As leaders from across the world met recently in Sharm El-Sheikh, Egypt for COP27, it became clear that the climate crisis is a once-in-a-lifetime challenge. Everyone, from individuals to businesses and governments, must work together to create a sustainable world. Here are five ways that growing businesses can embed sustainability at the centre of their operations.Â
Shift thinking from “product” to “process”
Sustainability is a process without a definite start or end. In industry, this sort of process thinking is increasingly common. Swedish bearing and seal manufacturer SKF, for example, has shifted focus from individual components to performance-based agreements, offering continuous support in all areas of rotating equipment needs like maintenance and uptime. By switching to longer-lived, better suited components as part of a monthly subscription service, a facility can cut overall costs and significantly reduce waste.Â
Another benefit of adopting a subscription-based, process-focused approach is that it integrates more effectively with a circular economy. Rather than considering the product as disposable, process thinking encourages the consideration of more sustainable options, such as refurbishment, repair, upcycling, remanufacturing, and recycling.Â
Focus on transparency and accountabilityÂ
More than ever, people are supportive of sustainability efforts and frustrated by organisations that aren’t doing their part. This is true for employees, prospective customers, and members of the public.Â
Businesses can benefit from this by creating a consistent, standardised disclosure process. Decision-makers, knowing that their organisation’s performance will be scrutinised, will be incentivised to make sustainable decisions. This approach offers a chance to join the larger conversation around sustainability and learn from others.
Transparency can even result in opportunities to increase a business’s efficiency. In the airline industry, for example, spare part sharing across operators is common, and this reduces risk while providing financial and environmental benefits.Â
Celebrate industry achievementsÂ
Too often, discussions around sustainability can be negative or accusatory. Behavioural science research has found that negative reinforcement results in worse outcomes, and positive reinforcement delivers clear results. Although the path to a sustainable world is long and complex, we must remember to celebrate milestones along the way.Â
An increased focus on the sustainability benefits of second-hand clothing, for example, has caused that market to skyrocket – it is set to reach a total value of US$77 billion dollars by 2025. Similarly, co-branded logos, such as the Fairtrade logo, are a cost-effective way to focus on sustainability wins and encourage positive action.Â
Embrace the power of dataÂ
Clear data means actionable, real-time insights so decision makers can reduce risk and act with confidence. Sustainability data should cover the entire journey of a service, product or process, from the design stage to use. Where possible, data should also be made accessible, contributing to transparency.Â
Examining data in detail can also reveal sustainability and business opportunities. For example, industrial businesses regularly purchase spare machine parts to ensure they are on hand for essential maintenance and repairs. Yet these new spares often stay on the shelf, meaning that perfectly good parts end up being sent to landfill when retooling or closing operations.Â
Today, according to research by Machine Compare, approximately €10bn worth of industrial surplus parts are sitting in facilities’ inventories worldwide. That’s why the business is focused on creating an online market where companies with unused spare parts can seamlessly trade them with other companies who can put them to use.Â
Stay focused on the visionÂ
Creating a sustainable business is a noble goal, but it isn’t always easy. Challenges are inevitable and slow progress can be discouraging. To maintain motivation and maximise internal buy-in, businesses must articulate a clear mission or vision for their ESG targets.Â
A business’s targets should be clear and ambitious but shouldn’t prescribe a method for reaching them – the most effective strategy may not be the first one that decision makers think of, and it may change over time. “Failing fast” is a proven way of rapidly moving toward a goal.Â
It must be a priority to build a circular economy and integrate sustainability across every part of society. This is an unprecedented global project, but – through collaboration and hard work – it is possible.Â
