Examples of Business Sustainability
Some of the first lessons for improving our planet seem simple. Reduce, reuse, recycle. Since then, people have made lifestyle choices and adjustments, such as riding a bicycle to work and separating waste, to put these rules into practice and protect the environment. Climate change now affects not only individuals but also businesses. According to the United Nations Environment Program (UNEP), both consumers and investors are being turned away by companies that ignore their environmental impact. Sustainable business practices are an essential part of an organization’s commitment to social and environmental responsibility. Sustainability in business also provides organizations with the opportunity to create more efficient supply chains that have a positive impact on the planet.
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Business activities contributing to carbon emissions and fossil fuels are forcing organizations and policymakers to hold their leaders accountable for their actions on environmental impacts. Likewise, employees and customers want to work for companies that are actively working to reverse climate change and protect the environment. There are various examples of sustainable business practices that companies can adopt to improve their business models. One common corporate sustainability strategy is known as the Triple Bottom Line.
The Three Pillars of Sustainability: The Triple Bottom Line
Profit, people and planet make up the trifecta known as the Triple Bottom Line. The triple bottom line, a variation of the business term “bottom line,” also known as bottom line, adds two more players to the mix of modern business strategy. Sustainability is at the heart of the triple bottom line, suggesting that companies that adopt sustainable business practices can protect the planet, serve consumers, and ultimately increase profits.
Recycling programs, renewable energy sources, waste reduction and energy efficiency – all of these factors, in theory, can contribute to a better environmental footprint. So what green business practices can organizations today implement to achieve their sustainability goals?
Improved energy management efficiency
Organizations can begin to build their sustainability efforts by adopting more efficient energy sources. Alternative energy, or clean energy, is less harmful to the environment than fossil fuels and can often be used as a replacement for the latter.
We can also create renewable energy using Earth’s natural resources such as sunlight, wind, water, etc. Generating power through natural processes helps minimize carbon emissions. For example, Google ranked first in purchasing more renewable energy than any other company over the past decade. The tech giant has matched its electricity consumption with purchases of 100% renewable energy. Sustainable companies track these metrics to be more proactive in their sustainability efforts.
Carbon accounting allows companies to determine which activities contribute to producing greenhouse gas emissions (GHG). Implementing carbon accounting into your sustainability strategy demonstrates to stakeholders that your organization is committed to decarbonizing due to environmental, social and governance (ESG) pressures to achieve net zero.
Deploying new infrastructure
Decarbonization can be achieved through activities such as energy electrification, zero waste production targets, and travel restrictions. Organizations can invest in renewable energy to combat carbon emissions. General Electric (GE) is committed to reducing its carbon emissions, particularly through renewable energy sources. The company offers a variety of offshore and onshore wind, hydro, hybrid, grid and services solutions.
Large corporations are not the only ones contributing to decarbonization and environmental protection. In the first episode of the Impact-Up podcast, we interviewed BAE Boats, a California startup that offers electric boat fleets for short-term rental. Electric boats have no noise or gas smell, giving customers a more desirable experience than traditional combustion engines. With sustainability at the core of its brand and business values, BAE Boats has been able to grow its operations through the pandemic and beyond.
Dynamic supply chain development
A sustainable supply chain is the primary way organizations can maintain efficiency while implementing sustainability measures. Organizations with transparent supply chains demonstrate their commitment to social responsibility. Some examples of supply chain sustainability include packaging recycling programs, practicing fair labor practices, and sourcing materials responsibly from local communities.
Patagonia uses eco-friendly materials when making its products and packaging. The company also reduces waste by recycling returns and other sustainable materials during the manufacturing phase. Patagonia also strives to communicate its sustainability goals by educating consumers about responsible consumption of clothing. The company promotes the motto “Buy less, demand more” throughout its business model.
Resilient Sustainability Strategy
Many sustainability initiatives stem from policy and will continue to grow as future generations become increasingly supportive of environmental sustainability. Resilient companies will comply with external regulations on sustainable business practices (e.g. ESG regulations) while also meeting social responsibilities. Companies with successful sustainability programs support both human rights and the environment. To implement resilient and sustainable business practices, consider some examples:
employee benefits
Employees are the foundation of any successful organization and their well-being is critical to achieving sustainability goals. By adopting sustainability, businesses can create a healthier work environment. Microsoft is making this happen by using renewable energy in its facilities. We also encourage employees to practice mindfulness, engage with the community, provide work-life flexibility, encourage accessibility to green space in the workplace, and recognize employee performance.
fair trade practices
Raw materials are critical to supplying and supporting local communities so businesses can continue to operate at a ground level. Economic stability is as important to farmers as environmental impact. Companies that compensate local farmers fairly through market wages and ethical working conditions represent sustainable development. Starbucks is known for its fair trade practices with local farmers.
waste reduction
Removing plastic from our oceans and landfills is a collective effort to protect our planet. Unilever is one of the fastest-moving consumer goods companies and is also known for its goal of creating a world without waste. As well as reducing plastic use, Unilever is also fighting food waste during manufacturing.
Sustainability in business and IBM
A sustainable business starts from within. They start with communities and ecosystems through small changes. But when large corporations begin sustainability efforts, there are ripple effects that impact stakeholders, employees, and consumers.
IBM® believes that sustainable businesses must be accountable, equitable and viable to achieve quadruple returns. With deep industry expertise, ecosystem partnerships and proven methodologies, our sustainability consulting advisory services guide clients to best practices and competitive advantages for becoming a sustainable business.
Our end-to-end sustainability consulting capabilities embed sustainability solutions into an organization’s operations and culture. This includes business strategy, ESG data, risk management and reporting, circular supply chains, carbon emissions reduction, energy transition to renewables, intelligent assets, responsible computing and green IT.
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