With sustainability becoming increasingly operational, managing it as a cyclical business strategy istrash key.
Businesses are at different stages in operationalizing sustainability. They need practical tools and approaches to successfully manage the technical evolution required, with a sustainable business model that recognizes that the financial health of the firm is dependent upon the environmental and social health of our planet. As such, sustainability is the means by which performance goals are achieved.
During the past decade, we have regularly benchmarked some of the world’s largest companies, including Caterpillar and Unilever. From our experience, we’ve learned that companies start the sustainability path by focusing on the potential to reduce their environmental burdens from the extraction of raw materials, the production of goods, the use of those goods and management of the resulting wastes. The champion companies evolve industrial processes that go beyond waste reduction and eco-efficiency to mimic the cyclical ecosystem processes of the natural world, where waste is fuel or food. They also use a new accounting ledger that has a large intangible dimension—capturing the knowledge, skills and motivation of employees and the company’s external relationships.
Getting on a path to sustainability requires business strategy that includes useful tools at various stages. The path involves two cycles that lead to continuous, sustainable improvement while also having a positive effect on a company’s bottom line.
See full Article.
Posts
