Organizations, businesses and facilities from a multitude of industries are now taking steps to become more sustainable — steps which almost always prove rewarding on a number of levels. For instance, many facilities achieve significant cost savings by reducing energy, fuel and water consumption. Facility managers often find that incorporating sustainability strategies into their operations allows them to attract better tenants who are more willing to make long-term commitments to a property.
Even activities that do not require a facility or organization to make specific changes to improve sustainability can yield improved financial results and can enhance community and consumer respect for the entity in question. For example, a 2010 study of corporate responsibility in the form of philanthropy (giving back to the community is a key element of corporate sustainability) found that charitable contributions are often associated with future revenues, improved consumer perception and can also further a firm’s economic objectives.1
However, a 2011 study published by the Ivey Business School (part of Canada’s Western University in Ontario) found that many organizations are still struggling to become more sustainable. This is true even though these organizations are well aware of the possible benefits of doing so, which range from improved public relations and perceptions to bottom-line financial rewards. To find out why, the researchers invited representatives from leading Canadian businesses to discuss the issues in an effort to discover what prevents some businesses and organizations from becoming more environmentally focused and sustainable.
Ground rules
The researchers first had to define business sustainability. The working definition of business sustainability typically refers to the phrase “triple bottom line,” coined in 1994 by John Elkington and referenced in his 1997 book “Cannibals with Forks: The Triple Bottom Line of 21st-Century Business.” This is about reimagining the concept of success to include social and environmental performance in addition to financial earnings.
The Ivey School researchers expanded on this definition, stating, “A sustainable business is one that is resilient and creates economic value, healthy ecosystems and strong communities. These businesses survive external shocks because they are intimately connected to healthy economic, social and environmental systems.”
In other words, sustainability must be incorporated throughout a business’ operations. According to Stephen Ashkin, CEO and founder of Sustainability Dashboard Tools (makers of a cloud-based technology that helps organizations monitor and manage their use of natural resources and improve efficiencies), “This is often referred to as a ‘culture of sustainability’ in which everyone in an organization realizes the role they play individually and collectively to improve an organization’s sustainability.”
Identifying the top hurdles to enhancing sustainability
The Ivey School researchers were able to identify several hurdles that commonly prevent businesses and organizations from becoming more sustainable. While some of these obstacles are specific to certain types of businesses, others apply to a wide spectrum of organizations, including facility management and operations. These hurdles include:
- The availability of too many sustainability measurement metrics makes the process confusing. While experts agree that “what gets measured gets managed,” many managers find sustainability initiatives to be particularly hard to quantify. The success of these initiatives tends to be highly dependent on who implements them and how they are carried out; their short- and long-term impacts may not always be immediately obvious.
- There is a lack of government policy designed to encourage organizations to achieve more sustainable outcomes. While governments have several tools to achieve this, including tax credits and regulations that encourage sustainability efforts, these measures are sometimes applied poorly, ineffectively or in a contradictory manner. Further, some incentives are created without consultation with businesses and organizations. Most organizations would rather work with governments to become more sustainable than be forced to do so without the opportunity to provide input on the process.
- There is limited knowledge regarding how best to motivate employees to undertake sustainability initiatives. While employees often say they want to work for companies that are sustainable, many organizations have found that it is far easier to generate ideas and initiatives at a grassroots level than it is to implement and sustain them throughout the full company hierarchy.
- Among consumers, sustainability measures may seem merely “promotional.” Many organizations lack the expertise to communicate effectively with the public regarding their sustainability efforts, often leading to the perception that these efforts are “advertorial” in nature rather than real and credible accomplishments.
- There is no common set of rules or “best practices” for identifying sustainable suppliers. For instance, at one time green cleaning meant little more than using green and sustainable cleaning products. Today, cleaning contractors also need to use green and sustainable cleaning strategies. Some organizations have developed standards to help managers identify suppliers that incorporate both green and sustainable products and cleaning methods, such as the worldwide cleaning association ISSA’s Cleaning Industry Management Standard — Green Building. However, this is just a start; there is much more that needs to be done to develop a comprehensive set of accepted industry best practices.
Addressing sustainability hurdles
According to Scott Levin, CFO and chief administrative vice president of GOJO Industries, Inc. (a leading global producer and marketer of skin health and hygiene solutions), “Some of these hurdles may prove difficult for businesses, as well as property owners and managers, to address. For instance, [government”> policies encouraging businesses and organizations to be more sustainable can take considerable time and prove difficult to change. However, we have found there are many steps an organization can take to drive change and help employees view sustainability as an opportunity [and”> core to business operations.”
According to Levin, it all starts with recruiting executives and managers who believe in the importance of sustainability and its potential to benefit an organization and its staff, the community and the environment. These individuals must possess strong persuasion skills as well as the ability to motivate and influence others within the organization along with other key stakeholders. “These persuasion skills are fundamental to effective leadership [but are”> crucial when it comes to committing an entire organization to an effective sustainability strategy,” says Levin.
Levin believes an effective sustainability leader must be able to implement the following strategies:
- Include sustainability in all business operations and planning. Sustainability goals must be part of both annual and long-term strategy plans.
- Educate employees on sustainability issues and strategies and their importance to the organization and the community. “Leaders must sync sustainability efforts with such things as cost savings and revenue growth to help drive enthusiasm among staff and the organization,” explains Levin.
- Make use of an effective tracking and reporting system. “While one of the hurdles identified by the researchers is that new technologies can be difficult and confusing, new technologies are making these tools easier to use, allowing best practices to emerge,” says Levin. “Tracking and reporting metrics are essential to smart decision making throughout an organization.”
- Make departments and divisions within an organization accountable regarding environmental performance and encourage continuous improvement.
The new paradigm
According to the Ivey Business School study, we are now witnessing the birth of a new business paradigm. Organizations will no longer be separate from society, focused only on their own financial success. Instead, in this new reality, the idea of the “businessas-society” will emerge.
“The reality is surfacing that the current source of production and consumption cannot be sustained within our natural resource limit,” says Levin. “The vast amount of resources used in the 20th century to address society’s needs has depleted natural resources, created enormous waste streams and compromised our land, air, water and health. That business model will not work in the 21st century.”
Addressing this new business model may prove more difficult for some organizations than for others. “But those organizations that can tackle these hurdles and overcome them will likely be the leaders of the future, helping to shape the business landscape for this and future generations,” concludes Levin. FMJ
