Sustainability has evolved from a reactive and defensive endeavor to one that is generative and central to all aspects of business decisions. This was a clear message expressed throughout the recent CR Commit Forum.
Commonly used was the phrase, “Sustainability equals efficiency.” That is, organizations that have a strong sustainability perspective and culture also have improved efficiency, effectiveness, and profitability. Yvon Chouinard et al echoes this sentiment in “The Sustainable Economy” in the current issue of the Harvard Business Review, which presents four sustainability eras: sustainability 1.0. 2.0, 3.0, and ideas for sustainability 4.0, where “sustainability will simply be [come] how business is done.”
The ideas presented in “The Sustainable Economy” are important for EHS/S professionals to understand and embrace. For instance, the phenomena of creating a sector-specific Value Chain Index (VGI) is innovative, cutting-edge, and appears to provide a powerful way to catapult sustainability, not only in an organization, but also more broadly in a market sector. The authors outline a process that Chouinard’s company (Patagonia) and Walmart, with assistance from BluSkye (a strategy consultancy), used to develop a VGI for the Sustainable Apparel Coalition (SAC).
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Posted By Charles Redinger | in Auditing & Metrics, Corporate Social Responsibility, Emerging Issues, Innovation, Sustainability | Tags: Value Chain Index, VGI | No Comments »