2Sustain

There’s no doubt about it: these are tough economic times, and businesses everywhere are facing difficult decisions. Financial prudence has become this quarter’s top priority, and right now, it seems like almost everything is on the table for consideration as a cost-cutting measure. But, what’s the dynamic in your board room when the talk turns to sustainability? Can your company’s green initiatives withstand this kind of scrutiny?

Before you answer those questions, I suggest you take a look at Eric Olson’s thoughtful article, “Pursuing Climate Initiatives While Weathering Hard Times.” Olson, vice president of advisory services at Business for Social Responsibility (BSR), describes the lessons he has learned from BSR members and clients who have successfully managed sustainability efforts during downturns in the market.

Now’s the time for a bold and aggressive approach, Olson says, and for starters he recommends sharply aligning your company’s sustainability efforts with its core business objectives. You may even want to conduct a formal materiality assessment of your company’s sustainability initiatives, Olson advises, because a thorough evaluation like that can help you focus on the areas that will provide near-term savings (think energy and material costs, for example).

In the article, Olson likens sustainability to R&D, an aspect of business that we all know translates into long-term success and profitability.

“The last thing any company wants to do to weather a temporary downturn is cut back efforts in areas deemed critical to the firm's future competitiveness,” he says. “Indeed, great companies, from GE to Toyota to Novartis, have been hailed by analysts and management experts for finding ways to increase R&D spending, including in new sustainability initiatives, during hard times. Your employees and other stakeholders will notice, too, as it is during hard times that corporate values show through and loyalties are built.”

I couldn’t agree more. If you’re looking for cost-savings, now is precisely the time to beef up –not cut –your sustainability initiatives. (Consolidation, waste reduction, energy savings… How many items like these appear on both your cost-control and CSR agendas?) And then, after you make sustainability a strategic imperative, you may discover that green also becomes a way to differentiate your company in the marketplace, contributing even more to long-term success and profitability.

Today’s business environment is uncertain. So, now more than ever, it’s time to re-focus your sustainability efforts on cost-savings and future competitiveness.