Other businesses are having difficulty putting corporate sustainability policies into practice for everyone like Unilever and Wal-Mart that has done so successfully. To improve sustainable practices, each organization must do a thorough evaluation of its strategy, operations, and goals.
Although there is no one way to implement sustainability, there are essential stages that can aid in its successful integration into a corporate strategy. These steps will be the main topic of this article, which will serve as a sort of road map for the formulation and execution of a business sustainability plan.
Before even developing a roadmap, it is essential to increase C-suite knowledge of the advantages of sustainability. As more CEOs become aware of the advantages of embracing corporate sustainability, there has been some progress on this subject. According to the 2012 Sustainability and Innovation Global Executive Study by MIT Sloan, 48% of CEOs said they had altered their business model to include sustainability; of those, 46% said sustainability improved their bottom line. However, more than half of the 600 organizations CERES surveyed for The Road to 2020 Report last year still fell into the Tier 4 “Starting” category in their Roadmap for Sustainability.
In Tier 4, CERES lists businesses that are just starting to understand sustainability and need a lot of work to incorporate it into their overall corporate accountability systems.
A comprehensive grasp of the problems and effects, as well as a practical knowledge of the business’s operations, are necessary for corporate sustainability. The two must be joined through a series of practical activities for sustainability to be ingrained.
1. Recognize the value of sustainability to the business.
For each department within the business, it is crucial to first define sustainability and pinpoint its advantages. Sustainability is becoming a more important factor in many kinds of decisions, from making investments to creating new goods or services or altering procurement procedures. One business that prioritizes sustainability in its investment decisions is Coca-Cola. Water sustainability is increasingly taken into account as a major element when deciding where to build new manufacturing facilities. The Coca-Cola Great Britain president, Sanjay Guha, claims that “potential markets and simplicity of distribution were once the only important concerns. The long-term water supply is now in focus.
Finding the issues with the most impact and relevance for the business and stakeholders is crucial to determine where sustainability efforts inside a firm should be focused.
2. Activate stakeholders
A company’s impact on stakeholders might change depending on its line of operation. Typically, businesses maintain tight relationships and ongoing communication with the most powerful groups. Engagement, however, can take place on various levels and must meet the expectations of both parties. Different engagement levels and techniques provide advantages for businesses and stakeholders alike and can lead to more sustainable business practices. “Allowing stakeholders to honestly critique us encourages us to enhance our programs and helps us strengthen our thought leadership platforms,” says Bonnie Nixon, Director of Environmental Sustainability at Hewlett Packard. Similar to this, Procter & Gamble has benefited from its interactions with local communities by discovering new uses for its waste products.
To meet the company’s waste reduction goals, Kraft Foods has devised a model where employees contribute with ideas and workable plans to minimize waste.
3. Establish expectations and goals
After the most important environmental, social, and governance issues have been identified and the methods of engagement for each stakeholder group have been established, efforts must concentrate on lowering the risks and seizing the opportunities associated with these issues in line with sustainable practices. Commitments and objectives for sustainability must be set, whether they are motivated by cost savings, innovation, or improved financial performance.
The majority of Wal-sustainability Mart’s commitments and objectives center on the usage of renewable energy and the adoption of energy efficiency. Initiatives in these areas have made Wal-Mart the largest on-site green electricity generator in the United States and have saved the company more than USD 500 million annually. United Airlines is another illustration. Through the involvement of all of its suppliers in its Sustainable Supply Chain project, the airline hopes to lessen the impact it has on the environment.
Small firms make goals and pledges through their range of action, whereas corporations like Walmart and United Airlines aim for a comprehensive transformation of their organizations. The majority of initiatives concentrate on cutting costs associated with energy use, waste management, and travel patterns as well as community service initiatives including neighborhood improvement projects and volunteer drives.
4. Set up procedures and systems.
Following the setting of the objectives, each initiative’s implementation must be governed by precise systems and thorough procedures. Processes and rules that are already in place need to be taken into account throughout the design process, and cross-functional cooperation should be promoted. Gaining executive support is essential at this point. Additionally, it is a good idea to choose an internal sustainability champion who will serve as the primary force behind sustainability as well as create an effective strategy for staff participation. In the 2012 Report on Sustainability Leaders by VOX Global and Net Impact Berkeley, 78% of respondents indicated that senior management played a significant role in the adoption of sustainability. The primary drivers of success, according to 81% of respondents, were their coworkers throughout the entire firm.
The Sustainable Living Plan for Unilever was introduced in 2010. This ten-year sustainability strategy has made significant progress in its first two years under the direction of its CEO Paul Polman. Unilever is using its broad portfolio of brands to address specific social concerns, invest in sustainable technology, and alter customer behavior as part of its comprehensive overall sustainability strategy. Additionally, Unilever has succeeded in successfully involving external actors and integrating sustainability throughout the entire organization.
The company’s management structure also includes a Sustainable Living Plan Steering Team, the Sustainable Development Group, a group of outside experts in corporate responsibility and sustainability, and the introduction of the “Small Actions, Big Difference Budget,” which funds employees’ ideas based on environmental benefit and financial return.
5. Monitor progress, share actions, and fulfill commitments
Last but not least, it’s critical to establish a method for tracking progress toward each objective. The ability to identify areas for improvement and to collect pertinent data to monitor progress will result from the definition of key performance indicators to achieve the defined goals. Metrics and indicators are also crucial to the company’s reporting and communication processes. The availability of data internally helps to prioritize challenges and activities and encourage employee engagement in sustainability. Externally, gathering data is essential for an accountability plan, to meet the expectations and interests of stakeholders, and to abide by reporting requirements.
The creation of indicators has already been embraced by businesses that follow the Global Reporting Initiative rules. Along with these recommendations, the Sustainability Accounting Standards Board is now developing frameworks that will standardize sustainability key indicators for each sector. Alongside these initiatives, businesses are developing their methods for evaluating performance, such as Wal-Sustainability Mart’s Scorecards, which, among other things, evaluates suppliers according to their environmental footprint and aids in the evaluation of Wal performance.Wal’sIn conclusion, Corporate sustainability ultimately needs to change by the business’s maturity and willingness to view sustainability as a strategic opportunity. These measures are just the start of a process that, in time, will enable businesses to convert their whole business plans to sustainable ones.
