What is Sustainability?
Sustainability is a holistic, system-based approach that produces positive business, social and environmental results today and into the future. Sustainability integrates practices that enable organizations to do well for their stakeholders by doing good for society and the natural environment. Companies’ committed to sustainability believe it’s both possible and desirable to promote the health and wellbeing of people and the planet while also generating a profit.
What Can Sustainable Practices Do for Businesses?
Sustainable practices are being used successfully by leading business organizations to manage cost, compliance and competitiveness challenges. Companies report that sustainable practices support corporate policies and programs to meet objectives including:
- Ensuring long-term access to critical natural resources
- Promoting the health, safety and education of tomorrow’s global workforce
- Contributing to vibrant, resilient global economies and markets
- Spurring innovation
- Reducing production, transportation and compliance costs
- Meeting customer expectations for quality and sustainable practices
- Delivering long-term value to stakeholders
- Building brand value and reputation
What are Some Examples of Sustainable Practice Being Used by Companies?
Thousands of companies around the world have implemented a broad range of sustainable business practices, including:
- McDonald’s spearheaded a global packaging scorecard to minimize packaging weight, maximize use of recycled materials, give preference for renewable materials, minimize harmful chemicals used in production, reduce greenhouse gas emissions, and maximize “end-of-use” options.
- As part of its enterprise-wide sustainability initiative, Wal-Mart challenged its electronics suppliers to submit ideas that reduced a product’s environmental impact through packaging that met the goal of “reduce, reuse, recycle.”
- HP responded with a multi-pronged initiative for its newest laptop computer, which is packaged in a carrying bag made of 100% recycled fabric (with the exception of the bag’s buckle, strap and zipper). Overall, the packaging for HP’s new laptop is 97% less than that of typical laptops.
- Even though it already buys 75% of its coffee from responsibly grown, ethically traded sources, Starbucks has committed to purchasing 100% of its coffee through ethical sourcing practices by 2015.
- Wal-Mart launched its Sustainability Index, requiring tier-one suppliers to submit information about their products’ content, environmental impacts and suppliers.
- Ryder’s driver fuel efficiency program uses internal benchmarking and financial incentives for vehicle operators to cut costs and reduce GHG emissions.
How Can Sustainable Practices be Incorporated into Existing Business Operations?
Sustainability is not achieved overnight. It is a combination of initiatives that represent a balance of cost and effectiveness. As a first step, conduct an audit to identify current costs in key areas such as power, water use, waste disposal, packaging, warehousing, transportation and facility maintenance. These areas typically highlight opportunities ranging from motion-detecting temperature and lighting technologies to targeted employee training in key sustainability topics. Initiatives should be prioritized according to the requirements and primary goals of the organization and implemented in a step-by-step process that allows each subsequent step to build on the previous ones. Perhaps the greatest – and most often overlooked – resources in this process are employees themselves, who are knowledgeable about the organization and eager to contribute to more sustainable operations.
How Does Sustainability Apply to the Supply Chain?
Sustainability, like quality, depends on each link in the supply chain. That dependency, combined with increasingly complex supply chains, makes sustainable supply chain management a challenge for many businesses. Despite those challenges, a number of corporate leaders have launched comprehensive programs that encourage more sustainable practices throughout the supply chain. Brand companies must balance the requirements they set for suppliers with access to critical supplies, the ability of the supplier to comply with corporate standards, the financial impact of such compliance, the supplier’s technical expertise in implementing the required changes, and the enterprise-wide result of any measures requested of suppliers.
