MIT/Boston Consulting Group’s Innovation and Sustainability Study Provides a Glimpse into Sustainability “Best Practices”
According to the recent research study, “Sustainability: The “Embracers Seize Advantage” conducted by MIT Sloan Management Review and The Boston Consulting Group, the business case for sustainability as a foundation for future growth is strong among top performers. It also suggests that sustainability-driven organizations exhibit seven shared traits, which are described in more detail below.
More specifically, those companies that have made sustainability a core part of their business strategy -“the embracers” -- are not only more sustainability-savvy - they're also experiencing greater business success than their peers. What are they doing that their poorer performing peers are not? The sustainability "embracers" see the payoff of sustainability-driven management largely in intangible advantages, process improvements, the ability to innovate, and critically, in the opportunity to grow, according to the research. By comparison, the laggards, or the “cautious adopters” see the business case for sustainability mostly in terms of risk management and efficiency gains.
More specifically, those companies that have made sustainability a core part of their business strategy -“the embracers” -- are not only more sustainability-savvy - they're also experiencing greater business success than their peers. What are they doing that their poorer performing peers are not? The sustainability "embracers" see the payoff of sustainability-driven management largely in intangible advantages, process improvements, the ability to innovate, and critically, in the opportunity to grow, according to the research. By comparison, the laggards, or the “cautious adopters” see the business case for sustainability mostly in terms of risk management and efficiency gains.
So what does this tell us? Namely, that – sustainability isn’t just about managing the risk of non-compliance or pushing to achieve zero waste or to improve efficiency. That’s just a starting point. As Santiago Gowland, vice president of brand and global corporate responsibility at Unilever puts it, “The only way to continue growing and to continue being a successful business is to treat sustainability as a key business lever in the same way that you treat marketing, finance, culture, HR, or supply chain.”
Other key findings of the study include:
- Sustainability spending has survived the downturn, with almost 60% of companies saying that their investments increased in 2010
- Companies across all industries agree that acting on sustainability is essential to remaining competitive
- The sustainability-driven management practices of embracer companies exhibit seven shared traits that together suggest how sustainability may alter management practice for all successful companies in the future
The seven shared traits of top performing, sustainability-driven “embracer companies” include:
- Move early – even if the information is incomplete.
- Balance broad, long term vision with projects offering concrete, near term “wins.”
- Drive sustainability top-down and bottom-up.
- Aggressively de-silo sustainability – integrating throughout company operations.
- Measure everything.
- Value intangible benefits seriously.
- Try to be authentic and transparent – internally and externally.
To learn more, or to download a copy of the full report, see “Sustainability: The “Embracers Seize Advantage.” It’s a compelling report, one well worth reading.
Of course, as many of you already know, we’re working on some sustainability research of our own – related specifically to sustainable product design and manufacturing. And we’re anxious to learn more about the ways in which your organization is -- or isn't -- experiencing the benefits of being "sustainability-driven," so – please consider this your invitation to participate in our study. You’ll be eligible to receive a FREE copy of the research findings.
It’s all part of next-generation product design, a topic that is explored in greater detail in our upcoming research report, “Sustainability and the Product Lifecycle: A Report on the Opportunities, Challenges and Best Practices for Sustainable Product Design and Manufacturing.”
Do you have what it takes to design sustainable products? Or wish you did? Tell us more. By taking this short survey, you’ll be helping to shed light on this very important – and often highly debated – topic. Whether you’re a sustainability expert or just beginning your journey – your feedback is invaluable.
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