A CLEAR Approach to Connect Sustainability to Business Strategy

Published July 19, 2011

Last week I was interviewed for a Fox Small Business Center article, the topic of which was sustainability management practices for small business owners. As we got into the heart of our conversation, it struck me that the approach small business owners should use for sustainability management isn't dissimilar to the approach larger businesses use.

Indeed, my research into the practices of Global Fortune 500 companies revealed a common set of activities companies use to tie sustainability to the creation of business value.

I have had the privilege of interviewing over 100 sustainability, strategy, and finance managers at these companies for my forthcoming book, The Future of Value. These interviews suggest the trick to excellence in sustainability management is a commitment to continuously renew your company's approach. After all, the assumptions companies use to plan their sustainability strategies constantly change.

This much-needed commitment to continual improvement was underscored on July 10 when Australia's Prime Minister announced carbon emissions would be taxed at about US$25 per tonne starting next year.

The approach starts with an effort to craft a sustainability strategy and "ends" with an effort to renew the company's sustainability strategy. In between are steps to nurture a robust sustainability governance structure, execute the strategy, and analyze the results of your efforts. These five steps are the core of the CLEAR Model:

Craft; Lead; Embed; Analyze; Renew.

a CLEAR approach

Craft Sustainability Strategy

Regardless of a company's size, a vision of what sustainability means to it is necessary to craft a plan to get there. My advice to companies small and large alike is to start with a clear definition of what "sustainability" means and then ask two follow-up questions:

1. Who are the stakeholders most impacted by my company and its operations (e.g., employees, local communities, etc.).
2. What does sustainability mean to these stakeholders?

Only with both sides of this puzzle can small business owners truly see the changes their operations require to become sustainable and effect positive change for their stakeholders.

Lead Strategy and Management Efforts

The best sustainability strategy left to its own devices won't be executed unless at least one person is given responsibility for carrying out this sustainability strategy as part of his or her day job. The most effective sustainability programs engage the entire enterprise at every level, including the Board. Sustainable Market Leaders understand the importance of leadership and governance. That is why they install robust governance structures to guide their sustainability efforts. The most effective structures consist of four components:

Central sustainability team
Cross-department committee(s)
Stakeholder advisory panel
Board level sustainability oversight

Embed Sustainability into Value Chain Activities

Execution is truly where the rubber meets the road for companies' sustainability efforts. Sustainability doesn't always require large, disruptive change. Nor does it require significant amounts of cash. Often execution requires taking tasks and activities companies already do to a new level of efficacy.

I am looking for these

Morrison Sustainability (not verified), August 3, 2011 - 22:18

I am looking for these subjects. Thank you for this wonderful information. Keep sharing us helpful details!

Today, sustainability has

Martin @ Sustainability (not verified), July 29, 2011 - 06:19

Today, sustainability has become a top priority for government, business and the general public. Thank you for this wonderful posts!

None of that is new

patriciasimmons, July 20, 2011 - 04:15

None of that is new technology, and these are standard options from both Boeing, Airbus, various aircraft interior refurbishers, corporate aircraft manufacturers, etc.
Genie Bra

We need to set a higher

Trevor Rose (not verified), July 19, 2011 - 05:58

We need to set a higher standard for sustainability. All I saw was bla bla BS-acronym bla bla bla... If this approach to sustainability works then why is the world continuing to fall apart? The fact is that much like full employment, zero inflation, & zero poverty, environmental sustainability is one of those things pretty much fundamentally ruled out by the mechanics of our limited supply currency based economics, and all we are doing here is ducking around plugging a handful of holes while the pressure behind the dam continues to mount.

If in your definition of sustainability it's ok for millions of people to remain in poverty, or to be 2nd class citizens in any way, then it's NOT sustainable.
For the system to be sustainable, it is not enough that some of it's parts (using a fairly low bar of attainment) can dub themselves with the title "sustainable". I really think we should be holding ourselves to a MUCH higher standard.

A new socio-economic paradigm is required, and that's one of the many things I've been working on.

Greener Fridges Can Cut Retailers' Energy Costs by One-Third Carbon Trust guide says low-cost measures could save companies 20 percent on their energy bills....	The Real Story About the Risks of Fracking The competing and often strident claims about hydraulic fracturing for natural gas can obscure the real story of the risks involved. As a recent report notes, the chemicals and drilling waste are more hazardous above ground than miles beneath it. ...
6 Tips for Making Sustainability Ratings More Meaningful The number of sustainability indexes has shot up in the past decade, growing from 21 in 2000 to 108 today. Strategy firm SustainAbility offers tips on navigating the nascent industry and advice on how to make it better. ...	First Takes: Meat's Climate Impacts, SUVs May Get an MPG Break, and More... Lifecycle analyses highlight the carbon impacts of different meats, greener cargo ship guidelines, and other news from early morning radar....
How Your Company Can Fight 'Brand Terrorism' A kid called David with a $600 laptop can now bring down a six-million-dollar ad campaign by big brand called Goliath. Here's how some companies are successfully navigating the new world of socially connected customers....	Economists Urge Honest Accounting of Carbon's True Costs The bill for all that unchecked carbon pollution is a lot bigger than previously thought -- and that the longer we wait to pay it, the more it’s going to cost us....
Energy Efficiency From the Baseball Stadium to Washington's Birthplace This week's episode of EnergyNOW looks at the Seattle Mariners' stadium waste efforts, how to charge up with a solar-power bikini and how renewables are keeping George Washington's birthplace heated and cooled. ...	6 Ways Companies Can Address Their Water Scarcity Risks Corporate concern about water shortages is on the rise, and there are a growing number of tools available to help companies avoid the physical, reputational and regulatory risks that running afoul of water scarcity can pose....

A CLEAR Approach to Connect Sustainability to Business Strategy