Continued Importance of Marketing “Sustainability” and “Being Green”!

Sustainability in 2010 is becoming more important and continues to rapidly change the business model of today’s organization.

However, most experts appear to agree that the term-sustainability- is terrible weak as its interpretation is extremely broad and non-transparent. Sustainability was first defined in 1987 by a United Nations Commission that characterized sustainable development in this way: "Sustainability is development that meets the needs of the present without compromising the ability of future generations to meet their own needs." One of the recent trends is to define sustainability as the “integration of economic prosperity, environmental health, and social equity.” This balancing of social, economic, and environment responsibilities is also referred to as “green business”. It is not completely accurate but for simplicity “sustainability” and “green business” perspectives have become interchangeable. A clear definition of sustainability is itself a work in progress. Less experienced marketers tend to focus upon sustainability’s relationship to brand enhancement while a wider scope addresses it as an integral part of value creation and the value chain.

An organization that focuses upon being “sustainable” is one that is an environmentally responsible so that its products and services contribute positive environmental impacts. One of the basic assumptions underlying almost any of the definitions of sustainability is that environmental considerations have to be entrenched in organizational decision-making. They need to adopt environmentally sound business principles and translate them into action. This means organizations must go the extra mile to examine the environmental consequences of every aspect of your operations and be included as part of your strategic business or marketing planning. At each phase of a product/ service life cycle, it is vital to identify exactly how you can reduce your company’s footprint and have a positive impact on the environment. The time has come when organizations are held responsible for both their ethical/social and environmental practices through authentic sustainability. The definition of sustainability must represent the core values and culture of your organization. Every organization can establish its own “sustainable” principles based upon a company’s mission, business model and corporate values.

I read a recent survey conducted by McKinsey & Co. that concludes that “the lack of a fully defined and unilaterally agreed upon definition of sustainability is discouraging CEOs from effectively making it a conscious focus at companies.” However, over fifty percent of the approximately two thousand CEOs indicated sustainability is very or extremely important in product/ service development, brand reputation and overall strategic planning. The top priority indicated for sustainability in their organization was related to improving corporate reputation. However, it also showed that twenty percent do not possess an agreed upon definition of sustainability and about twenty-five percent incorporate it into day-to-day business strategy.

There are a number of lists related to organizations that are very good at being “green”. One example is the Global mutual fund Portfolio 21 in Portland, Oregon. It has invested in and searched the world for organizations that demonstrate an explicit commitment to environmental business practices, such as designing ecologically superior products, using renewable energy, developing efficient production methods, and reducing greenhouse gas emissions. Portfolio 21 has reviewed more than 2,000 companies worldwide. It invests over $300 million in 10+ companies across 20 countries. They selected their ‘Top 10 Green Companies have been selected based on their environmental performance. Obviously, all of these organizations have integrated sustainability into their corporate culture and business model. If you go through and research each one, you will find variations as to their definition of sustainability.

Autodesk: Autodesk software products decrease waste and impacts of design processes by reducing paper consumption and encouraging superior design.

East Japan Railway: It has introduced reduced-weight railcars, developed the world's first hybrid prototype train, is installing solar and wind systems at some of its "eco stations" and is reducing the carbon dioxide emissions of the entire transport system.

Henkel: It was the first company to offer a phosphate-free detergent and produces a wide range of bio-based detergents and adhesives, reducing the company's reliance on fossil fuels, as well as potential environmental health hazards. All new products are required to contribute to sustainable development.

Itron: This U.S. energy management company provides services for nearly 8,000 utilities worldwide.

Natura Cosmeticos: A Brazilian cosmetics company focusing on the sustainable use of natural resources and respect for local cultural traditions, Natura establishes partnerships with rural suppliers, indigenous communities and family farm groups.

Potlatch: A U.S.-based integrated forest products company that is emerging as a leader in the domestic sustainable forestry industry. The company recently achieved Forest Stewardship Council (FSC) certification for all its forestlands (approximately 50% of the company's total fiber needs).

Red Electrica: As Spain's leading power transmission company, and is helping to move Spain in becoming the second-largest European wind-power producer.

Sharp: Sharp is the world's largest producer of solar cells and is one of just a few industry leaders to support a solution to e-waste in the United States. Sharp classifies its manufacturing facilities as "super green" or "green."

Umicore: Based in Belgium, Umicore is the world's leading recycler of precious metals. Examples include materials for rechargeable batteries, fuel cells, and auto catalysts.

Vestas: Vestas, a Danish company, develops, manufactures, and markets wind energy products. This company has a clear sustainability strategy based on manufacturing equipment and operating facilities for the renewable energy sector.