Sustainable Development Strategies in Business Processes

The concept of sustainable development is an area of opportunity for business leaders around the world. Industries are showing unprecedented interest in the business potential of sustainable development. Corporate sustainable development is an approach to developing long-term prosperity by integrating strategies for economic success, environmental quality, and social capital. It entails developing action plans to help reduce carbon footprint, increase recycling, adopt the use of renewable energy etc. These actions can be infused into business processes to optimise costs and make processes more efficient. A good example is represented in the manufacturing industry, whereby production companies make use of recycled materials and equipment to reduce costs. Organisations such as Shell Petroleum Development Company, Mastercard, Ecoprune and the start-up Abari Sunglasses that have incorporated sustainable strategies are gaining positive industry traction and recognition towards driving this initiative.

Some business leaders believe that there are potential business gains in implementing sustainable initiatives. These benefits include; reduction of waste, operational cost savings, development of new products and service offerings through innovation, positive business reputation, goodwill, and competitive advantage. It is important for companies to align their processes with sustainable global best practices to gain economic rewards. It is believed that the commitment to embedding corporate sustainability will be valuable in the long-term for investors and employees. On the flip side, others believe that there is a diminished impact of corporate sustainability as it is not enough in building a competitive advantage. For example, some companies adopt environmental, water or waste management systems to exploit cost efficiencies to improve their bottom line. Although such systems adopt corporate sustainability practices, only a few companies would gain the benefits of competitive advantage.

Infusing sustainable methods into business operations would translate to environmentally conscious processes that increase efficiency, cost optimization of processes and a robust ecosystem footprint. Furthermore, according to findings from the International Finance Corporation (IFC), implementing corporate sustainability strategies can help unlock at least $12 trillion in opportunities for businesses worldwide by 2030. This favours businesses taking steps to integrate corporate sustainability over their counterparts. In line with creating a robust ecosystem footprint, developing ecofriendly products can help build customer trust and loyalty, as it is paramount in this current business climate of disruption. In some countries, it is believed that consumers are becoming increasingly mindful of a company’s sustainability credentials and are prepared to reflect this with their wallets. Individuals are prone to associate themselves with positive initiatives. Therefore, when companies adopt sustainable processes, they build a core customer base.

In addition, companies seek to drive spending and cost reduction in each value chain, while maximizing business value. Corporate sustainability offers the opportunity of lower costs from more efficient resource use in an organization. For example, in a developing country where electricity is not stable, the consumption of petrol is usually high. This source of electricity is more costly than alternative sources like solar or wind power. However, few people in Nigeria use solar power due to little or no knowledge of the technology. As renewable energy sources displace fossil fuels like coal and gas, it is becoming increasingly cheaper to choose wind and solar power for production in Africa. With the inevitable transition away from fossil fuels, it makes long-term economic sense to infuse sustainable practices into business decisions. Furthermore, actions like recycling, waste mitigation in paper (conserving trees and forest habitats), value engineering of products (reworking or developing new processes that use less raw materials, waste less material in production of goods) can generate great impact on savings.

In conclusion, corporate sustainability strategies can help organizations take advantage of sustainable revenue generating opportunities while protecting their businesses against increasing energy costs. Corporate sustainability creates a positive outlook on how customers perceive their brands and products and helps establish a competitive advantage over time. Organizations should work towards creating a future proof plan around corporate sustainability by developing a more dynamic and multi-level understanding of the adoption of these practices.

• Gbemi Adenusi