Sustainability is the Future of Business Strategy
In this day and age, with the state of the environment, the pollution levels and depleting non-renewable fuel resources, sustainability in business has become vital. Now no longer restricted to environment, sustainability has become crucial for business longevity itself.
Let us have a look at how companies and brands are dealing with this worldwide:
- Sustainability by Statute: Sustainable business isn’t a mere jargon for people any more. Even a layperson is aware of the sustainable business practices being undertaken nowadays. With changes implementation of the Kyoto Protocol and monitored carbon emissions abroad, and rectification of the Companies Act 2013 and allied business laws closer home, that promotes Corporate Social Responsibilities, this has created more pressure for companies to jump aboard the sustainability bandwagon.
- Global Movement: One of the most noteworthy moves towards sustainability in business has been in identifying industry best practices. Beverage brands across the spectrum like Beefeater& Starbucks have stopped use of plastic straws & stirrers across touch points. A butterfly effect that will lead to greater environmental sustainability. Many Multi-national Companies now understand their potential to reach out and add value towards a bigger dialogue globally.
- Creative Approach: Approaching solutions creatively ensures sustainability in sourcing and production as well, making people eager to avail services and products from companies that keep sustainability in mind. Athleisure giant Adidas has created a line of shoes repurposed from recyclable bottles. In this bold move, they sold 1 million pairs of shoes, all made from plastic bottles sourced from ocean waste. Each pair utilized 11 plastic bottles to make.
- Fuel Power Play: While creative initiatives are all well and good, the need of the hour is to move from non-renewable energy sources to renewable, clean energy. General Motors, the parent company of Chevrolet and Cadillac, is doing just that by sourcing its power from an Illinois wind farm called Enel. With this move, General Motors’ manufacturing facilities in Indiana and Ohio will both be a 100% powered by clean, renewable energy.
- Changing mindsets: People and their minds need to be conditioned towards sustainability for the greater good. Thus brands are focusing on reaching out to the people rather than peddling their products. Arsenal identified the people potential and has worked on energy usage by installing battery power systems in Emirates Stadium. The English football club’s London stadium will soon be powered by a 3 Megawatt system that could power the facility for an entire match. Since their partnership with Octopus Energy, Arsenal has been exclusively using clean energy from solar farms and anaerobic digestion plants.
The way forward
We can’t just look to big multinational companies to take up sustainable business practices. With renewable energy being the need of the hour and the environment needing cleaner and greener treatment, India has to take up sustainable practices in the small scale as well.
According to the United Nations Global Compact, India holds potential for
- $1 Trillion worth of sustainable business opportunities are available in India.
- 50% of the global sustainable development goals will be met by India itself.
- Core sectors in focus are food and agriculture, energy, health and construction.
- Close to 72 million job opportunities in the sustainable development sector that can be realized by the year 2030.
According to experts, in 2017, 1/3rd of manufacturing companies had programs for sustainability in the supply chain. But 80% of companies had proposed or already had sustainable products and services.
Today’s managers therefore have to find ways of ensuring that the gap is reduced. This is why MBA today is evolving and including different aspects previously untouched as a challenge to make the business strategies pan out to the best of their advantage. Top MBA colleges offer global MBA degree/ MBA courses that give the professional skills to land the best jobs. You can also enroll in one the Eastern India’s Best MBA colleges. Check your eligibility here.
