Sustainable Business Pratices has researched leading literature and collaborated with a number of companies to develop a solid business case for sustainability. The drivers of sustainability identified, highlight the various ways in which a company can be rewarded for investing in sustainability.
At a strategic level this ensures that the company has the capacity to survive and respond quickly to changing business trends. We have also researched robust case studies to support these business drivers. The case studies were conducted in different sectors and industries globally.
The ten drivers of business value are:
- Operational efficiency: eco-efficiencies in manufacturing process leads to immediate cost savings in form of lower input costs and also lowers company's dependence on natural resources whilst improving quality and building capacity.
- Risk management: integrating environmental and social considerations into the decision making framework assists a company to manage its financial, market, operational and strategic risks.
- Market positioning: incorporating sustainability considerations into it strategy and operations allows a company to position itself as a market leader and maintain a competitive edge and strengthen brand value.
- Innovation and learning: innovation around sustainable products and efficient processes will enable companies to build capacity to cater for and exploit future trends and improve customer relations by offering superior product quality.
- Human capital development: employee welfare and development programs along with a supportive work culture can reduce turnover and training costs and increase productivity. Such initiatives also help boost employee morale and strengthen organisational commitment creating the employer of choice.
- Community acceptance/licence to operate: partnering and maintaining a continuous dialogue with stakeholders ensures that the company maintains its license to operate and enables potential liability issues to be addressed early thus reducing potential legal costs. Partnering with the community also helps companies identify new market trends and gain access to sensitive markets.
- Corporate governance: effective corporate governance ensures that the company builds trust with a wide range of stakeholders and has the capacity to respond to future regulations. Improved reputation plays a part in reducing the cost of capital.
- Supply chain management: collaborating with suppliers of both goods and services to address various environmental and social impacts along the supply chain allows companies to realise cost savings and build capacity to respond to changing market demands.
- Access to resources: responsible conduct towards its stakeholders helps the organisation gain access to new resources, even in environmentally sensitive areas, which can serve as a major source of competitive advantage for the company.
- Access to capital/ investor relations: various sustainability initiatives help the company to lower its risk thus lowering its cost of capital. These initiatives help build investor trust and facilitate access to capital to assist in new investment opportunities.
