Sunday, November 3, 2013

Humpty Dumpty and the Elusive Business Case for Sustainability



“Business is the only mechanism on the planet today powerful enough to produce the changes necessary to reverse global environmental and social degradation.”
                                                                                                            ~Paul Hawken

We are at a crossroads in our society, and it seems that businesses are holding the cards. It is businesses that will determine the fate of the world as we know it, and whether our manufactured need for the latest and greatest tech gadget every six months will outweigh our need for clean air, potable water and actual food.

For the past six years, I have been managing UnCommon Sense, a leadership and peer support program in sustainable operations. We work with businesses and organizations over the course of two years to implement, track and quantify the successes and challenges of sustainability initiatives, and to make sustainability systemic in their operations. The program has not been given a chance to run at full capacity, and as such I am spending this year deconstructing UnCommon Sense and putting it back together again (Wanted: all the king’s horses and all the king’s men). There are some major program improvements we need to put in place, one of the primary enhancements being a user-friendly, simple and consistent way to track metrics and quantify the business case for sustainability.

Regardless, we’ve had some pretty awesome successes with 56 businesses over the 8 years the program has been running. Results of course vary, yet without fail participants have saved money, reduced their waste stream, reduced energy use, increased employee retention and/or satisfaction, shifted to more responsible purchasing practices, streamlined their transportation needs, reduced their overall carbon footprint, or any combination thereof.

It seems like a pretty clean argument. If you use your resources more efficiently, it will cost you less and you will need less of them. It will save you money. Nike’s doing it, and so is Patagonia. Heck, even WalMart is “doing it”. So then, why is it so hard to get businesses and organizations to commit to sustainability? Why is there such a disconnect between our short-term thinking and the long-term benefits of sustainability (and the long-term ramifications of our current trajectory)?

After six years of recruiting and working with businesses in UnCommon Sense, I have a fairly well rounded list of reasons why organizations don’t/can’t/won’t commit. “We’re too busy.” “We don’t have any staff to take this on.” “It’s too expensive.” “Yeah, it’s something we’ve been meaning to do but we just can’t right now. Maybe next year…”

Out of curiosity, I decided to do a Google search on “why is it so hard to get businesses to commit to sustainability?” and stumbled across The Top 10 Reasons why Businesses Aren’t More Sustainable.

Top 10 hurdles for business sustainability in 2011
1.        There are too many metrics that claim to measure sustainability—and they’re too confusing.
2.        Government policies need to incent outcomes and be more clearly connected to sustainability.
3.        Consumers do not consistently factor sustainability into their purchase decisions.
4.        Companies do not know how best to motivate employees to undertake sustainability initiatives.
5.        Sustainability still does not fit neatly into the business case.
6.        Companies have difficulty discriminating between the most important opportunities and threats on the horizon.
7.        Organizations have trouble communicating their good deeds credibly, and avoid being perceived as greenwashing.
8.        Better guidelines are needed for engaging key stakeholders, such as aboriginal communities.
9.        There is no common set of rules for sourcing sustainably.
10.     Those companies that try leading the sustainability frontier often end up losing.

This article was from 2011, and all 10 reasons are still relevant today. One key point is in dire need of attention and change: “Many people demand cleaner energy but refuse, for example, to allow windmills in their community. How can we help consumers make informed tradeoffs when it comes to sustainability?” Indeed, how can we entice people to put their money where their mouths are?

I went on a search to find the 2013 version, and instead came across Ten Steps to Sustainable Business in 2013, a follow up from the 2011 article that provides a sort of roadmap forward. The common themes are communication, collaboration, and culture change.


1.     Create smart, integrated public policy
2.     Engage value chain members, including industry and NGO partners.
3.     Build a national dialogue on responsible consumption.
4.     Create organizational structures that support sustainability.
5.     Embed sustainability in corporate culture.
6.     Provide clear and equitable directives regarding Aboriginal rights and entitlements.
7.     Create conditions that support sustainability-related innovation.
8.     Incorporate a social license to operate into business strategy.
9.     Prepare organizations and society to mitigate and adapt to climate change
10. Lessen the burden of sustainability reporting.


This is all well and good, but how do we actually make it happen? How do we jump those hurdles and implement those 10 steps above, change our culture from one of disregard to one of accountability and collaboration? The short answer is, the same way you eat an elephant. One bite at a time.