Top Sustainable Business Strategies from 2012

In case you missed it, this blog on Sustainable Business Strategies for 2012 was published on Triple Pundit on January 4th.

Sustainable Future
As you go about developing or revising your sustainable business strategies, it is worth reviewing last year’s key developments in important areas of business strategy.

They will only grow in importance this year.

Rather than focus on particular stories ably summarized elsewhere, here are key strategic themes and the underlying research that you can use as practical guidance.

Sustainable Business Strategies: Food and Water

Food and water, along with energy, comprise a resource nexus that will impact sustainable business strategies for all firms, given their central role in the economy.

Feeding the future world when water is constrained will be a daunting challenge . Food production will need to increase by 70% by 2050 in order to feed the projected global population of 9 billion.  Extreme weather will exacerbate the production of food and increase food prices disproportionately affecting developing countries where 70% of the household budget goes to food (the US figure is 13%).  Rising food prices have pushed 44 million people into poverty globally just in the past two years.  One tragedy is that smallholder farmers comprise 50% of the undernourished, even as they grow food themselves. Unfortunately, the prices of staple foods could double by 2030.

Corporate SOS: Business Value of Sustainability

In 2012, there was a sea change in the evidence for sustainability’s business value, especially when it comes to the market value of the company.

Key Sea Change Takeaway: Sustainable companies perform better than other companies over the long-term. This is true whether you measure stock market or traditional P&L performance.

Clearly, the business case for a particular sustainability project depends very much on the project and the company. In particular, it’s easier to quantify the business value for many efficiency or waste reduction projects.

Sustainability Champion: Common Ground on the C-Level

As a sustainability champion, one of the very first challenges you will face in making sustainability central to your business is: “how should my organization think of sustainability?”

For a field that has been around for about a decade, it’s amazing how many different views there are on what it really means. Nearly every business function has its own perspective on it. One function thinks it’s all about carbon emissions and climate change. Another, that it’s all about energy efficiency and renewable energy.