This blog is part of a series about the operations pain points that many organizations face as they tackle digital transformation and change management. Our experts provide insights and recommendations based on their decades of hands-on experience and tackle some of the most pressing business and technology pain points.
Sustainability is critically important for every industry, but many transformation projects and operating models may not include environmental considerations when defining target states for strategy, customer and employee experiences, services and products, governance, and security.
In today’s environmentally conscious global community, sustainability is often a factor for regulatory compliance, brand and reputation, resource conservation, and long-term viability. Contributing positively to global objectives such as the United Nations Sustainable Development Goals (SDGs) can help organizations gain a competitive advantage in being able to access new markets or partnerships focused on sustainable solutions or attract socially conscious customers and investors.
Effective integration of sustainability requires a culture of responsibility throughout an organization and the forethought to include sustainability considerations in its operations goals. To create this type of culture, companies need to mitigate their environmental impact and implement practices to benefit both the business and society.
What are some examples of ways that businesses can implement eco-friendly practices?
The following are a few of the ways that organizations can incorporate sustainability practices into their operations and future transformation projects. While every consideration below may not be applicable to every type of business, the suggestions below can also help guide partnerships and purchases for sustainability.
1. Climate change mitigation – This practice includes reducing greenhouse emissions by transitioning energy use to renewable energy sources such as wind, solar, and hydro energy. It also includes adopting sustainable transportation options and setting targets to reduce emissions.
2. Circular economy – Instead of the traditional “take, make, and dispose” model of consumption, a circular economy aims to minimize waste and maximize the use of resources through recycling, upcycling, and designing with longevity in mind.
3. Sustainable agriculture – Practices such as organic farming, precision agriculture, and the use of regenerative farming techniques focus on reducing the environmental impact of farming, deforestation, water pollution, and biodiversity loss.
4. Biodiversity conservation – Efforts include preserving natural habitats, restoring degraded landscapes, and combatting illegal wildlife trade with the goal of maintaining the health of ecosystems.
5. Green technologies – Technologies and innovations such as renewable energy, energy-efficient buildings, and eco-friendly materials are all considered green.
6. Sustainable transportation – A shift to electric or renewable natural gas-powered vehicles or public transportation can significantly reduce carbon emissions. Sustainable transportation also includes cycling or walking.
7. Sustainable supply chains – Transparent and ethical supply chain management that involves improving the environmental and societal impact of sourced materials, manufacturing, and distribution creates sustainable supply chains.
8. Renewable energy transition – This practice is a shift to reduce carbon emissions by transitioning to renewable energy sources where possible.
9. Sustainable packaging – Packaging to reduce waste, reduce plastic, and minimize environmental impact such as biodegradable packaging and reusable containers is considered sustainable.
10. Environmental, Social, and Governance (ESG) investing – Many investors now look for businesses with strong ESG performance that includes responsible business practices and sustainability-driven decisions and innovations.
11. Green policies – Governments and businesses are implementing policies to promote sustainability such as environmental protection laws and renewable energy use incentives.
12. Consumer awareness – Consumers who are more environmentally conscious favor doing business with companies that adopt sustainable initiatives and communicate their commitment to sustainability.
Are there any drawbacks to sustainability practices?
When an organization implements a sustainable practice, it’s important to make sure that the entire process surrounding that practice is, in fact, environmentally friendly. Some practices seem eco-friendly on the surface but may not always meet fully “green” standards. The term “greenwashing” is used by critics of practices that seem environmentally friendly but ultimately are not as sustainable as claimed or any more sustainable than other practices that achieve the same function or outcome.
For example, an eco-conscious advertising agency promised clients that they would use recycled and recyclable paper for any paper products printed. However, many of the materials they produced required a gloss coating over the recycled paper to make it more durable. They learned that in many cases, the coating made the paper non-recyclable.
Another example is electric cars. While they produce lower carbon emissions than cars powered by gasoline, they use large batteries that rely on electricity. Electricity is often produced from both fossil fuels and renewable power, and the electricity needed to power electric cars must come from the nearest energy grid regardless of how the electricity is produced. The New York Times also reports that some of the raw materials and metals used to make electric vehicle and battery components are mined and extracted using questionable or polluting processes.
When implementing any environmentally friendly practices, organizations should research the service, product, or process to ensure its sustainability.
What does becoming “net zero” mean?
Many governments and businesses have outlined goals to reach net-zero emissions of greenhouse gases in the atmosphere, and depending on the organization, this could be one consideration to include in future transformations. Net-zero emissions can be achieved by reducing emissions produced and capturing or removing any emissions produced from the atmosphere.
Greenhouse gases include carbon dioxide, methane, nitrous oxides, and water vapor. Carbon dioxide is considered the most important gas to remove because it absorbs heat radiating from the Earth’s surface and re-releases it. This gas is also the one primarily emitted through human activities.
Some organizations try to reach net-zero emissions goals by purchasing carbon credits (also known as carbon offsets) from companies that reduce emissions and absorb carbon dioxide. This helps organizations that are unable to reduce or eliminate their carbon footprint from their activities work towards their net-zero objectives. However, the carbon credit market can be deceiving and fall into the greenwashing category with the wrong supplier.
Want to learn more?
The “Operations Pain Points Solved” series highlights common issues faced by organizations everywhere. Read the other blogs in this series to learn about transforming company culture, managing complexity, transformation and AI, establishing a target operating model, optimizing the customer experience, transformation planning, managing people, and more.
