- Corporate Sustainability
- Energy Efficiency
Sustainability Initiatives Require Enterprisewide Changes
Market leaders are making commitments and investing in sustainability strategy. There is increased interest among corporations to become more environmentally sustainable, with a variety of goals targeting reductions in carbon gas emissions, limiting waste and promoting recycling efforts, minimizing water and energy use, and promoting ethical sourcing of supplies. Incorporating sustainable practices into business processes is now a critical strategic priority given changing consumer and investor preferences, a patchwork of state and local regulations, and the heightened risk of climate-related incidents on global supply chains. Yet, despite the increasing number of companies pledging to reduce their environmental impact, implementing successful enterprisewide sustainability initiatives remains a significant challenge.
Corporate Changes Afoot
Land O’Lakes and Mars Wrigley held an idea generation event in May 2019 as part of an effort to promote sustainability in the dairy industry. Both companies are seeking to expand their products and services to reduce greenhouse gas emissions on dairy farms. At the event, proposals were judged by experts from both companies as well as agricultural retailers and dairy producers. At least one proposal is already set to be piloted on a Land O’Lakes dairy farm. The dairy sustainability project is part of Mars’ $1 billion investment in sustainability, which involves tying sustainability to the company’s long-term strategic plan and operations.
Implementation Is Crucial
Successful implementation of sustainability initiatives requires enterprisewide changes that affect every aspect of the business, from financial decision-making and procurement to strategy and marketing. To promote corporate sustainability effectively, leaders must embed sustainability as a key consideration in all business processes. Areas where companies are making changes to achieve their sustainability goals include:
- Investments in energy efficient technologies
- Supply chain impact assessment and program development
- Reorienting marketing and sales strategies
- Recalibrating strategic decision-making frameworks
Current trends are driving interest in corporate environmental sustainability, key barriers preventing companies from effectively operationalizing sustainability projects, and examples of successful corporate environmentally sustainable practices. For more information, keep an eye out for Navigant Research’s upcoming report on the topic.