|
Building sustainability thinking and sustainable design practices into a company's innovation processes is a powerful way to ensure future growth.
Benefits of sustainable design
A focus on sustainable design offers many benefits to companies.
Benefits vital to business survival:
§ massive new market opportunities in sustainable products and processes;
§ better understanding of customer’s issues and needs;
§ protection of dwindling raw material resources;
§ drives innovation, growth and strategy.
Benefits highly important for the future of the business:
§ stronger reputation and investor profile
§ improved value chain communication
§ lower production/business costs
§ improved products
Benefits that are useful to the future of the business:
§ consumer demand
§ compliance at lowest cost
If sustainable design is an attractive strategy for business, then there must be a clear business case for it.
In their book “Green to Gold” Estey and Winston pick out types of companies who need to be particularly interested in looking for competitive threat and competitive advantage in sustainability.
§ “High brand exposure. Companies with substantial goodwill and intangible value (including Coca-Cola, Procter & Gamble, and McDonald's) face special challenges.
§ Big environmental impact. Those in extractive industries or heavy manufacturing (BP, Exxon, Alcoa, and LaFarge, for example) must expect growing scrutiny.
§ Natural resource dependence. Companies that sell fish, food, and forest products (such as Cargill, Nestle, and International Paper) are likely to be on the front lines as society faces very real natural limits.
§ Current exposure to regulations. Environmental strategy questions play a particularly important role for those handling hazardous materials (DuPont) or operating in heavily regulated industries like utilities (AEP).
§ Increasing potential for regulation. Automakers and electronics producers (like Ford and Intel) are facing new challenges with European "takeback" laws that require manufacturers to handle the disposal of their products after their customers are done with them.
§ Competitive markets for talent. Companies in the service sector and the "new economy" (such as Citigroup, Intel, or Microsoft)—where primary assets can walk out the door if they are displeased with the company's values—must stay on top of environmental issues.
§ Low market power. Companies that rely on big customers that may start asking questions about environmental performance (most small to medium B2B companies) may be forced to raise their game. At the same time, those in highly competitive industries (such as small waste-handling businesses) will be hard pressed to step out in front of the competitors with initiatives that add costs or may not pay off for a long time.
§ Established environmental reputations. Those with problematic histories should expect extra scrutiny. Companies with good track records will get more leeway—and may benefit from goodwill in the marketplace”
From “Green to Gold”, D C Este and A S Winston
more>
|
