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Sustainability Leads to Cost Savings, Revenue Growth

From Environmental Leader, Published 27 November 2013

Sustainability programs are  producing cost savings, revenue growth , competitive advantage and environmental benefits across corporate America, writes Harold L. Sirkin, a senior partner of the Boston Consulting Group (BCG).

Sirkin cites a survey BCG conducted in cooperation with the MIT Sloan Management Review in which 37 percent of the 2,600 managers and executives identified sustainability efforts as a source of profit  — a 23 percent rise over 2012. About half of the responding companies (48 percent) said they changed their business models as a result.

The blog quotes David Brodwin, co-founder of the American Sustainable Business Council , who  earlier in 2013  said sustainability efforts take many forms: “Some companies succeed by targeting sophisticated consumers who prefer to pay more for a product that is organic, healthier, produced in [a] cleaner or safer way, or produced in a way that provides more benefit to the workers involved…Other companies succeed by driving their costs down as a result of rethinking their product  and process design…Still other companies succeed because the pursuit of sustainability leads to a higher quality product, with fewer defects and rejects.”

Firms that set tangible, public sustainability goals improve their financial and environmental performance , according to a white paper released in July 2013 by CH2M Hill.

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