Sustainability
is the new normal Sustainability Value Matrix STAKEHOLDER VALUE
UNSUSTAINABLE
SUSTAINABLE VALUE
Opportunities Enhanced reputation Product differentiation Motivated employees License to operate New business models New markets
STAKEHOLDER VALUE
UNSUSTAINABLE Opportunities OLDER VALUE UNSUSTAINABLE (Lose/Lose) Enhanced reputation Product differentiation Motivated employees License to operate New business models SUSTAINABLE New markets
Risks Loss of sales Product substitution Preemptive regulation Reputation damage Fines, penalties
“The market strategy should not focus earth. They use smart irrigation, flow sensors, VALUE on being the ‘best’ company, but on what is soil amendments, native plants, integrated unique about the company—what differenti- pest management, drip irrigation and erosion ates it in the market,” says Guido. “Sustaincontrol. They recycle and repurpose materials, STAKEHOLDER VALUE ability is a great way to differentiate. Make it and plan driving routes with the least waste of known in your marketing strategy.” resources. Guido finds that many green industry pro“Train your people about the breadth of fessionals in her workshops report only envi- sustainability in the company and teach them UNSUSTAINABLE ronmental examples of sustainable practices to use the words to promote your company’s used in their companies. “They often focus sustainability commitment to customers and on only one of the three key components— the community,” says Guido. She reminds us environment—leaving out social (people) and that 98.6 percent of Americans want green the economics from their strategy,” she says. solutions. She encourages owners and managers to look more closely and notice where else they are al- Sustainability attracts customers “Once you’ve made a case for sustainabilready doing sustainable things. “They’ve been sustainable for years but under the radar,” she ity, promote it,” recommends Guido. “Cussays. tomers want to know. They are looking for it.” She notes that most green industry comWho are these customers? Guido says 97.8 panies are already actively engaged in the so- percent of household purchase decisions are cial component of sustainability but may not made by women. Currently, baby boomer market it. Businesses regularly give back to the women are the nation’s wealthiest demographcommunity in various ways such as installing ic group. As a demographic group, boomers gardens in parks and schools. They also invest still lead in buying power. Millennials, who will in their employees by providing training, certi- soon to be the largest consumer demographic, fication and advancement opportunities. choose, or will switch to, a company that is And of course, they care are about the more socially and environmentally responsi-
“Sustainability is a strategy, Risks not a product or service. Loss of sales As Product a strategy, it needs substitution regulation to Preemptive be incorporated into Reputation damage theFines, company’s penalties core business—its DNA—with no trade-off in quality, price and profits.”
ble. Is your marketing strategy directed appropriately to targeted core customers who value sustainability? “Doing good for the planet is good business,” says Guido. “Customer referrals increase, which will increase your company’s name and brand awareness and valuation, and decrease marketing and sales costs.” She adds that costs for sustainable solutions are 5-10 percent lower and can add 2-4 percent to net profit.
Sustainability attracts employees, reduces recruitment costs
“People want to work for sustainable companies,” says Guido. “They want to work for a company that resonates with their own values.” Employees who enjoy working for a company refer others. Guido says recruiting costs decline and reputations are enhanced due to word mouth efforts. As a result, operating costs can decline by 6-11 percent.
New opportunities
As urban populations and mixed development increase, and more people are “living on top of one another” in these high-density communities using more water and energy, there are potentially more opportunities for green industry companies to develop solutions for customers living in smaller spaces with limited availability for green space. |CG March/April 2019 Colorado Green
41
