If you mention ‘sustainability’ many people will assume you’re about to mention ‘reduce, reuse, recycle’, climate change or wind turbines. In particular sectors, you may already be thinking in terms of increasing demands of compliance, restrictions and costs. To the business owner, ‘sustainability’ typically feels like a burden.
At SQEP, we see sustainability as not only critical to business continuity, but as an enabler to future growth and success.
First, a bit of history…
In 1983, the Brundtland Commission was founded by the United Nations with the aim of aligning countries towards ‘sustainable development’. Gro Harlem Brundtland, former Prime Minister of Norway (pictured), was the commission’s chairperson. The commission was dissolved in 1987 after publishing its findings in ‘Our Common Future’, more commonly known as ‘The Brundtland Report’. It’s this report that gave rise to the term ‘sustainable development’, and the definition of ‘sustainability’ as:
“Meeting the needs of the present without compromising the ability of future generations to meet their needs.”
OK, let’s bring that down to something a little more actionable in a business context:
“A sustainable business is one that continues to exist by protecting the needs of People, Planet and Profit…in balance.”
Profit is, for businesses, quite literally the bottom line. Without it, you won’t have a business for long. It’s about ‘economic wellbeing’ – revenue growth, employment, financial security. Sustainable business means that profit isn’t protected at the expense of the people it employs or affects, or the demand it impresses upon the planet. Sustainability of profit is reliant on, among other things, demand, efficiency, customer service and sales pipeline.
‘People’ needs include social welfare, equality, diversity, ethical behaviour, health and safety.
Planet needs are what we think of when it comes to being ‘environmentally friendly’; resource use, waste production, emissions to air, land and water, protecting ecosystems and biodiversity, and promoting planetary wellbeing.
The unsustainable business
Let’s consider these three priorities – often referred to as the triple bottom line – as three sides of an equilateral triangle. If any one of these sides isn’t protected, the triangle collapses.
Businesses are used to being focused on profit. Failure to protect the money results in heightened risk, stagnation, lack of investment and ultimately, demise. This is clearly unsustainable.
But continuity of profitability will be affected by lack of attention to the other three sides of the triangle.
Without investing in and looking after its people, a business gets high staff turnover, poor reputation as an employer, lower efficiency, less commitment and attention to detail, increased illness, lower productivity, poorer customer experience and weak competitive positioning. This is unsustainable. Profits dry up, and the business fails.
In practical terms, failure to watch your impact on the planet can mean your business is non-compliant, excessively wasteful and sliding to obsolescence. Reliance on unsustainable resources in the supply chain can also affect the business’s future continuity – that could be a finite resource or resources that are likely to be legislated out of viable use. This is unsustainable. Profits dry up, and the business fails.
What you need is a more holistic approach
The point being that in the modern business world, sustainability considerations are interdependent – and directly (and increasingly) related to success. You can tackle each independently, but that often negatively affects your ability to protect the others. What you need is a more holistic approach that ingrains sustainability at a cultural level within, and considers the market context around, your business.
Do that, and the opportunities for growth and success are hugely increased.
Here’s how…
Establish market leadership: sustainability is not just a challenge for businesses – it’s relevant to each of us individually. We are all asking questions of ourselves daily around the ethics of our consumption, use of AI (which has an astronomic carbon footprint), diligence in recycling, miles we drive, car we choose, meat we eat, milk we drink and so on. That doesn’t mean people or businesses can stop buying – they just need ways that are sustainable. The momentum is in one direction, towards sustainability, because the alternative is “profits dry up, and the planet fails”. So, the opportunity is there for those quick enough to adapt and commit.
Product durability, recyclability and repairability: Designing for sustainability often drives innovation in product, service, technology or supply chain. ‘Right to Repair’ legislation promotes the repair of devices instead of disposal, fair pricing for OEM parts, and outlaws software that limits independent repair. Legislation like this is becoming common globally. Again, that’s the momentum of travel, so why wait to be part of the inevitable?
Reduce your demand: invest in basic resource efficiencies such as energy, but also water and gas. Assess your supply chain to reduce waste of materials, non-recyclable disposal and distance-to-customer. These changes deliver cumulative cost benefits.
Proactive compliance: most UK government bids are now assessed at least in part on the basis of sustainability and compliance, and many other businesses are following suit. Be proactive in adopting sustainable practices – it’s easier than being forced to catch up later anyway, and helps you stay ahead of future evolving and more stringent regulations.
Mitigate risk in the supply chain: prioritise renewable or abundant resources to mitigate risk to price or supply volatility in the future.
Be transparent and vocal: share your efforts and commitment. Audiences – customers, suppliers, talent – will understand that you are ‘on a journey’, but by engaging them in that progress, you will demonstrate that you follow through on your commitment. You will be a brand that people want to be associated with.
Thank you for reading. We hope you found this interesting and useful, but let us know! How are you planning to thrive in a sustainability-focused future?
SQEP’s sustainability experts are able to support you on your sustainability journey, wherever you are kicking off from. We will analyse opportunities and devise holistic pathways that strengthen all three sides of your sustainability triangle, delivering happier people, healthier profits and a brighter future for everyone.
For a successful, sustainable future, contact SQEP today.
Be Inspired: United Nation’s Sustainable Development Goals, Unilever, IKEA, Adidas, B-Corp.
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