Want to Be More Profitable? More Innovative? Embrace Sustainability.
That’s the message that you’re going to be hearing more and more. It’s not a matter of juggling one at the expense of the other – sustainability is all about gaining greater efficiencies – from promoting greater productivity and energy efficiency to reducing excesses – use of less material where possible, and use of materials or processes that require less energy or resources, or don’t depend on the use of scarce materials. What’s important to point out is that sustainability – and the life cycle thinking that goes along with sustainable thinking – is, by definition, a driver of innovation and greater profitability.
Early corporate social responsibility initiatives, however, seemed to cloud this issue a bit. The emphasis was on social responsibility – with the sense that the cost of being socially responsible was something that corporations needed to take on, simply because it was “the right thing to do.” But, the economic part of the equation cannot be ignored. In short, in order for any sustainability initiative to be successful, the resulting products or services must be competitively priced and of comparable quality.
As noted in a recent article on the subject, Coca-Cola customer sustainability director Jake Backus puts the point simply:
“Consumers will not switch to a more sustainable product unless it is equally good or better than the current one, and equally priced.” Coke is [also] buying new machinery for its producers of plastic bottles so they can make them from plant-based material rather than oil-based matter. The plant-based plastic is likely to be cheaper in the long run. Efforts already made by Coca-Cola in 2009 achieved $100m worth of savings because it cut down on packaging.
At the same time, sustainability does require looking at the economic equation over the long run. The authors go on to describe another leading manufacturer’s sustainability journey – one that acknowledges the importance of looking beyond short-term financial gains:
Unilever wants to double its sales while reducing its environmental impact, something that chief executive Paul Polman has encouraged profit-focused shareholders to support. Polman railed against investors looking only at short-term growth and ignoring longer term sustainability issues. At the World Economic Forum last year, he made an impassioned plea to fellow business leaders to “ignore the demands of short-term shareholders and lead from the front on sustainability and climate change,” The Times reported last autumn.“
In short, manufacturers are beginning to embrace sustainability because it truly can be good for the planet and society, as well as good for the bottom line. And, indeed, must be good for the bottom line, if it is to represent a sustainable solution. For others, sustainability is driving innovation that contributes to top-line growth, as well.
It’s all part of next-generation product design, a topic that is explored in greater detail in our upcoming research study, “Sustainability and the Product Lifecycle: A Report on the Opportunities, Challenges and Best Practices for Sustainable Product Design and Manufacturing.”
So - 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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