Sustainability: The New Competitive Advantage in Business

In today's business landscape, sustainability has evolved from a nice-to-have to a crucial driver of market success. Traditionally, businesses have focused on maximizing shareholder returns as their primary goal. However, mounting evidence suggests that companies fixated solely on shareholder value often falter over the long term.

Instead, the essence of a business should center around creating positive change in the community - The very core and purpose of its existence.

The Imperative of Sustainability

The urgency of integrating sustainability into business operations has never been clearer. Our planet faces unprecedented environmental challenges: lakes are drying up, oceans are laden with pollution, and the pervasive spread of microplastics is so severe that the average person could be ingesting the equivalent of a credit card's worth of plastic every week! Those who consume seafood might ingest even more!

This dire situation underscores why businesses must adopt sustainable practices—not just for environmental reasons, but as a strategic long term imperative.

The Triad of Corporate Sustainability

There are three pivotal aspects of corporate sustainability:

1. Internal Practices: This includes adopting green buildings, conserving and recycling water, and other practices that a company can directly control.
2. Supply Chain Influence: Companies must also ensure that their partners and suppliers adhere to sustainable practices, leveraging their influence to propagate environmental stewardship throughout their networks. Say no to suppliers who don't! At the minimum, question it and make it part of their selection criterion!
3. Product Lifecycle and Circular Economy: The final aspect involves the products themselves—how they are used, reused, and recycled by consumers. This area is the most challenging to control but is critical for reducing environmental impact. Make it part of every proposal, leaders must question this aspect and think hard with their teams to design it in the lifecycle.

Remarkably, research indicates that 90% of today's waste comes from this third category listed above. For example, for a company the major ecological impacts are not due to its direct operations or those of its partners, but from how its products are disposed of and recycled.

The Role of Governments, Companies, and Individuals

Addressing these challenges requires a concerted effort from all sectors of society. Governments need to implement regulations and incentives to foster recycling and sustainability. Companies, on their part, need to innovate and integrate sustainability into their business models and product designs.

Perhaps most importantly, individuals must recognize their environmental impact and adopt more sustainable practices in their daily lives.

So next time you think of buying a new phone, consider what happens to the one you use. Let's work with companies that have a clear answer to this! Change starts small, but I strongly believe it starts with YOU.

Business Opportunities in Sustainability

For businesses, sustainability is not just about corporate responsibility—it's a strategic advantage that can differentiate a brand in a competitive market. By implementing a sustainability "tax" or premium on products, companies can fund recycling initiatives and support the circular economy, thus not only mitigating their environmental impact but also enhancing their market position.

As businesses face increasing pressure from consumers, regulators, and investors to demonstrate sustainability, those that can authentically integrate environmental stewardship into their strategies are likely to thrive. Sustainability is no longer just an ethical choice; it's a business imperative that aligns economic success with the well-being of the planet.

References:

1. https://edition.cnn.com/2019/06/11/health/microplastics-ingestion-wwf-study-scn-intl/index.html