in the spirit of the program, we can highlight industry leaders. There are many companies in construction and basic materials who have excellent sustainability programs, and can serve as business models within the industry.
Our hope is that companies will start taking a more “top down”, integrated and long term view, ultimately providing both internal and external benefits to larger groups of stakeholders in the future.
Barbara Kimmel, Executive Director, Trust Across America
Barbara Kimmel | August 23rd, 2010
Great article. I couldn’t agree more. We are organizational psychologists who work with companies on the culture and leadership issues pertaining to succeeding with sustainability. It is fascinating work and a much-neglected area of concern.
Kathy Miller Perkins | August 23rd, 2010
I agree with your statements Tim, particularly about the people, and you cite strong company examples as well. Our society needs to learn and grow from others’ practices in order to avoid unnecessary legislation, which has been the practice of other countries in order to force compliance. An organic, practical approach to sustainability will further action, foster new ideas, better efficiencies, an overall improved culture and a better world for our children’s children.
Barbara, you are too right about top down approach but as you stated we are all responsible for the benefits to all our stakeholders.
Richard Manning | August 23rd, 2010