Sustainability...
In a recent Circle discussion, someone mentioned that they were working towards achieving sustainability for their business. This prompted another member asking what they meant by “sustainability” because they didn’t think they were in the “green” business.
So what do we mean we apply “sustainability” to our business?
Depending on your research, you might find that the word has always had it’s origins in the environmental world. According to the blog post, A Brief History of Sustainability, discussions around the concept of sustainable environmental practices existed around 500 BC. (And we are still working on it!)
The term "sustainability" seems to date back to 1713, with early usage in German forestry practices referring to "sustained yield". (Sustainability: History of the Word & Its Meaning Today)
noun: sustainability
the ability to be maintained at a certain rate or level.
"the sustainability of economic growth"
avoidance of the depletion of natural resources in order to maintain an ecological balance.
"the pursuit of global environmental sustainability"
from Google Search
And there is the link to businesses that are not necessarily “green” focused service or products. After all - don’t we all want to have or be in businesses that have a “sustained yield”?
But sustainability in business is more than just profits. It’s about adopting a "triple bottom line" approach, meaning that you balance the three pillars of sustainability - environmental, social, and economic - known as the "triple bottom line" of people, planet, and profit.
I know, you are asking “Isn’t this what B Corporations are all about?” According to B Lab - yes. However (fancy “but” there), I believe that you don’t have to be B Corp certified. I think we that every good business should be focused on the Triple Bottom Line (TBL).
What does that mean? Here is a brief look at each component of the TBL:
profit
This is more than just the typical measure of profitability. This also looks at “how” you are earning your that profit, such as fair and ethical business practices or by partnering with companies that aligns with their values. It could also include how you are fostering economic wealth in your community (do you shop local, use other small businesses…?).
Measurement Examples: beyond traditional profitability measures, you might also include things like lack of late payments, community investment through partnerships or sponsorships
people
TBL looks at everyone who in impacted by the company: employees, vendors and customers and how you work with, grow/develop and treat those relationships. It also includes how you create value with these relationships through things like volunteerism or supporting a small business vendor.
Measurement Examples: paying a “livable wage”, diversity in suppliers, fair access to products/services for customers
planet
This is what we typically think of - environmental impact. For smaller businesses who aren’t buying carbon offsets - you can focus on activities that help lessen your impact.
Measurement Examples: while larger companies have more resources to use common measurement practices, smaller businesses can consider their choices. Example might be reduction of fossil fuels based on new processes like virtual meeting Mondays so you have one less day of travel or reduction of waste through best practices
TBL Benefits
While there are certainly pros and cons to focusing on being a sustainable benefits. Here are a few of the benefits:
purpose-driven organizations are 202% more likely to report revenue growth
studies have shown that companies with a clear purpose and focused on “doing good”:
attract talent
retain talent
have higher rates of innovation
consumers are continuing to look for companies that are “tbl” focused to support with their spending
investors are looking for and willing to pay a premium for companies with sustainability practices
business practices that support the triple bottom line can lead to longer term efficiency and practices that are not only cost efficient, but help with productivity increases and expense reduction too
In today’s world we are challenged by the economy, divisiveness in our leadership, environmental issues…I probably don’t have to list it out. If every business took the time to think about how they are impacting their triple bottom line it would be interesting to see what the impact could be in our world.
And you don’t have to do it all at once or become a B-corp - just shift to thinking about how the business you have or are in is moving towards sustainability. Then start taking small steps - one at a time toward that sustained yield in impacting profit, people and planet.
PS - more good information in this article from Investopedia on Triple Bottom Line.
