The past year has seen a significant shift in eco awareness and the debate on climate change. In the world of business and finance, climate change has developed from a sidebar topic to a mainstream conversation. Accompanying climate change discussions are questions as to how to increase eco awareness in business and simultaneously see results in the bottom line.
A corporate sustainability plan is one way for growing businesses to drive efficiencies into existing business process and to create access to new opportunities. A comprehensive business sustainability program is a communication tool to your key business stakeholders that your company is responsive to change. But what information exactly needs to be communicated and to which stakeholders?
The post, Using Sustainability Metrics to Drive Business Performance, Innovation and Stakeholder Satisfaction addresses key metrics used to tie sustainable business strategies to bottom line performance. One point mentioned is to measure things that add value to organizational decisions. For businesses just getting on board with sustainable business strategies, what might those “things” be? As mentioned in our sustainability consulting, following are areas within the business that not only add value from a sustainability perspective but also to bottom line performance.
1. Company has a genuine commitment to sustainability by management at the highest level, with sustainability principles present in core values and business strategies.
2. Sustainability strategies are cascaded down through management and are incorporated into organizational and individual performance goals.
3. Employees are informed, motivated, and actively engaged in the company’s sustainability program.
4. Key Performance Indicators (KPIs) for sustainability are fully integrated into the business processes, corporate performance, and employee recognition.
5. Company has active dialog with key stakeholders on sustainability issues, including customer to understand how sustainability issues relate to different market segments.
6. Product stewardship is integrated into the development process, with production and procurement decision-making supporting more sustainable choices.
7. A Supply Chain Management strategy that aligns company and supplier performance targets to deliver a sustainable supply and stimulate product innovation.
8. Business risks and opportunities associated with sustainable development are well-understood and communicated to key stakeholders, especially investors.
9. Defined strategies to ensure business sustainability initiatives add value both to the company and community and to the business.
10. Transparent reporting on sustainability concepts and sensitive issues, with both positive and negative results.
At Taiga Company, we see the future of business sustainability going far beyond the implementation of individual sustainability concepts. Many organizations have already adapted their business models to capture value from sustainable development. The leaders of tomorrow will continue to push the edge of business sustainability to transform entire industry sectors. The right strategies and small business resources can help bridge your business into the future and the right metrics can help tie your sustainable business strategies to the bottom line.