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The Truth about Sustainability Putting sustainability at the core of a business is vital for long-term survival. Criticaleye speaks to leaders versed in the subject to find out how it can be achieved alk of embedding sustainability “There’s a difference between the formal Tinto business strategy is all well policy, the stated commitment and the and good, but executing on that is an ability to implement effectively on the altogether harder proposition. The Sustainability ground where it counts, where it affects corporates that lead the way adopt a people’s lives and the environment,” he longer-term approach to doing business, is not about tree says. “Often, there’s a real failure in the discussing issues such as human rights, implementation, but the companies that the environment, labour and anti- hugging but are doing it well are starting to align corruption when making decisions. rather good these concepts.” As a result, sustainable thinking is ingrained in the plans, policies and business sense Peter Lacy, Global Managing Director for procedures of the organisation. Strategy and Sustainability at Accenture, where everyone says: “Sustainability should be managed The United Nations (UN) Global can benefit not as a standalone, isolated corporate Compact, the world’s largest voluntary responsibility, but as an integral part of sustainability initiative for corporates, business strategy. It is a chance to manage has made a difference. Part of the success reputation and grow revenue, while is because it’s based on concepts that then focusing on the tough work of understanding risk more effectively.” businesses are familiar with, such as due truly integrating and embedding it at diligence and risk management, but they’re every level.” It’s a case of companies beginning applied in the context of human rights. to integrate sustainability into their Despite its achievements, a large number Leonard Seelig, Non-executive products and service mix, in terms of companies still have a long way to go. Chairman at APC Technology Group, of R&D, marketing and branding. a provider of sustainable technologies, “Businesses such as Vodafone and At the last UN Global Compact Leaders echoes this point: “It needs to become Unilever are also putting pressure on Summit, the majority of the executives part of the DNA of all companies their supply chains to drive significant attending recognised that sustainability and be driven from the top. If senior environmental gains and efficiencies was important for the future of their executives see it as being critical to the in their operations,” Peter says. businesses. However, according to Chip long-term survival of the business, the Pitts, Criticaleye Thought Leader, message starts filtering down through LEAN AND GREEN Lecturer in Law at Stanford Law School management and to the front line. and Professorial Lecturer at Oxford The idea of a business being able to do University, they need to take their All staff should be encouraged to think more with less has gained real traction initiatives to the next level. about it on a day-to-day basis and how it in the boardroom. Sandy Stash, Group might impact the survival of their jobs.” VP for Safety, Sustainability and External He says: “Some companies, mistakenly Affairs at Tullow Oil, says: “At the heart in my opinion, think they’re doing A common problem is a failure of sustainability is efficiency. An efficient everything they can, but a lot of the to align different parts of a business. business is a sustainable business.” time they aren’t really. What they’re For instance, the CSR department doing is often not completely in accord won’t have contact with procurement, When it comes to best practice, Sandy with the current human rights norms, and different incentive structures can says that companies from different or environmental sustainability norms. encourage conflicting behaviour. For industries can benchmark ideas: “We Chip, it’s all about execution and unless have learned a lot from the airline industry. The key to getting sustainability right the thinking around sustainability is You’d think there’d be no similarities is really getting the commitment from joined-up, the impact a company can between running oil platforms and the top and at all levels of the company, make will always be limited. onshore oil facilities and airplane; yet www.criticaleye.net The Truth about Sustainability | 2 in the psychology and practice of running “Businesses need to execute on a safe and sustainable operation, there’s integrated leadership,” says Chip. a lot our industry can take on board.” “That means sustainability is At the heart embedded horizontally and vertically The main barriers to sustainable thinking throughout the extended enterprise. within corporates often come from basic of sustainability misconceptions and short-termism at is efficiency. An “Everyone needs to understand that board level. it’s the ways things are done... efficient business The companies that don’t get this Kevin Craven, CEO of UK Central is a sustainable are truly the walking dead, they Government at Serco Group, an just don’t realise it yet.” international outsourcing company, says: business “Sustainability is not about tree hugging but rather good business sense where everyone © Criticaleye 2015 can benefit. Both clients and employees are really looking hard at businesses which unethical manner, Enron perhaps being genuinely integrate sustainable practices a good example here, you will be forced into their working ways – you cannot out of business.” Featuring Commentary From: fake this by greenwashing your polices... Kevin Craven Ultimately, for sustainability to be taken CEO “Your planning horizons cannot be seriously, senior executives have to UK Central Government about the one-year or even the three- demonstrate how it will help deliver Serco year cycle – they need to be longer so overall business targets. Peter Lacy that the impact of your business on a Global Managing Director Strategy & Sustainability community or the environment can Andrew McCallum, former Director of Accenture be considered. Planning, rather than Corporate Affairs and Business Support for Gareth Llewellyn reacting, is always more economical.” Dana Petroleum, comments: “From a risk Former Executive Director, perspective, companies need to identify Safety & Sustainable Gareth Llewellyn, former Executive the social, environmental and economic Development, Network Rail Director of Safety and Sustainable considerations that might impact the Andrew McCallum Development at Network Rail, says: successful delivery of the business strategy. Former Director of Corporate Affairs and Business Support “Being part of a sustainable business is Dana Petroleum about making money. From a commercial “There’s definitely a role for businesses Chip Pitts perspective you have to be profitable, to be involved in the communities where Criticaleye Thought Leader, otherwise you’ll go out of business and they operate. Helping to tackle relevant Lecturer in Law that can have quite a big economic and social and environmental issues should Stanford Law School social impact on those who work for you. benefit the company and the community.” Leonard Seelig Non-executive Chairman APC Technology Group “You also need to make sure that whatever If a sustainable approach is going to be product you use or manufacture doesn’t more than an adjunct of the organisation, Sandy Stash have a major or persistent environmental it needs to be driven from the top. After Group VP, Safety, impact, because if it does you’ll be all, there is little point in discussing Sustainability & External Affairs, Tullow Oil regulated out of existence whether you long-term intentions for society and like or not. The other piece to this is the the environment when the culture of a Contact the contributors through: social impact: if society believes that business is very much about hitting www.criticaleye.net you’re delivering your business in an short-term targets. www.criticaleye.net The Truth about Sustainability | 3.

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