The sustainability landscape for business in 2012 looks the same as 2011; consumers are not spending freely, customers are looking for value and ethical products. Business customers are facing pressure from consumers and stakeholders to report improvements in their own sustainable performance. Resource efficiency; using less is good for the environment and saves money. Compliance is always essential- risk is increased as there are more extreme weather events and natural disasters that can impact businesses.
It’s been a tough year for most businesses, although a few seem to be doing better than most.Starbucks and Costa coffee saw big increases in their sales this year. Starbucks reported record 4th quarter fiscal results and Costa had a sales increase of 25% in the last six months. Sales of free trade products are up -Chocolate by about 40%. The Co-op issued a report on ethical product sales showing increases of 9% in the last year popular choices included Green funerals and Micro-generation projects. Technology and gadgets have had a good year judging by the fiscal reports and the massive queues outside mobile phone shops for the latest Apple iphones and ipads in my local shopping centre. This has been coupled with an increase in companies offering to recycle your phone. In hard times “feel good” products and services are doing OK.
There have been a few surveys in 2011 highlighting the preference of consumers for more environmentally sound products. A number of organisations have started to publish the carbon footprints of their products. In a recent survey by KPMG* 95% of the G250 largest global companies were reporting CSR which is good. 60% of Chinas largest companies are reporting their CR metrics. Large enterprises are going to put pressure on their supply chains to report either during the bid process or when they review their supply chain.
Organisations in the Government, pharmaceutical, finance and insurance sectors are responding to pressure from their stakeholders to produce quality data. The questions in bids & tenders are becoming more demanding in relation to data on scope 1 & 2 and scope 3 emissions and governance areas such as employee diversity. Reporting to the CDP or GRI and an EMS*. As well as demonstrating engagement with communities through volunteering and community projects. This will require respondents to be able to give qualitative data in response and show they have policies and an EMS in place. Some companies have made it mandatory for their suppliers to report: Walmart requires suppliers to report to the CDP.
Why pay for you don’t need- Otherwise known as resource efficiency. Saving money is going to be high on organisations to do lists (expected increase 8% + CRC tariffs) as long as it’s easy. Saving money on energy is using a good place to start either by re-negotiating the contract or engaging employees to turn the lights off. Information Technology accounts for 3% of UK emissions.
Reduce IT costs and emissions through Cloud computing. Cloud means IT without the need for massive infrastructure investment. . Running IT from the cloud is cheaper, more efficient and can be more innovative. Experimenting with software solutions on a cloud model can mean minimum investment and pay as you go.
Extreme weather events will make Disaster recovery systems essential. More customers are asking their suppliers about their plans for managing business risk. The Last 30 years has seen an increase in the advent of extreme weather events from 133 per year to more than 350 now- droughts floods and tornados. The Guardian coined the Phrase “Global Weirding” This can also bring opportunities as it is expected the south east of England will become drier leading to more work for construction companies repairing subsidence damage.
Buying consumer goods on leases and returning to manufacturers or suppliers for disposal or re-use could be a way of giving access to consumers with limited funds and allowing the resources to be re-used- Products as a Service?
2011 saw the introduction of the UK Bribery & Compliance act changing the way some businesses responded to offers of corporate entertainments. The act makes individuals accountable as well as corporations. Some organisations have introduced maximum values on the gifts their executives can accept £50 seems a popular figure. This could offer a new opportunity to build relationships with customers and suppliers:
Instead of saying come to our box at Ascot
Say; we are going to re-develop a community garden would you and your team like to help?
Sources
Extreme Weather events- Scientific American
* KPMG International Survey of Corporate Responsibility Reporting 2011
