With unfulfilling commitments concluding in Copenhagen and follow-up conversations expected to continue into the immediate future, the world has become increasing aware of the impacts of global emissions have on climate change.  Despite varying views and beliefs, the long-term outcome of these discussions will almost certainly change the face business.

The rapid growth in global environmental awareness is not likely to bump the two primary objectives atop most corporate agendas.  Profitability and shareholder return still remain the ultimate drivers of business action; however, the growing understanding of business sustainability risk might be adding a new perspective for senior management.

Now more than ever many organizations are evaluating the cost and benefits of sustainable business changes.  By managing and planning a company’s operations to reduce environmental and social impacts, companies not only mitigate future risk but position their organization to capture opportunity going forward.

Although the potential cost of carbon is the most recognized risk, increasing demand for water resources is also a growing business risk.  According to a McKinsey report, ‘Charting our Water Future’, the demand for water resources is a growing business risk, a major economic threat, and a challenge for the sustainability of communities.

To unprepared organizations, the business risks of carbon, water, and climate change disclosure takes many forms:

•    Potential increase in operating cost

•    Potential increase in supply costs

•    Potential disruptions to supply or loss of supplier relationships

•    Potential loss of revenue or market share

•    Potential to business reputation

•    Potential inability to secure investment dollars or capital

Sustainable business action is no longer a slogan, marketing campaign, or a feel-good business activity.  Companies are beginning to see the true business risks and value opportunities of implementing corporate sustainability into their core business processes.   For your company, sustainability may provide you with a different perspective of the future.

Because most adults spend most of their waking hours at work, a sustainable working environment is critical.  The work site, organizational culture and working environment are powerful influences on behavior.   Wellness programs have been uses as instruments to address weight reduction, reduced stress levels, improved physical fitness, health, and well being.  They may include fitness, recreation, social activities and programs to enhance intellectual and spiritual development.

If you think about it, you can’t help but notice the link between wellness programs and business sustainability programs.  However, wellness programs have traditionally been an add on program offered to employees whereas, business sustainability, at its highest level, is executed and embedded in the core business operations.

Notice the benefits cited for wellness programs and see if these don’t ring true for corporate responsibility executed in the workplace.

-  Enhanced recruitment and retention of healthy employees
-  Reduced health care costs
-  Decreased rates of illness and injuries
-  Reduced employee absenteeism
-  Improved employee relations and morale
-  Increased productivity

Sustainable business strategies embedded in the core operations of a business captures the benefits a wellness program aims to make and more.

-  Improve Business Reputation
-  Create Brand Differentiation
-  Capture Industry Synergies with other Sustainable Businesses
-  Reduce Business Cost
-  Improve Employee Satisfaction and Retention
-  Lead Your Industry in Best Practices
-  Improved Stakeholder Engagement
-  Respond to Consumer Eco-Preferences
-  Proactive Measures regarding Environmental Legislation

Providing employees with wellness programs not only provides them a way to improve their health, but it also demonstrates corporate social responsibility.  Businesses taking it to the next step are integrating sustainability plans into the core business.

Take for example the benefits of a bike commuting program for business.  It qualifies as alternative transportation, a contributor to a wellness program and also reduces emissions addressed by a corporate sustainability plan.  There are benefits to the bike commuters as well.  Not only are employees expanding eco awareness in the community and within the business, they are also elevating their moods, saving money, and improving well being.  Explore the ways your organizations worksite wellness programs can extend your sustainability initiatives to provide greater value.

There are approximately 70 business excellence frameworks used around the world, including the Baldrige Performance Excellence Framework here in the United States and the EFQM Excellence Framework in Europe.  These tend to focus on business practices that do not necessarily include sustainability concepts, let alone, business sustainability measurement.

Through our sustainability consulting, we find promoters of sustainability measurement simply wanting the business world to evaluate the social and environmental bottom lines equally as seriously as the financial bottom line.  However, critics of popular frameworks, like the Triple Bottom Line (TBL) , comment that the concept itself promises or implies something that is very difficult to deliver.  While the theory is simple, the challenge is developing a methodology for calculating social and environmental progress with financial rigor.

The search for this common link may have slowed TBL aggregate measurement, but it has not limited progress.  The Global Reporting Initiative (GRI)  offers a set of 79 universal indicators and guidelines for sustainability reporting.

The G3 guidelines offer:

•    Principles to define report content

•    Principles to define report quality

•    Guidance on how to set report boundaries

•    Guidance on how to plot a path for continual improvement

The Australian Business Excellence Framework (ABEF)  is an integrated leadership and management system that describes the elements essential to sustainable organizational excellence, which provides a closer tie to the financial bottom line.  The Approach, Deployment, Results and Improvement  (ADRI) assessment matrix is used to examine organizational performance.

Business Sustainability Reporting represents an important step in sustainable development.  It reflects executive commitment to transparency and accountability.  By disclosing information on its sustainability plan, companies increase credibility and confidence with stakeholders.

According to a study by Green Seal and EnviroMedia Social Marketing:

•    Only 9 percent of consumer say green advertising is their primary influencer

•    15 percent cite brand loyalty

•    19 percent say word of mouth

•    And 25 percent of consumers say it is a product’s reputation

A strong reputation is a critical component of every business, but it is especially important in driving consumer eco awareness of a specific product or service.  To build business and product reputation, companies need to be able to demonstrate what they say they value.  They need to ‘walk the talk’.

Despite the myth, you do not need to be an environmental business to have a sustainable business reputation.

Start with the simple concept: a sustainable business is a good business.  Begin by implementing some sustainable business practices:

•    Keep in constant contact with customers to understand needs and concerns

•    Over deliver on the quality of products and services

•    Minimize waste in your operations

•    Reduce energy consumption

•    Partner with similar value suppliers

•    Drive efficiencies in your supply chain

•    Increasingly integrate sustainable materials into your products

Green consumers are seeking out companies that deliver on their expectations.  Gain the value of strengthening a business reputation through demonstrated action.