Thought Leadership
19
Many industries are looking to Brazil, India, and China (three of the four BRICs) for future growth. But growth requires head count – ideally local head count with product and company experience. Recruitment and retention underpin any growth plan, but the high churn of local professionals when wages are being bid up weakens these foundations. Providing a moral purpose to an enterprise beyond achieving a budgeted target is part of the solution. Internal sustainability programs can make a company a better place to work. They aim for less impact on the environment and deeper relationships with local communities. Corporate philanthropy is giving way to more meaningful projects. Creating local service companies to supply large corporate needs goes much further than providing swings and slides for the school playground. Executives can use their skills to develop local companies that do more than offi ce cleaning and basic services. At one mining company, the focus was on building real businesses run by local people with assets, bank funding and scale. The mining company wanted to build local construction companies; not simply source labourers. They set up business training and mentoring. They set long-term goals with community leaders for their enterprises. Listening to the sustainability executive behind this approach is inspiring. People want to be part of a company like this and in turn they remain valuable and committed assets.
So what is driving this movement of people with fi nancial and business skills into sustainability? One simple view is that the problem-solving skills and creativity business people bring can help the technical experts achieve more. And they are good at translating sustainability benefi ts into fi nancial terms that can be understood at senior levels. The days when companies spent just enough on sustainability to earn “good corporate citizen points” are drawing to a close. Now spend levels are set as they are in every other department or unit, with payback periods, internal rates of return or simply cost savings.
The days when companies spent just enough on sustainability to earn “good corporate citizen points” are drawing to a close. Now spend levels are set with payback periods, internal rates of return or simply cost savings
WWW.CARBONWARROOM.COM
My own case, as a Harvard MBA with 25 years’ business
experience, exemplifi es the migration we are seeing. I joined ERM, a global environmental services company, to head up a new push into climate change services. Part of my focus has been looking at areas such as energy cost savings and revenue impacts – and helping clients allocate resources more eff ectively. For me, crossing the divide has been about working with large polluters and trying to improve their performance – an impact that is frequently far higher than a cleantech entrepreneurial venture could make. As the low-carbon economy matures, the requirement
for more executives who can cross the divide is steadily growing. The recent uptick in interest in ecosystems services valuation is one clear example. The Economist recently described it as “putting a price on nature”. The carbon markets represent a sincere attempt to put a price on an intangible – carbon dioxide emissions – in order to facilitate better business decisions. It is up to those who have crossed the divide from other areas of business to play their part in defi ning the new sustainability. ||||
ISSUE 04. SEPTEMBER 2011
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