The value of sustainability in a difficult economy…Part 3
In my last post I discussed an analysis by A.T. Kearney of the benefits of sustainability on the financial performance of publicly traded companies they described as sustainably-focused. Green Winners is a compelling read though it is fairly high level and strategic in its point of view. Today I came across this article today from Industry Week: Sustainable Packaging Initiatives Are a Viable Cost-Reduction Solution in a Downward Economy it is much more operationally focused but no less compelling. According to the article’s author Ryan Humphrey of ModusLink:
A key misconception is the belief that higher costs are intrinsically associated with sustainability efforts. The holistic approach affords visibility into the entire product life-cycle, from manufacturing and packaging, to delivery, recycling or disposition.
When sustainable improvements are considered from this perspective, most organizations will realize a cost savings and positive impact on the bottom line.
A key driver in the movement to sustainable packaging is non other than Wal-Mart who according to the article:
- Is striving to achieve a 5% packaging reduction by 2013
- Promised to become packaging neutral by 2025
Given that they are requiring all suppliers to enter packaging data into their Wal-Mart Retail Link Scorecard it is pretty clear that the packaging supply chain will move with them.
More and more companies are clearly seeing the cost benefits from sustainability efforts through (GHG) Greenhouse Gas Reduction, waste management and recycling. At the end of the day, all these efforts are about business efficiency, reducing waste and effectively managing resources and materials. Those companies that assess and manage their carbon footprint, that implement ISO 14001 based (EMS) Environmental Management Systems and develop a strategy of (CSR) Corporate Social Responsibility will be better positioned to survive the current economic crisis and grow when it ends.
-FR
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