Probably not. But we can try to get close to the ambition of having a sustainable business strategy.
Most businesses don’t possess a deep understanding of what sustainability is or what having a sustainable strategy means. Broadly speaking, a sustainable business is one whose purpose and actions are equally grounded in financial, environmental and social concerns. Unfortunately, it is not an easy job to become one. And it is impossible to be 100% sustainable.
Even more so, some would argue that real sustainability may not even make business sense in a business environment characterised by a dichotomy between profit and ecological well-being.
But how did we get here and what can businesses do about it?
Globalisation’s part in all this
I’m a fan of globalisation and always believed to be a citizen of the world. I love the fact that I can travel and work pretty much anywhere, which I have done for the past 15 years. But most of all, I love discovering different cultures and making friends with people born and raised under different skies. It’s such an enriching experience that I could not live without it.
Evolution or involution?
However, the more I enjoy this, the more I realise that the progress the world has made (in terms of technology and lifestyle in particular) has left marks (and still is, and will continue to do so) that can no longer be erased.
We call them climate change, unstainability, pollution, stress, anxiety disorders etc. although generally, we would simply name them progress, development or evolution.
Parenting changes people
The impact our way of living has on the planet has been on my mind for some time now, and it’s a constant thought throughout my daily life. And I’m pretty sure it’s the parenting that made this happen. Surely enough, I was aware of it before, but now everything feels more poignant and urgent. And I can tell you for sure it is related to my daily wondering of how much dust particles are in the house, how much of the kids’ coughs are related to pollution, how much of their tummy aches are related to the pesticides from the apple’s skin they had for snack.
One might say I take this to the extreme, as I don’t even use lemon peelings anymore when baking cakes…
Career and impact
When I was younger and thought of career paths, the decision was, without any doubts, to have an international career. At that age, it meant travelling around the world in some official capacity. It sounded nice and prestigious. The consequence of that was that I became an expat and joined the expat community in the many countries I worked and lived in. And I loved it. Still, do.
However, the older I grew (and hopefully, wiser), the more I thought about the impact my work had. It had to be more concrete, more palpable and impactful.
Business strategy and sustainable business growth
Hence, I chose to dwell in business strategy. It is the most important part of any organisation, it is essential and it is the only, truly competitive advantage. Even more so, I chose to work with organisations focused on creating real value as opposed to having a strong commercial focus (profit as a
My focus more recently has shifted to helping businesses, organisations, and people in general, understand what it takes to become (more) sustainable.
- What makes a company sustainable?
- How can a company develop sustainability?
- What is a sustainable business strategy?
- How can a company create a sustainable business model?
- How can small businesses become sustainable?
Though being 100% sustainable is impossible, we can all do a little bit to make things better. Bringing this into the discussion is the first thing. The second is to include this in your business strategy. Better more, make sustainability the basis/ background/ canvas for your business operations. Put this at the core of what you are doing.
Business model vs value proposition
I recently came across a great example of building a sustainable business model. The guys at Truman’ s (and I’m not talking about the brewery, London people) have built their business on the beliefs that to be profitable, you do not need to harm (that much) the planet. And the even more interesting thing about it is that their value proposition is about convenience and simplicity, not sustainability. Sustainability is the core of the business itself.
What does it take for more businesses to think like this? Courage, most likely! Because it goes against familiar practices and predictable financial self-interest.
Although, at the end of the day, the business purpose is to attract customers, as a business owner you should focus on creating high value for your customers.
Whatever your motivation for starting a business, dare to start with a sustainable business model. It will bring you even more customers, and you might feel better about yourself. Dare now!
Dare now
Strategic initiatives integrating sustainability play an important role in the long term. Put sustainability into practice and find instructive ways to build it into drivers of value.
- Returns on capital through:
- Sustainable operations
- Sustainable value chains
- Green sales and marketing
If you are looking for returns on capital, sustainability might help you reduce costs, by improving the way you manage your resources (for example by reducing energy consumption or waste in manufacturing) and the way you manage your value chain (for example, by reducing packaging)
- Manage risks:
- Operational
- Reputation
- Regulatory
If you take time to detect key risks for your operations, caused by climate change, resource scarcity or community issues (Brexit), you can manage them better and be prepared. It’s all about becoming or remaining agile in uncertain times.
- Growth through:
- The composition of the business portfolio
- Innovation and new products
- New markets
When you pursue sustainable goals, you need to constantly revisit your business and analyse your portfolio to realise how the risks you identified can impact you. Having a sustainable business strategy will more often than not lead you to discover unmet needs in the market and new customer segments.