Downtime Means Time for Sustainability
This year I couldn’t help but notice a trend. It’s been happening the past few years and I believe its meaning is significant. Our busiest time â the period when we get the most inquiries, the most demo requests, and even close the most sales â is when everyone else is on vacation. So, when other businesses are slowing down for summer-time, winter holidays or even at Easter spring break â sustainability managers finally have the time, and freedom, to make some headway in finding better ways to reach their goals.
A Hiatus from the Inbox
The most plausible theory is that the everyday pressures and time and budget restraints prevent sustainability managers from exploring and implementing new activities. And while this is not all that surprising, the reality that sustainability is still low on the agendas of so many companies can be frustrating for those of us that have witnessed the business-changing impacts and cost-savings that can be obtained through these initiatives.
From Anecdotes to Empirical ROI
The anecdotal evidence that sustainability, in all its many forms, directly and positively impacts the bottom line is increasing every day; however, there is still not enough (much-desired) data to statistically model the resulting dollar-for-dollar return that sustainability brings. The evidence is there â in individual stories – but the work is still so young that the longer term profitability as a result of these activities is still only proven in anecdotes.
Our modelling work shows that almost every time carbon is reduced in a productâs lifecycle, cost is also reduced. We consider the term âlifecycle analysisâ or even âcarbon footprintingâ to be almost synonymous with âsupply chain efficiencyâ and âcost reductionâ. Itâs clear, however, that this is not everyoneâs thinkingâŚyet!
The Lone Sustainability Champ
Itâs been our experience that even huge multi-national companies are only dedicating one person, or even just a part-time person, to their sustainability work. Thatâs not to say that their marketing and PR departments arenât busy with this topic, but their actual operational investment is limited. Is it because theyâre not convinced of the profitability of the work? Do they still relate âsustainabilityâ to âtree-huggingâ? Or are companies waiting for a mandate – either from government or a client? Whatever the reason, there are millions, if not billions, of dollars being wasted in supply chains everywhere, resulting in loss of profit and unnecessary high environmental impacts.
Lower environmental impacts means less raw materials needed, more efficient transportation supply lines and stronger relationships with suppliers resulting in less volatility in supply, quality, and costs. It also means stronger relationships with clients resulting in more favorable customer status, and stronger relationships with communities and other stakeholders resulting in higher customer loyalty, higher employee productivity, and more collaborative relationships with even competitors. Who wouldnât want all those things? And yet, interest in our product sustainability work bumps up when thereâs downtime for everyone else.
Invest in Your Sustainability Chief
So we hugely applaud the sustainability managers of every stripe who get more and more âcompany goalsâ dumped in their laps and who, as one told us recently, can âonly deal with the real sustainability issues when heâs in his hotel room at the end of a long day of meetings about everything else.”
I therefore challenge CEOs and business leaders to invest in your sustainability chiefs. Thereâs money to be made – potentially a lot of money. Donât just put your money into market research about consumersâ interests in sustainability. Give your sustainability champions the time, resources, and budgets to implement cost-saving programs that will directly benefit your bottom line over the long term.
Sara Pax is the president of Bluehorse Associates, a developer of environmental sustainability metrics solutions specialized in the food and beverages industry that includes the web-based, lifecycle assessment and product carbon footprinting tool Carbonostics. www.carbonostics.com
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