As executives incorporate sustainability considerations into their strategic planning and operations, the resulting benefits include more effective employee attraction and retention, risk mitigation, supply chain management, and more.
A panel of company leaders participating in a Sensiba webinar said that while some executives approach sustainability as a compliance exercise, the potential benefits can spread through to an organization’s culture and help it save money as well.
“There are many thoughtful people that are looking to drive change and to work with organizations that are doing good, celebrating people, and nurturing growth,” said Ahmed Rahim, Chief Visionary Officer and Co-Founder of Numi Organic Tea. “We’re here not to just focus on shareholder profitability, but also all the stakeholders involved, including employees. It is very important, and organizations are attracting people that want to create impact and put their time sweat, blood, and tears into something that goes beyond just creating a product.”
Promoting Employee Attraction and Retention
With more people interested in working for employers who share their values and provide a sense of purpose, including sustainability in the organization’s operations makes it more attractive to prospective employees.
“Since we’ve really become focused on sustainability, we’ve doubled our firm in the last four years, without acquisition, and that’s the proof in the pudding,” said John Sensiba, Managing Partner, Sensiba LLP. “That’s not the point—the point is to do the right thing—but it’s evidence that doing the right thing, especially in today’s transparent world, helps you attract a labor force and customers.”
To learn more about this sustainability benefit read our articles “Sustainability Attracts Talent” and “Sustainability and Employee Retention: A Winning Combination for Businesses.”
Risk Mitigation
With an increasing number of sustainability-related disclosure requirements and growing expectations for sustainable practices among customers, companies that overlook sustainability can be taking on a higher level of compliance, reputation, and marketplace risk.
“We do a total risk assessment when we onboard our customers because this is such a dynamic environment, with changing regulations and changing situations,” said Hannah Kain, President and CEO of the supply chain management firm ALOM Technology. “When it comes to sustainability and reporting, it’s important to help our customers with understanding their requirements and providing information so they can report quickly. There’s a lot of risk in the supply chain, starting with environmental risk, but there’s also social, and of course, governance, compliance, and oversight risks.”
Organizations face risks from failing to describe what they’re doing effectively to business partners or customers. “We worked with a company that was actually a pretty good actor, but didn’t tell their story well and they didn’t get a good grade on a scorecard for a certain buyer,” said John Sensiba. “We helped them identify and explain what they were doing in a way that allowed them to continue to sell to that customer. It shows you the risks they had—not because they weren’t doing the right thing, but because they didn’t know how to tell their story well enough.”
Supply Chain Efficiency
Sustainable practices also provide opportunities to increase efficiency and reduce operational costs throughout organizational supply chains. Kain said minimizing product packaging, choosing suppliers close to production facilities or customers, and optimizing shipping routes can reduce the waste and carbon emissions in an organization’s supply chains.
“The first thing we look at is, ‘are we doing things we don’t need to do?’” Kain said. “When a package comes to your doorstep, maybe two-thirds or three-quarters of the box contains air that has been transported around and used up resources.”
The opportunities to maximize the benefits and ensure economic resilience for your business are growing. To learn more about integrating sustainable practices into organizational strategies, planning, and reporting, contact us.
