3 Steps to Hitch a Ride on the Sustainability Bandwagon
It is hard to avoid hearing the drumbeat of “sustainability” and “ESG” (environmental, social, and governance) everywhere you look. The beat keeps getting louder. You want your company to be ready before the parade rushes by you or, worse, runs you over. How do you ensure that your company remains standing and thrives in the coming decade?
As with the adage about planting a tree, the best time to join the parade was 20 years ago. The next best time is today. Rushing into the road without a plan, however, will not get you the results you want.
Large corporations have been reporting on sustainability for many years. Reporting alone does not guarantee action, but it is a sign that businesses are evaluating their operations. In many cases, they are responding to pressure from stakeholders—investors, financial institutions, governments, customers, and employees. Regardless of the reasons, corporations are sharing more information about their sustainability goals and achievements.
Progress toward reducing the environmental impact of their operations and honoring the needs of all employees hasn’t always been consistent. It often feels like change takes far longer than it should. But at least it is happening, and the pace is picking up.
Suppliers to multinational corporations have a responsibility to help their customers achieve goals for greenhouse gas (GHG) emissions, resource use, and waste management. Sometimes, they won’t get the business unless they meet many environmental and social responsibility requirements.
If you’re a supplier wanting to jump onto the sustainability bandwagon, here is a three-step process.
Step one: Audit your operations
Before setting goals or making changes, you have to know your starting point. That means taking an honest assessment of your entire operations. A thorough audit will show where you are doing well and point out opportunities for improvement.
Evaluate all your products, not merely one you’ve positioned as “eco-friendly.” You won’t be able to convert everything overnight. But without awareness, it’s too easy to close your eyes to the problems that legacy products might be causing. Old equipment might consume more energy than you realize or create unnecessary scrap or hazardous waste.
Consider what is happening at all your facilities, regardless of where they are located. Can you duplicate the operations at the most efficient or most highly regulated facility? Many manufacturers resent regulations that cost time or money, but those regulations might improve the health and safety of workers and the local community.
If you wonder where to start and what to include in an audit, guidelines in certifications and reporting requirements can lead the way. All the aspects listed in the GRI reporting standards, for example, are worth considering. If your company holds an ISO certification, that can serve as a framework for re-evaluating where you stand.
It’s helpful to hear from employees throughout the company. If you’re leading the sustainability audit, let everyone know that you value their insights and experience and listen to what people say. Customers can also provide critical insight. What are they looking for from suppliers? Being proactive and asking about their needs can guide you toward solutions that may position your company as a leader.
Step two: Plan a strategy
It may be tempting to commit to net-zero by 2050 because you’ve heard that is what the world must achieve. Saying it out loud (or in writing) can make the goal more likely to succeed. Without a concrete plan to get there, though, the goal often does little good. Employees will not be motivated to act on a fuzzy goal nearly 30 years away.
It’s best to break things down into feasible but challenging shorter-term steps. What can you do to get results in six months? Even if it feels like you can’t do much right now, you might be surprised by what you can accomplish when you compress the timeline.
Based on the results of your sustainability audit, you can choose where to concentrate your efforts. Where can you make the most significant difference with the least amount of work or expense? That’s an excellent place to start.
You might have discovered some problems or opportunities that you hadn’t noticed before. What is the first step you can take toward addressing each one? Then, what is the next step? Think about what you can achieve in one, five, or ten years and what support you need to get there.
Step three: Tell the world
Companies often take one of two approaches to publicize their sustainability strategy and progress toward goals.
Some manufacturers make bold, generic statements on their websites and social media saying that they care about people and the environment. These often come with beautiful photos of the natural world or diverse groups of people working together. A critical look at everything the company says and does often reveals little substance behind the claims.
Other companies shy away from any public-facing statements about sustainability or ESG. They are wary about being accused of greenwashing if they say too much, too soon. They say nothing in an effort not to brag about their accomplishments or oversell small steps toward sustainability.
There is a middle ground, and I recommend taking that path. Share your story once you have completed your audit and committed to goals and a strategy to get there. Talk about your growing awareness of the problems and your desire to be part of the solution. Share specific examples of programs that have been successful, even in a small way.
If other companies in your industry or supply chain learn about what you have done to reduce scrap rates and send less waste to landfills, they may be inspired to do the same. When you share positive news, it boosts morale both inside your company and your industry.
You can also share challenges. Perhaps you cannot find suppliers for the materials you need to meet your goals for recycled content. Maybe you want to diversify your board of directors to bring in broader perspectives and find it hard to attract suitable candidates. If you get the message out there, solutions might come your way.
Here’s to hoping that more manufacturers throughout the supply chain choose to make sustainability a top priority. It’s time to develop a strategy, commit to progress, and join the bandwagon.