Bold goals: Authentic sustainability is more than green marketing
Frank O Smith, senior contributing editor (fosmith@thewritinggroup.com) -- Manufacturing Business Technology, 3/3/2009 1:18:00 PM
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Part of the problem with the
contradictions in sustainability findings
is there’s no clear business definition for what constitutes authentic sustainability. As seen in a recent report out of Boston-based AMR Research, “Sustainability appears in various shades of green.”
Often it has more to do with marketing and communications than real bottom-line results. That's why AMR has put forth its definition of authentic sustainability, one squarely at the “intersection” of four areas of focused activity:
• Societal, including traditional Corporate Social Responsibility (CSR) and marketing;
• Enterprise, focusing on operational process and business improvements around energy use and environmental concerns;
• Intra-organization, emphasizing internal product and process innovation; and
• Extra-organization, leveraging cooperative partnerships across the supply chain.
AMR also has articulated a model to help companies move along the maturity curve from mere regulatory compliance to strategic sustainability.
“Companies want to do the ‘green thing,’ but there is no ‘Sustainability for Dummies,’ ” says Stephen Stokes, VP of sustainability and green technology for AMR. “Corporate social responsibility around green initiatives is all well and good, but there is a much bigger issue. It’s not just about hugging trees. The smart organization recognizes the seamless connection between sustainability and energy efficiency and economics. Getting that right today is critical to bottom-line costs.”
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| Related reading: Survey reveals why recession hampers corporate green initiatives |
According to the report, “The age of mere regulatory compliance is over. Short-lived and project-based initiatives almost exclusively react to trends, typically taking place at the margins of organizational functions and priorities. “The emergence of authenticity in the sustainability space follows a more centralized, proactive, and holistic company engagement… harnessing creativity and innovation to deliver new products, services, and, in some cases, marketplaces,” the report states.
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| “The ultimate importance of a model is that it enables something as fuzzy as sustainability to become fact based.”—Stephen Stokes, VP of sustainability and green technology, AMR Research |
Benefits of such a holistic approach include increased brand equity, competitive advantage, stakeholder respect, and enhanced employee recruitment and retention. It requires bold goals and sustained commitment to ensure that the greening of the organization is woven deeply into how the business thinks, operates, and conducts business in the marketplace.
That’s why AMR seeks to make authentic sustainability a greater part of its practice.
“Though we’ve had a sustainability service for some time, development of the sustainability model broadens and deepens our commitment,” says Stokes. “It represents a new platform from which clients can drive business improvement and excellence.”
Acknowledging the evolving nature of its service, the authors do not offer conclusions in the report, but rather, outline these orientation points to consider:
• Do your homework. Avail yourself of the body of policy and regulations that impact your business.
• Align sustainability efforts with growth objectives. Identify opportunities for value creation across the supply chain, making it a strategic corporate objective.
• Focus on operational excellence and reliability. Begin with product development and extend through manufacturing and supply to cultivate innovation and creativity around sustainability.
• Develop a process and systems architecture. Integrate business processes and IT to achieve end-to-end supply chain visibility of risks and opportunities.
• Model your organization. Assess your current state and a benchmark for consistent future assessments and corporatewide communications.
“The ultimate importance of a model is that it enables something as fuzzy as sustainability to become fact based,” Stokes says. “It enables you to benchmark your performance, compare it to others, and start to monetize your endeavor. It’s not until you build a framework where you can put value on costs that you can begin to really measure the true benefits.”
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| The AMR Research sustainability model represents a new platform from which clients can drive business improvement and excellence. |
