Despite all the difficulties the pandemic has delivered in 2020, we have no choice but to plan ahead for 2021 and beyond. Just having experienced a series of devastating typhoons, climate change has to be on our future agenda. Climate change is somewhat connected with another important change to be added to our “future agenda”: sustainability.
As you are aware, the SEC expects “sustainability reports” from the large organizations starting now; but let’s be clear that the future of all organizations hinges on its ability to look at sustainability (and climate change) to stay ahead of the competition and to be loved by the millennials and the centennials, inside and outside our organization—and by our customers, of course.
Let’s look at the most common pain points regarding sustainability:
Incorporating sustainability goals within each department
AS mentioned above, companies are feeling the pressure from society to mitigate the environmental impacts of doing business.
Some companies are claiming to be “carbon-neutral” by 2030. What about us? There is no question that top management, brand managers and product leaders need to scramble to spot opportunities and translate those into actions. We need to show progress already next year.
Where to start? Energy consumption, waste reduction, packaging, redesigning the product?
How to influence consumers? What role do customers play?
While some sustainability challenges can be solved within the organization, in most cases we, however, need the involvement of our stakeholders, such as suppliers of energy, water, raw materials and intermediates, packaging materials, etc. And we have to work closely with our customers to influence their behavior regarding sustainability issues from recycling schemes to less wasteful products or services. This will only be possible if we have developed a level of trust with our clients that allows both parties to become winners in a joint innovation approach.
Better packaging and reduced energy consumption
Let’s look at two areas within the sustainability challenge. The first pressure point is our idea of a single-use packaging. Times have changed. When products are sold and delivered by e-commerce channels that are growing by the minute, they don’t require the same packaging as in the old days. Requirements for these products are shifting, making today the right moment to create better solutions.
The re-use of containers, lighter materials and fewer steps in production can lead to lower costs and higher competitiveness.
Add to this the option of using less energy; both steps would be a strong incentive to improve the packaging performance and the energy consumption.
Set and measure sustainability objectives
IN a strategic development like this, it is essential to create priorities. Business—as we all know—is driven by people and these people need to understand the goals very well and will have to become intrapreneurs in creating the solutions. They will also have to be given authority to express their views of what works and what doesn’t, also looking at examples of other organizations they are dealing with. Aligning all stakeholders to the vision and its success may not be easy but the strategy—if successful—can be replicated when solving the next disruptive challenges the company is facing.
Sustainability evaluation
Given the ever-changing world in which we live today, we will certainly have to review our sustainability strategy continuously and optimize it. Again, working closely with stakeholders—from suppliers to consumers, from feedback of our production and marketing/sales staff to competitor behavior—is essential. And again, this will only work if management and staff are trusting each other and work as teams.
I wish you luck in this process.
Feedback is more than welcome; contact me at hjschumacher59@gmail.com