What strategies can businesses employ (however big or small) to effectively integrate and embrace sustainability?
To uncover the best strategies for integrating sustainability in business, we put the call out to seek insights from experts across a variety of sectors.
Their advice ranges from investing in energy efficiency and engaging employees in sustainability initiatives to prioritising transparent, measurable practices, and building responsible supply chains.
These dynamic approaches show that no matter the size of the business, embracing sustainability can revolutionise operations, boost brand reputation, and drive incredible long-term success and resilience.
James Hancock
Managing Director and Co-Founder: mwah.
In many ways, we are anchored to short termism more than sustainability – in business, community, government, and society. We grapple with people’s attention, and that overtakes what is sustainable, additive, steady growth. We are drawn to immediate energy, without thinking through ideas, value creation and implications of growth at all costs.
In marketing and media, the concept of ESG gets a lot of airtime, and within that there is (rightly) an overweight focus on environment, then governance, and to a lesser degree, social factors.
To effectively integrate sustainability, there are two key strategies.
- Consistency in measurement and reporting – not a different set of data every period. In the people and culture space, with more traditional measurement patterns like engagement surveys, we see organisations change questions often, so reliability is reduced and no longitudinal measurement of people, culture or engagement is done. This reduces usefulness for boards, executives and other leaders in creating sustainability.
- Decision making that is built for sustainability, not rewarded for short termism – a delicate balance between performance today, and tomorrow. Future economic performance comes from yesterday’s strategies – often years down the track. So having that reflected in decision-making, and performance and reward systems, is critical.
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Simone Rennie
Co-Chief Executive Officer: Rennie
It is now widely recognised that integrating sustainability into business operations is critical for long-term success. An effective sustainability strategy should focus on opportunities and risks most material to the business. Building a fit-for-purpose strategy starts with top-down commitment from leadership, and alignment to core purpose and values. The strategy should be informed by an understanding of business ambition and goals, stakeholder expectations, and external drivers relevant to the business and industry. This will help to identify sustainability priorities – initiatives such as emissions, waste and water reduction, clean and efficient energy, ethical and sustainable sourcing, and circular economy are becoming common practices for many businesses.
It is also important to build a sustainable culture through employee engagement, education and KPIs, and to actively monitor, measure and report on progress – transparent disclosures and stakeholder engagement enhances business credibility and brand reputation. Importantly, there is no one-size-fits-all approach – integrating sustainability is a maturity journey over time and authenticity is key, particularly to avoid any potential claims of greenwashing.
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David Baggs
CEO, Technical Director and Co-Founder: Global GreenTag International Pty Ltd
The most important aspect relating to sustainability is not making general claims like “green” or indeed “sustainable” or “eco-friendly”. In not using such generic claims, you have the best chance of not falling foul of the ACCC’s environmental claims guidelines and Australian Consumer Law. It is best to clear, precise and honest in your claims, scientific with your data and make sure the third-party-verified evidence relating to any health or environmental claims is readily available to readers or viewers.
From a marketing and sales viewpoint, Third Party Certifications Declarations recognised by consumers, or industry associations like the Australian Green Building Council’s Green Star® green building rating tool, effectively create purchaser preferences for certified products over non-certified products.
Consumers and green professionals prefer to seek certified products as it makes purchasing or specifying them easier, helps them do their jobs better and eliminates compliance risks. Global GreenTagCertTM is an ACCC-approved certification mark and is recognised by all the major green building, interiors, and infrastructure rating tools as well as EarthCheck® in the tourism and hospitality sector, that works to help increase sales.
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Grace Young
Chief Innovation Officer: Wattwatchers – Digital Energy
I believe the most effective sustainability measures are those that are directly related to business success. An impact investor once told me that they looked to find a singular KPI that captured both the business and sustainability value.
In our business, our impact goal is to reduce emissions by enabling the transition to a renewable energy future. Regardless of whether our devices are employed to better manage household solar, or to increase energy productivity in a commercial setting (reducing costs and waste), every unit we ship contributes to this goal.
Finding ways to create shared value, in Kramer and Porter’s original definition, where you can achieve operational efficiencies and resilience through stronger engagement of your supply chain, is another great way to deliver on this idea.
Doing so also brings to bear the other benefits often associated with sustainability: reputation, staff engagement, and so on. But I would encourage businesses to look beyond these surface-level benefits and identify opportunities that simultaneously achieve real impact across the triple bottom-line.
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Bassam Saleem
Head of Marketing: Penrith Solar Centre
Integrating sustainability into business operations can lead to significant environmental and economic benefits. One effective strategy is investing in energy efficiency. Small businesses can start by adopting energy-saving technologies like LED lighting and energy-efficient appliances, while larger corporations can invest in advanced systems such as smart grids and energy management software. For instance, Google has made substantial investments in renewable energy, leading to their data centres becoming some of the most energy-efficient in the world. This commitment not only reduces their carbon footprint but also results in long-term cost savings.
Another key strategy is to focus on sustainable supply chain management. This involves selecting suppliers who adhere to environmental standards and ethical practices, ensuring that raw materials are sourced responsibly, and minimising waste and emissions throughout the supply chain. Patagonia exemplifies this approach with their commitment to a sustainable supply chain. They source materials from environmentally-responsible suppliers and provide transparency through their “Footprint Chronicles”, allowing customers to understand the environmental impact of each product.
Implementing waste reduction programs can also significantly lessen a business’s environmental footprint. Companies like Unilever have successfully achieved zero waste-to-landfill status across their factories by optimising processes and prioritising recycling and waste reduction.
Employee engagement and education are also crucial. Fostering a culture of environmental responsibility through training programs, workshops, and incentives can motivate a workforce to adopt sustainable practices. Microsoft, for example, has implemented a comprehensive sustainability training program for employees, encouraging them to embrace sustainable practices both at work and in their personal lives. This approach not only promotes a culture of sustainability within the company but also helps in driving overall environmental impact reduction. Integrating sustainability is not just beneficial for the planet but also enhances a company’s brand reputation and fosters customer loyalty, making it an essential component of modern business strategy.
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