Making sustainability stick
The path toward environmental sustainability is an arduous one for many organizations. Too often, sustainability doesn’t stick. In a recent study, Bain & Company reported that only 12% of corporate transformation programs achieve their goals. For sustainability transformations, that number is even lower at only 2%.
Why is sustainability particularly challenging for corporations? Sometimes, these initiatives are simply brushed aside as another program-of-the-month whim. More often, employees may feel forced to choose between sustainability and business targets, and in difficult economic times environmental concerns get pushed to the backburner. This kind of short-term thinking paralyzes modern businesses and limits success on game-changing social initiatives that could make a big difference to employees, consumers and even the bottom line. As leaders, we’re conditioned to be shortsighted. We don’t see the long-term benefits of sustainability, because we’re too focused on the upfront cost — and what it means for quarterly reports. But sustainability can create a competitive advantage rather than a financial drain.
Companies like Patagonia, Seventh Generation, and New Belgium Brewery have made a name for themselves as sustainable brands. For these industry leaders, preserving the environment has been integral to their business model from inception. But more and more conventional corporations are rethinking sustainability and setting aggressive targets for their environmental impact. One of the earliest examples is Interface, an American carpet tile company. From 1973 to 1994, founder and CEO Ray Anderson steadily grew Interface into the world’s largest carpet manufacturer. But in ’94, before sustainability became a buzzword or a selling feature, Anderson had an epiphany that set Interface on a path to becoming a leader in environmental business practices. Since then, the company has shifted to 84 percent renewable energy (96 percent in the Americas). Interface has cut greenhouse gas emissions by 92%, water use by 75%, and waste by 66%. It uses LEED certified buildings and source recycled fibers and bio-based materials for its carpets. Moreover, Interface has saved hundreds of millions of dollars by eliminating wasteful practices.
There are many lessons to learn from successful sustainability initiatives like Interface’s. Here, we boil them down to seven main points.
Start at the top. You need top-down commitment for a successful sustainability transformation. In fact, visible executive support is the best predictor of success. Mid-level managers may be hesitant to change longstanding practices without the urging of their CEO.
Sustainability wasn’t even on Ray Anderson’s radar until 1994 when he read Hawkins’ The Ecology of Commerce. He was so inspired that he immediately assembled an environmental task force and set into motion the largest sustainability turnaround in history. Initially, his executives thought he was crazy, and investors even threatened to dump Interface stock, but Anderson was adamant. Interface’s success would have been impossible without the enthusiasm and the willpower of Ray Anderson, who, despite pushback from his employees, prioritized his sustainability goals.
Integrate it. Sustainability initiatives are most successful when they are strategic and selective. Make sure your goals are on-brand and fully integrated into organizational processes. Talk with stakeholders and employees to get a sense of what resonates with them. If you have buy-in from all levels, it will be much easier to stick to the plan.
Interface completely redesigned its organization to be more sustainable. Anderson relied on a wide range of leaders in his team as well as external experts, a group he dubbed “the Eco Dream Team.” Further down the line, employees were encouraged to prioritize sustainability, and rewards were linked to their environmental performance.
Reframe it. Employees tend to see sustainability initiatives as costly, nonessential, and non-urgent, but successful sustainability leaders make the business case for sustainability. Start small, with initiatives that have clear, immediate payoffs to show employees that sustainability is a win-win. By directly confronting the prevailing notion that sustainability is bad for business, we can educate employees and encourage them to facilitate change rather than resist it.
Interface doesn’t treat sustainability as a cost or as a necessary evil but as an opportunity. In shifting its production and transportation practices, Interface has cut out $405 million worth of waste. It turns out renewable energy, efficient transportation and streamlined packaging are good for the bottom line and the planet.
Make a clear public commitment. Many executives resist making their goals public for fear of failure. In reality, public pronouncements create good press, help companies stay on course and foster a shared sense of mission throughout the organization.
Shortly after Anderson’s epiphany, Interface unveiled “Mission Zero,” a plan to eliminate any negative impact on the environment and society by 2020. The company prioritized 7 challenges: eliminating waste, eliminating toxic substances, switching to renewable energy, closing the loop by utilizing recycled and bio-based materials, making transportation more efficient, creating a culture of sustainability and redesigning the manufacturing business model. By publically announcing its goals, Interface was forced to set targets and begin tracking progress toward Mission Zero.
Failure breeds innovation. It might take some trial and error to figure out what works best for your company. But don’t let a failure prevent you from taking risks, even if it’s costly.
Interface had early failures. In an attempt to close the loop on its supply chain, the company tested a recycling process that involved dissolving carpet tiles in a chemical solution to reclaim the raw materials. But it proved to be expensive and energy intensive. In fact, the process actually increased Interface’s environmental footprint, so they moved onto the next innovation. And some innovations take time. After 13 years of effort, Interface released the first 100 percent recycled carpet tile, a feat previously thought to be technically impossible and economically unfeasible.
Measure it. Integrate sustainability into your annual reporting. Measure and assess your outcomes of interest to ensure that you’re hitting your targets. Likewise, hold employees accountable for sustainability goals, and provide incentives for improvement.
Interface releases a sustainability report every year, detailing its progress toward Mission Zero. The company also links employee bonuses to sustainability metrics, and each team is encouraged to cut waste by 10% each year.
And Interface is not alone. In recent years, Unilever, Danone and IKEA have made drastic changes throughout their supply chain, shifting toward sustainable materials and efficient practices. Even Nike, with its less-than-stellar CSR record is emerging as a sustainability leader. The footwear giant uses post-consumer recycled materials in some of its products, has redesigned its packaging material, is eliminating chemical discharges and is investing in green energy.
It’s becoming increasingly clear that sustainability is the future of business. Follow these tips to ensure that your sustainability initiatives are a success.
