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GE, for example, placed early bets on climate change: in , before Al Gore and Hurricane Katrina made this a top-of-mind issue, the company resolved to double its research investments and sales in clean technology. Other companies too have found instructive ways to build sustainability into drivers of value. Most companies creating value through sustainability look first to improving returns on capital, which often means reducing operating costs through improved natural-resource management such as energy use and waste.
As a result Dow, with a 20 percent reduction in absolute greenhouse gas emissions, has gone well beyond Kyoto Protocol 6 6. Companies are also driving down costs by systematically managing their value chains. Moreover, companies can add value by improving employee retention or motivation through sustainability activities or by raising prices or achieving higher market share with new or existing sustainable products. Whole Foods Market, for instance, raised its sales by 13 percent a year from to , in an economy experiencing single-digit growth. Companies that rigorously pursue sustainability also regularly revisit their business portfolios to determine the potential impact of trends such as existing or potential climate change regulations that could lead to new growth opportunities.
Waste Management, for instance, reinvented itself as a provider of integrated environmental offerings by adding waste reduction and waste-to-energy solutions to its services. Companies also screen rigorously for unmet needs created by sustainability trends in line with their strategies and identify potential customer segments. ArcelorMittal, for example, embedded sustainability in its organizational design through a department for scientific analyses of the life cycles of steel products.
GlaxoSmithKline is looking not only to philanthropy but also to its business model in addressing diseases in less-developed markets. Better management of risks that arise from sustainability issues begins with detecting key risks of operational disruptions from climate change, resource scarcity, or community issues such as boycotts or delays in getting permits for manufacturing. The mining giant BHP Billiton managed its exposure to emerging regulations by systematically reducing its emissions.
The choice for companies today is not if, but how , they should manage their sustainability activities. Companies can choose to see this agenda as a necessary evil—a matter of compliance or a risk to be managed while they get on with the business of business—or they can think of it as a novel way to open up new business opportunities while creating value for society. McKinsey uses cookies to improve site functionality, provide you with a better browsing experience, and to enable our partners to advertise to you. Detailed information on the use of cookies on this Site, and how you can decline them, is provided in our cookie policy.
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Interview Global forces shaping the future of business and society. We realize that environmental problems like climate change, resource depletion, and ocean plastic are increasingly serious social issues of global concern. As a global company, Sharp is dedicated to helping solve such social issues.
Through this vision, we are taking on the challenge of helping realize a sustainable global environment by providing the world with clean energy, while at the same time minimizing the environmental impact caused by greenhouse gases, waste, and other by-products of our business activities. Under SHARP Eco Vision , we have set challenging goals in three fields of action: 1 climate change, 2 resource recycling, and 3 safety and security. Sharp has up to now striven to use less energy in its business activities and to make products that are increasingly more energy efficient so as to reduce the amount of energy consumed by households and society as a whole.
It is precisely because Sharp makes products that use electricity that we have a responsibility to reduce the environmental impacts resulting from this electricity use.
Enjoyed this article? Paper and board. Post a Comment cancel reply. By we will have a positive impact on the lives of 5. While corporate gifting may be perceived as a small act of appreciation, it can go a long way in encouraging job satisfaction and work efficiency. Reusable, recyclable or compostable plastic packaging.
It requires substantial investment up front to gain scale fast. The opportunity will not last forever. We have to be represented in as many places, with as many products, as quickly as possible We think our biggest challenge is one of execution in the face of insurmountable opportunity. As traditional accounting functions change or disappear, redefining finance's agenda in an e-business world takes on a new urgency. They, and the authors at PricewaterhouseCoopers, provide an invaluable guide to leveraging e-businees, offering strategies, tools, action plans and insight.
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