Rick Crawford
I have been in the sustainability field for more than a decade. More specifically, I have been in the renewable energy field as a solar installer, the alternative energy field manufacturing biodiesel and a green building consultant working for software start-ups. These days I am grateful to be living my dream marrying fly fishing and sustainability as President of Emerger Strategies. We are a sustainable business consultancy whose mission is to solve the climate crisis by improving the social, environmental and economic bottom lines of our clients. I have done, and continue to do a lot of cold calling and when I mention sustainable business, I am often asked, “what’s that?” So, what does actually mean to be a sustainable business? First, it’s not just being financially sustainable, but a sustainable business also takes into account its social and environmental bottom lines so that it is able to survive threats such as climate change, as well as meeting the demands of the growing number of conscious consumers who are looking to support companies that align with their own values. Need proof? Consider the millions of youth who have been taking part in climate strikes. These are your future customers, and if you are not paying attention, you are already becoming fossilized. Back to my point, what I have described in terms of taking into account not only the economic bottom line of a business, but also its social and environmental bottom lines is also known as the “triple bottom line.”
Sustainable Business
The “triple bottom line” was coined by John Elkington in 1994 and basically means that a sustainable business not only looks to have a healthy economic bottom line, but also fit social and environmental bottom line. This is also commonly referred to as: People, Planet, Profit. Historically, businesses only measured their value through their economic bottom line, which includes things like: sales, profits, taxes paid, monetary flows, and jobs created. But how do you measure social and environmental bottom lines?
Social bottom lines can be measured by things like: labor practices, human rights, product responsibility and community impact. A good illustration of measuring a social bottom line related to labor practices, human rights and product responsibility is how outdoor apparel brands like REI are now offering products that are Fair Trade Certified. Social bottom lines can also be measured by community impact, such as the number of volunteer hours an organization donates, or the total financial contributions made to nonprofits, such as being a 1% for the Planet Member. Additionally, a social bottom line can be measure by quantifying gender and racial equity in a company, worker safety and even environmental stewardship as communities, or even countries, end up bearing the external costs of manufacturing costs from air and water pollution. Measuring your social bottom line is good for society and for business.
The environmental bottom line is basically a company’s environmental footprint and typically is measured as energy, waste and water usage and a key performance indicator is a company’s carbon footprint. For example, there are a number of companies who are members of the Fly Fishing Climate Alliance who have committed to going carbon neutral by 2030, such as Patagonia, RepYourWater and many more. Committing to neutrality will not only eliminate their greenhouse gas (GHG) emissions that contribute to climate change, but will also reduce their operational costs. There are also companies working towards improving water efficiency in manufacturing operations and zero waste to landfill, which are both better for the environment and the economic bottom line. Not to mention, that as human population continues to grow, so does our demand for water and so does our square footage to store our waste. What gets measured gets managed and going carbon neutral and zero waste are surely ways to take responsibility for the environmental impact, and perhaps, make the world a better place?
The Business Case for Sustainability
What’s the business case for sustainability and why go carbon neutral & zero waste? According to the IPCC, we must halve global greenhouse gas emissions by 2030 and be carbon neutral by 2050. However, there’s also a real business case for sustainability, which includes:
– Mitigating risks associated with climate change
– Increasing competitive advantage;
– Driving innovation;
– Growing customer loyalty;
– Attracting & retaining talent;
– Improving financial performance.
So, companies that take a triple bottom line approach, not only reduce operational costs through conserving energy & water, but many companies find buyers for their waste creating new revenue streams. If the company is authentic in its sustainability endeavors, then they stand to gain fiercely loyal customers who will buy more of their products every year because they believe in the brand. If that same brand is also working to improve its social and environmental performance of its operations and products, then they can achieve a virtuous cycle of creating jobs at a livable wage and workers who are treated fairly, while producing products that conserve water, are made from recycled materials and are powered with renewable energy, which helps them to be a climate change solution. The cherry on top? People want to work for companies who actually care, so businesses have an opportunity to attract and retain talent while driving innovation as the create products and services that solve social and environmental problems. Not to mention the obvious, but sustainable businesses also have a unique competitive advantage.
20th Century (Old) Business Model vs 21st Century (New) Business Model
The old 20th Century business model was to take, make and waste. The new 21st Century business model is to give more than you take by helping to solve social and environmental problems. For example, you see many companies now taking their products back at the end of their usable life, which is also known as the circular economy, and you see businesses going beyond carbon neutrality and planting more tree beyond their carbon footprint. The success businesses of the 21st century will adopt sustainable business practices and reap the benefits. Those that don’t? Well, they will be going the way of the dinosaur.
If your business would like to learn, please visit our Sustainability Services page. Additionally, we will be hosting a Sustainability 101 Workshop at Tailwater Lodge November 1-5 if you love fly fishing and would like to learn more about sustainable business, this is the perfect opportunity!
