Beneficial business - Not all corporate giants need to be damaging to the planet.
Giles Crosse tracks down some more equitable ways to make a buck.
Despite many popular conceptions, big business doesn’t necessarily mean corrupt. Whilst there undoubtedly have been many large corporates with little time for either the environment or individuals, sustainable companies are realising the way they treat employees and resources has positive knock on effects.
Increasingly, perhaps due in part to an ever ascending green consciousness, a new breed of companies are now looking to make money from recycling waste, or developing renewable energy streams.
This is no longer confined to the not for profit sector, which has long vouched for the benefits of using social business models to help communities and individuals get a head start. But whilst such firms use their trading status as an illustration of their ideals, plenty more businesses are putting their money where their mouth is.
Business with a brain
The fundamental reality behind more socially and environmentally conscious business is that it stands a better shot at longevity, ultimately making more money than short termist ventures which focus solely on maximum profit making potential.
Businesses which embed sustainability at the heart of their philosophy are therefore more and more likely to play a prevalent role in tomorrow’s economies.
An example of all of this can be found in the UK. Geneco is part of the Wessex Water group of companies, and its business model appears to be rooted in sustainable principles. Mohammed Sadiq heads up the firm.
“Fundamentally we were set up with some high level objectives,” he explains. “We wanted to try and make the company carbon neutral, as part of the wider Wessex plans to achieve carbon neutrality by 2020.”
“Our firm’s role is to spearhead this drive. We treat sewage from over a million people in Avonmouth, we offer biosolids to farmers for agricultural purposes, we take organic waste, we create biogas from sewage sludge and turn it into 36GWH of renewable energy a year.”
This, reckons Sadiq, is sufficient to power around 10,000 homes, and his focus on renewables and how one man’s waste can be another man’s treasure doesn’t end there.
“We produce 20GWH or so of power at Avonmouth, and we are extending our programme for renewable power, aiming to get towards 50GWH.” Sadiq continues.
“However, we also want to be an employee friendly firm. We have a family owned philosophy and this is important to us. We want everyone to be equal, and we want this to resonate throughout the company.”
“We have an open door policy and we aim to do the right thing, and that concerns both employees and the environment.”
Business for the people
“Sustainability is not just about a green thing or about the environment,” Sadiq remarks. “If you don’t have a successful financial case then your business is financially flawed, and you are not going to make any meaningful contribution, because you will be out of business.”
“So we want to make honest profits and ensure the profits we make are dealt with in a sensible manner. We invest in the Prince’s Trust, mentoring for individuals, and we work within local communities to develop skills.”
“Putting time into this is crucial for us, and it links us into local communities as well which is obviously a good thing. We also work with Resource Futures to help educate youngsters about sustainability and overall sustainable initiatives. This is good work and I want it to continue.”
“We have many initiatives ongoing in Bath, and we are keen to help identify individuals within the community who we can help,” explains Sadiq. “Organisations can offer help, they can make a contribution.”
“But it is very important to understand that we do this because it is the right thing, not out of some sense of spin or PR.”
There is an irony that often the louder companies shout about their credentials beyond mere profit making, the more sceptical commentators tend to become regarding the reasons, identified by Sadiq, as to exactly why firms publicise such ‘sustainable’ agendas.
This may be a reason why Sadiq says he is not normally keen to talk about these elements of his work. But it does seem plain that something of a lateral shift is taking place in business, and there are a few rock solid reasons behind this.
It’s increasingly apparent that as resources diminish, so innovative ways need to be found to create food, products and energy, so opportunities for new companies arise. And as these new companies fundamentally understand how sustainable practices are the very bedrock behind their existence, so the principle becomes more firmly entrenched in the future business environment.
Giants like PUMA have recently revamped their entire sustainability agenda, releasing heavy documents detailing how sustainability will govern their work up to 2015 and beyond.
Some of this work relates to cutting packaging in the firm’s portfolio. ‘As a result of the 65 per cent paper reduction through the “Clever Little Bag” concept PUMA will reduce water, energy and diesel consumption on the manufacturing level by more than 60 per cent per year.’
‘In other words: approximately 8,500 tons less paper will be consumed, 20 million megajoules of electricity saved, 1 million litres less of fuel oil used and 1 million litres of water saved.’
The Business for the Environment Summit started 21 April 2010 in Seoul. This is the world’s leading international conference for dialogue and business driven action for the environment. It will include a ‘Business and Biodiversity Report, UNEP’, and Al Gore will speak on ‘Our Choice: A plan to solve the climate crisis’.
More and more widely, it’s understood that business has little choice but to become sustainable, to survive in a future climate where short termist economic principles are no longer going to pay dividends.
If we can make sure we deliver the people centric aspects that such an approach can offer too, we will be well on the way to offering a far more positive future for both tomorrow’s employees and business leaders.
What are your views? Not sure? Read the resources below for more information. Add your comment below. We welcome your thoughts and proposals. Not a Planetary Citizen? Sign up to Our Future Planet today!
Resources:
Yves Béhar And A Whole New Packaging System for PUMA
History of Sustainability - AN OVERVIEW OF PUMA’S ACTIVITIES AND INITIATIVES
PUMA S-Index Fact Sheet - sustainability-index for product and packaging
PUMA S-Index
