Sustainability is a very wide subject that needs leaders to align their strategies around it. They need to understand how the natural and social system works and how their companies interact with them. Then they will need a framework to implement a strategic sustainable development that will guide their successful future.
The United Nations Brundtland Commission in 1987 defined sustainable development as “meeting the needs of the present without compromising the ability of future generations to meet their own social, economic and environmental needs worldwide.” Therefore sustainability is a about present and future needs, the commitment to leave a better world to the future generations.
But, why has it taken so much time to implement sustainability strategies and actions for businesses and governments?
The answer is the impact’s delay of our actions. For years there has been a sensation that nothing was happening and that we could continue doing as before. This sensation changes if we see from a bird eye’s perspective the last 50 years…
So how does the future look like? According to The Natural Step we are in a funnel and the possibilities to change this trend are getting smaller (less natural resources, greater impacts on current environment and social conditions...)
We know there a lot of reasons why sustainability matters. The question is how the business leader has to focus and implement a global sustainability strategy.
Benefits
There are very important business benefits as Bob Willard stresses of applying a sustainability strategy in your organization:
1. Easier hiring & retention of top talent
2. Increased employee productivity
3. Reduced manufacturing and commercial expenses
4. Increased revenues and market share
5. Reduced risk, easier financing
So, what you need to incorporate sustainability strategically in your organization? You need a robust and tested framework.
Steps of the Framework for Strategic Sustainable Development, FSDD.
1st) Understand how your company impacts the environment, society and economy in the whole System. It is not only about climate change, sustainability embrace a lot of concepts. Everything is connected! No more reductionism! you need Systems Thinking"
2nd Embrace the sustainability principles that make the System work and that are currently violated by our society as constraints in your company’s growth.
3rd Align your strategy with the sustainability vision. In this point leadership and ecological coaching plays an important role to involve all the company resources in this effort and setting up the strategic goals.
4th Design and implement actions that allows the organization to step by step by selecting those actions that are financially viable, guide the company to achieve its vision and build competitive advantages against the competitors.
5th Monitor the progress of the strategic goals and actions designed by the company’s dashboard or any other strategy implementation tool or environmental management system as ISO 14001.
One final and most important step: lead your company’s journey to be part of the solution. It does not matter how big the impact is, is the example and corporate citizenship you set up. You will realise how powerful this message can be within your organization and how your employees embrace it bringing new solutions and ways to reduce your impacts and satisfy your customers.
Opportunities and challenges
Out of there, there are opportunities and challenges you have to face:
- Stakeholders pressure (more information about GHG emissions and sustainability commitment)
- Upcoming National and International regulation
- Competitive advantages from innovative products/services
- Earth resources limitation and continuous increase in scarce resources prices your company depend on.
- Young professional's expectations about what company they want to work for
All of them are opportunities for leaders to include sustainability principles to their agendas and be the pioneers in their sectors applying the strategic sustainable development.
Wal-Mart, Ikea, Lafarge or Interface are examples of big corporations that have put sustainability in their agendas and that are gaining the customers trust and market share to continue creating new ways to operate in a System with limited resources where everything is connected. You have the chance to start a new journey that will make you better as a business meanwhile a good neighbour.
Sustainability key factors:
Do not forget, some of the key factors for applying sustainability successfully!
- It is a progressive effort. You do not have to be carbon neutral in one day! Sustainability is about doing the business we do by applying sustainable actions that improve our services, keep us on green numbers and constantly guide us to our sustainability vision.
- It is not a question of implement some independent actions, it is required a complete understanding of the company’s function within the environment, society and economy. This understanding will help us to draw the whole picture and design the most efficient way to achieve it (GHG inventory, energy efficiency, green building, …)
- It must be included in the company’s vision
- It offers important benefits and also requires efforts, investments and organization involvement
