There is no doubt that we all need to act on becoming more sustainable organisations now rather than later. The world is crying out for us to behave in a more sustainable way both environmentally and in terms of social impact.
So what is stopping us progress as fast as we would like?
First of all, let’s be honest, the road from strong agreement to actual change is really hard. The reason is simple; the demands of everyday business means we are pulled in different directions just trying to make ends meet for our organisations and our people. It is a simple fact that most change initiatives don’t make it off the starting blocks but get filed in the ‘must get onto tomorrow’ part of our brains, only never to see the light of day.
The second reason is just as fundamental. There is a perception that being more sustainable costs money.
Or does it…..?
We believe this is the wrong assumption and there are four really important forces at play that mean an oganisation’s profit directly benefits from strong Environmental and Social Governance (ESG):
- It can benefit top line revenue. Most large organisations are increasingly adopting a sustainability stance and seeking certification as proof of their drive and ambition towards their goals. Many of these accreditations in turn require the organisation to prove they are considering their impact not only in terms of their immediate resource usage and own social policy but also those within their supply chain. As more and more at the top of the tree adopt such checks, then it will become increasingly frequent that each organisation’s own accreditation is sought to simplify the process and push the effort along through the chain. Put another way, if you can’t show your accreditation, you will not be on the pitch or preferred supplier list. Furthermore, as mindsets shift then the choices made in the process will increasingly impact decisions on who to work with regardless of badges and certificates. Those who can prove their sustainability strategy and action will increasingly benefit from more revenue, whether selling products and services B2B or B2C.
- Driving efficiency saves money. Less travel, less electricity, less rent, less fuel, saves costs. Looking at more lean manufacturing processes, adopting robotics and AI, encouraging more working remotely, driving down wastage of electricity all save money and the larger an organisation is, the more savings can be had. Sustainability and driving efficiencies in the bottom line go hand in hand.
- The cost of talent. Millennials and Gen Z are demanding more from the companies they want to join. They want to feel they are not just working to pay the rent but also working towards a greater purpose. This of course radiates far beyond these generations. Purpose-led organisations achieve a far better success rate in attracting the best talent and crucially in retaining that talent in the long term. Unintentional staff turnover is a huge cost to organisations both in terms of time and money needed in recruitment as well as in training, knowledge loss and team motivation. The right strategy and approach to sustainability is key to building and keeping a strong workforce.
- Investors like organisations with strong ESG. According to a 2019 Harvard Business Review article by Robert G. Eccles and Svetlana Klimenko – in 2006, when the UN-backed Principles for Responsible Investment (PRI) was launched, 63 investment companies (asset owners, asset managers, and service providers) with $6.5 trillion in assets under management (AUM) signed a commitment to incorporate ESG issues into their investment decisions. By April 2018, the number of signatories had grown to 1,715 and represented $81.7 trillion in AUM.’ Companies with an established and proven track record in Environmental and Social Governance attract more investment.
So pushing change really does make financial sense after all. It is critical though that intent does not just sit as a promise but manifests itself in actual action. Many companies have fallen foul of announcing plans and strategy only to fail in living up to the promise. This erodes trust and alienates customers as well as staff. It is time for a clear and united strategy, advocacy for change and actual effective change. The trick of course is to align your ESG with multiple aspects of your broader strategy to grow market share, retain the best talent, keep lean and attract investment and push real momentum behind the change.
This is where Room 42 can come in. We are in essence a facilitation company using design thinking programmes to help companies solve problems, adopt change and innovate in new ways. It is often so difficult to break the inertia, get the time, get the buy-in for change or just come up with new ideas under the status quo and noise of everyday life. Outside facilitation is often the key and this is where we operate. We look to be the catalyst to break the norm, actively facilitate new strategy and ideas and get people to the action quicker, be more united in direction and with greater advocacy from within. Think of us as a crack team who you can call on to get things moving where you spot a need. In this case, the need is to get going on becoming more sustainable for the future.
We are committed ourselves to do work that benefits people and planet. For example, we are offering heavily discounted support and a number of free workshops within the Amplifi group to help businesses in and around Tunbridge Wells on their drive to become more sustainable.
Read more about our approach and full range of programmes.
To enquire about our programmes simply email knock@room42.co.uk, describe your organisation and what your challenge is you want to address and let’s start the conversation.
Time is of the essence.
