CEOs agree: Sustainability determines winners

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Hauser

A recent Accenture study, surveying 733 CEOs from around the world, found that CEO’s are more committed to sustainability than ever. The report “A New Era of Sustainability” was published in partnership with the United Nations Global Compact and referenced in Sustainable Business Oregon on June 23.

In reading the report’s summary this statement caught my attention: "If sustainability does become fully integrated into global businesses within the next decade, the regulatory, technology, investment and consumer changes required will be staggering, creating significant winners and losers across businesses and industries."

In a recent workshop with Boeing suppliers, the realities of that statement were well understood. Nearly all the participants stated that the cost of doing business is going up quickly due to the "funnel" of increasing demands on decreasing natural resources and global labor issues. The finish line to the bottom in terms of cheap labor and lowest cost materials has been crossed. Now we must begin a new race with a finish line we haven’t yet defined.

"Staggering" change will not be achieved by looking in the rear view mirror. Rather, we need to look to the future and redefine success. Can we imagine a future that includes the sustainable management of all of our resources: natural, social and financial?

How do we look forward rather than back? We need to look at the earth’s operating system, and re-learn how natural systems operate, and how we operate within those systems. Are we taking assets from the systems faster than they can be replenished? Are we introducing substances into the systems that inhibit their operations? Are we treating other people in the system how we would wish to be treated? A sustainable future addresses all of these questions.

These issues are complex, requiring the participation of stakeholders and shareholders alike. The majority of the CEOs who participated in the study stressed the importance of integrating sustainability into operations and supply chains. They cited consumers as the primary drivers in the change to sustainability. Successful strategies for sustainability will engage these stakeholders and more.

Sustainable strategies will address climate change, labor issues, and resource management, protecting both the quality and quantity of natural resources. The final challenge is implementation, with numerous opportunities to create solutions, both for the short and long term.

Ten years ago most of our business leaders didn’t think the protection of our natural and social resources was their responsibility, now they realize it is a matter of necessity. Sustainable management and sustainable practices will separate the winners from the losers.

Regina Hauser is the executive director of The Natural Step Network-USA.