Create a Sustainable Business Strategy
Climate change, income inequality, and social injustice are three of the biggest issues we must face today. But it doesn't have to be an either-or situation: you can see your business thrive while helping address these massive challenges.
Corporate sustainability can be a competitive advantage for private sector firms. It presents an opportunity for new business models and value creation by becoming a purpose-driven firm that is simultaneously solving for big problems like climate change. By creating a sustainable business strategy, you can leverage your resources and capabilities to make a meaningful impact on the world.
There has been a growing demand by leadership for sustainability strategies in recent years. A new framework has emerged from Harvard Business School for sustainable business strategies and stakeholder management and is proving a popular tool for business leaders. Case studies highlight how companies innovate and take on system level change to lead industries to new standards in meeting their sustainability goals.
By drawing from the Harvard Business School program, this resource outlines our practical, proven approach to sustainability strategy success based on relevant, real-world experience. Let's jump in!
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Access your impact
The first step in developing a sustainable business strategy is to identify what impacts your company has on society and the environment. This includes your carbon footprint, ecosystem degradation, or any other environmental or social issues that may impact your business model now or in the future. This benchmarking activity means looking at every aspect of your operations and assessing how it affects local communities, workers, consumers, suppliers, and other stakeholders. It also means understanding how production, manufacturing, and distribution processes can impact the environment, as well as any potential long-term risks. It may require a considerable amount of time and effort, but the greater insight you gain into your current impact, the more powerful and robust your company's sustainability strategy will be.
Examine new business models
Once you’ve identified the impacts of your operations, it’s time to explore how they can be addressed in a way that is beneficial to your business. This includes examining existing and emerging business models, such as circular economy or shared value approaches, which have the potential to give a competitive advantage while reducing environmental impact. Two models to evaluate are:
The Circular Economy model is based on the principles of reducing, reusing, and recycling. It focuses on using resources more efficiently, creating closed-loop systems that keep materials in circulation for longer periods. Going circular can help businesses unlock new sources of value by reducing waste and increasing resource productivity.
The Shared Value model is an approach to business that focuses on creating economic value in a way that also creates value for society. It involves looking beyond the traditional view of shareholder returns and instead focusing on the connection between societal needs, corporate performance, and sustainable development.
Consider ways these or other sustainable business models can help unlock new sources of value and create positive outcomes for your business and the world.
Consider the bigger picture of the politics and social landscape
Businesses don’t exist in a vacuum, and the political, social, and economic landscape can play a major role in your success. Look at how regulations, trade agreements, stakeholder expectations, access to resources, and markets are impacting your operations. Also, consider how current trends are likely to shape the future of your business.
Convince key stakeholders and leaders
Communicate the importance of sustainability and social justice to a range of stakeholders, from customers to suppliers and government bodies. Demonstrate how your company is creating value for all involved measurably. Focus on articulating the specific benefits to each stakeholder group to build support and consensus for your strategy.
In addition, it’s important to make sure sustainability is integrated into all areas of your business. This means going beyond key leaders and engaging with staff, operations teams, and suppliers. Make sure everyone understands their role in the sustainability endeavor and how it can benefit them personally and professionally. It also means having systems in place to measure progress and track performance over time.
Creating a sustainable business strategy requires a long-term commitment, as well as the flexibility to quickly adapt and adjust based on feedback from stakeholders or changes in the external landscape. Anticipate potential shifts in customer demands, market dynamics, regulations, and technology and use that knowledge to your advantage. Be sure to document any progress so you can show stakeholders the value of your strategy over time.
Team up with other companies
There is power for businesses in collective action. While not every company can solve global issues by itself, collectively businesses can make an impact on social and environmental issues. Look for ways to join networks that leverage collective effort for broader transformation.
Many companies are forming industry-wide partnerships to reduce emissions, share knowledge on sustainable practices, or advocate for laws and regulations that support the health of our planet. For example, a collective of restaurants could work together to reduce waste, or a network of businesses in the same industry could join forces to improve supply chain transparency.
There are some well-organized groups already operating that can give you a head start. Start by researching initiatives like the Carbon Pricing Leadership Coalition, Climate Action 100+, or other industry-specific organizations.
Develop goals and strategies for change
Once you have identified the actions that need to be taken, develop goals and strategies for change. This will involve setting concrete objectives and establishing measurable targets for success. For example, if you want to reduce emissions by 20%, set a timeline in which this should happen and outline what needs to be done to achieve it.
In addition to setting goals, create measures and systems to track progress over time. This could include setting KPIs related to emissions reduction, energy efficiency, resource utilization, waste management or other areas of focus. Having a strong understanding of the metrics can help you stay on track for meeting your targets.
Finally, put into place structures and processes to ensure that everyone is on board and to ensure transparency. This could include regular assessments with stakeholders or setting up an oversight committee to review progress.
By taking these steps, your business can create a sustainable strategy that goes beyond words and into action. By recognizing the importance of sustainability and social justice, engaging stakeholders in collective efforts, developing goals for change, and putting
Become a purpose-driven leader
Up your game as a purpose-driven leader. Having a strong understanding of sustainability and social issues can pave the way for you to develop into an effective leader. Take advantage of available resources within your company or network, like mentorship programs, professional development seminars, or community engagement initiatives. You will gain knowledge and skills that can help you develop as a leader while also making a positive impact on the world.
Developing a purpose-driven mindset can help you stay focused on the bigger picture and work towards the greater good. Take the time to reflect and assess your own values, what motivates you, and how these connect to your purpose. This will help to inform decisions about careers paths or job opportunities that align with your mission.
Additionally, take advantage of any opportunities to get experience in the field. This could be through volunteer work or internships that give you a chance to explore different areas of sustainability and social justice.
Finally, stay up-to-date on industry trends and developments as they relate to sustainability and social good. This will help ensure that you are equipped to make well-informed decisions while also staying ahead of the curve.
By getting involved, taking advantage of available resources, and gaining skills and knowledge, you can become a powerful advocate for change as a purpose-driven leader. This will not only help you create a positive impact but will also give your career an edge in this increasingly important field.
Conclusion
Sustainability is not just a trend; it’s a movement. Making sure your business has the right strategies and systems in place will help you achieve the success that benefits both people and the planet. Engaging with stakeholders, setting clear objectives, tracking progress over time, and establishing structures to ensure accountability are all important pieces of the puzzle. With dedication and effort, you can become a powerful leader in purpose-driven progress.
