Build Project Pipeline to Lower Target Risk

In recent years, employees at large multinational corporations have worked diligently to advance the sustainability agenda. Yet, despite their best efforts, many corporate greening initiatives have deployed a surprisingly small number of projects. To truly make a difference, we need to transition from treating sustainability as a mere "bolt-on" to making it an integrated way of doing business.?

To achieve the scale and profitability necessary for a sustainable future, we must broaden the scope of green initiatives to involve all employees, at every level of the organization. It's not enough for employees to understand the importance of sustainability; they must also be equipped to translate environmental science into practical strategies that their companies can implement and profit from.?

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Outline Business Case??

Daniel C. Esty and P.J. Simmons underscore the significance of framing green initiatives in the context of business value, as opposed to regarding them merely as acts of philanthropy or corporate social responsibility, in their book "The Green to Gold Business Playbook." They shed light on the four primary advantages that companies can attain through sustainable practices: 1. Risk Reduction, 2. Cost Savings, 3. Revenue Growth, and 4. Enhanced Brand and Intangible Value.?

More and more, technology is providing welcome assistance to sustainability teams in project identification and business case development. A culmination of technologies notably cloud computing, software automation, and artificial intelligence are shifting sustainability projects from company cost centers to profit generators. As an example, AI sustainability project management software app, OrbAid, was able to improve a Fortune 100’s profits by $2M, while identifying 100+ projects that would reduce 100 metric tons of greenhouse gas (GHG) emissions.???

“The emergence of exponential technologies and new mindsets allows companies to chase these lofty goals practically without dragging down financials. The virtuous cycle need not be a cost center,” stresses Corey Glickman and Jeff Kavanaugh in Practical Sustainability- Circular Commerce, Smarter Spaces, and Happier Humans.??

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Expand Project Pipeline?

Regrettably, the sustainability project ideas generated so far address only a fraction of the sustainability requirements necessary to fulfill customer commitments, meet government regulations, and align with science-based target GHG emissions reductions.??

As it stands every one of the world’s two-thousand largest publicly traded companies has a chasm between their committed GHG emissions reduction targets and identified projects.?

To address this gap, we must move from handfuls to hundreds of sustainability projects. John Elkington, in his book "Green Swans," argues that business leaders should embrace "10x thinking," aiming for at least tenfold improvements in sustainability metrics. This ambitious approach is what's needed to make meaningful progress in sustainability.?

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Form Project Portfolios?

Leaders today need practical projects that yield tangible business and environmental benefits. This approach emphasizes the importance of developing a portfolio of small to large-scale, profitable projects rather than relying solely on a limited number of large-scale projects with a standalone return on investment (ROI). While an individual project may not meet the required corporate ROI threshold, a portfolio of similar projects can collectively meet both financial and environmental goals.?

The often-overlooked small-scale sustainability projects are not the glamorous initiatives that typically feature in annual sustainability reports. Instead, they are practical endeavors, such as fixing a leaky bathroom sink. A seemingly small project like this not only improves a company's profits by saving $200 a year but also contributes to the planet's health by conserving 1,000 gallons of water annually.?

Consider a large multinational corporation with 100 facilities, each housing ten sinks. This seemingly minor project, when multiplied across the organization, results in $200K in increased profits for the company and conserves 1 million gallons of water, contributing to the global effort to protect our environment.?

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Scale Greener Profits??

The key to making significant progress on sustainability lies in adopting a holistic approach that integrates sustainability into every aspect of an organization's operations. By expanding the green tent to involve all employees and focusing on practical projects that deliver both financial and environmental benefits, businesses can build and expand a robust project pipeline that lowers the risk of failing to meet sustainability targets. Ultimately it is not just the responsibility of leaders, but all our responsibility to embrace 10x thinking and work together to create more sustainable and prosperous companies and future for our planet.?