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PREVIOUS MONTHS: February 2010
SUSTAINABILITY AS A COMPETITIVE ADVANTAGE
It may be a generalisation - but in my case it's true ... my accent should tell you straight away that, to put it diplomatically, I am commercially aware. This means throughout my extensive career I have consistently been pushing the commercial boundaries of the organisations I've worked with. This is one of the two main reasons I am interested in sustainability (the other main reason being the moral imperative - what sort of world will my children and your children inherit and what impact will this have on them?).
The fact is: sustainability isn't a fashion. It isn't something that's going to go away. It's something that's going to become far more important and noticeable as time goes on. Sustainability is set to become a corporate necessity.
- 57% of private sector managers expect employees interest in sustainability to impact their organisation.
- 37% of companies are highlighting sustainability initiatives in recruiting.
- 57% or companies are highlighting sustainability initiatives in branding.
- 3:1 is the ratio of managers involved in sustainability who cited "outdated mental models" as a roadblock compared to "not persuaded by the business case".
What does this mean?
It means some companies are being left behind while others are gaining ground. This means new services / products, ner markets, new market share based on the loyalty of ethics.
True, legislation and cost pressures will force the lingering organisations to change their ways. Yet in the mean time those who have already started along the road of organised sustainability have already begun to reap the rewards. The thing is, where as legislation and cost pressures will most definitely be on their way, the most noticeable area of growth at present is in consumer expectation - and their buying power is starting to shift. Consumers largely expect the companies they buy from and deal with to have a sense of responsibility. This is an increasing expectation. The trouble with this is that big expectations need to be met in order to avoid big disappointments. People don't want to be disappointed.
This big and increasing expectation will not be met by ignoring the gathering momentum. It will not be met by sheltering behind those "outdated mental models". It will only be met by the visible display of leadership and by an ethical stance that pins the colours to the proverbial mast and firmly displays an ethical sense of responsibility.
This is what people want to see. And to be honest, this is what your own staff want to see. It's human nature to want to be associated with success. It's human nature to want to be associated with something perceived as good and worthwhile. Think about it.
And from a bottom line hard nosed business point of view, nothing speaks louder than profit. Quite apart from markets and market share, the one area that will always erode profitability is uncontrolled costs. Sustainability helps to control costs.
2010-2012 is likely to see massive increases in energy and transport costs. 2010-2012 is likely to see the start of massive disruption in the supply of some basic goods as areas of global difficulty start to make themselves felt.
None of this is going to disappear. None of this will just impact someone else. This is about to happen and business will be at the forefront of change. And the change is starting to happen.
People in business are beginning to understand the concept of sustainable commercial advantage. They are serious about making a profit. They are serious about securing this profit over a prolonged period of time and, take my word for it, they are starting to be serious about sustainable development. This isn't just about the environment. The environment is important enough, but sustainable development also encompasses your business relationships, your suppliers, your use of energy and other services / products, how you perceive the world around you. There's a lot more to sustainability than the environment ... but the environment is a good place to start.
We have to start somewhere are there's nothing like a burning platform to focus the attention. A world of opportunity is opening up.
Regards
www.A-Sustainable.co.uk creating sustainable commercial advantage
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