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Sustainability plays a crucial role in many industries today. It is something that every business owner should pay attention to and strive to accomplish within its operations. But do you often consider the sustainability of the companies and suppliers you are engaged with? Does it play a key factor on whether you do business with them?
Sustainability Vs Cost
It’s understood that business decisions often come down to cost. But, no one should have to choose between sustainability and profitability – the reality is they are two sides of the same coin. Sustainability is not just about pursuing a social good or protecting a brand but is also about innovating and thriving as a company. In the long run, it can also improve financial performance!
But what makes a company sustainable? Corporate Knights, a media, research, and financial information products company that indexes the world’s most sustainable corporations, uses several key indicators, including:
- % clean revenue
- % clean investment
- carbon production
- % taxes paid
- % board gender diversity
- % executive racial diversity
It also has a list of 21 “red flags” that reduces the overall sustainability score of a company. These include reliance on thermal coal, climate policy blocking, and contribution to extreme deforestation.
Embracing your values in a business world
For corporations to ensure their values are upheld, there must be a clear corporate culture that promotes sustainability over simply opting for the lowest price or wanting to be seen in doing the right thing. We need a culture whereby businesses don’t consider the price until values are aligned on both ends!
We are slowly seeing a shift. Nowadays, businesses are not just going to the cheapest bidder, they are also paying attention to equality, sustainability, and ethics. Good business value and personal values are beginning to align (although the gap from company value to procurement remains).
Sustainability at Schneider Electric
Schneider Electric offers solutions that promotes sustainability for its customers. It works with its stakeholders, including suppliers, to cut emissions by 50%. This year, our company was recognised by Corporate Knights, in its Global 100 list, as one of the most sustainable corporations in the world. It’s a testament to the company’s sustainability efforts in producing revenue from clean sources.