Does sustainability have a place after the recession?

Posted by Dave Challis at Thu, 29/10/2009 - 11:49am in CSR commentary

Sustainability is about now and the future.  The recession has forced companies to focus more on the "now" and in some cases review their entire business strategy.  But the long term security of companies is more important than ever in a world dealing with the credit crunch, social unrest and the effects and threat of climate change.  A UN study found that more than 60% of the world's ecosystems are degraded.  By 2050, more than 85% of people on earth will live in the developing world.

This means that companies need to adapt to our changing world and consider how their customers and consumers are shifting their behaviour.  For those organisations where sustainability is more about spin and showing off a few environmentally-friendly initiatives, it's likely that sustainability will fall down the priority list.  But there is an opportunity to use the changing business climate to take a step back and reassess how sustainability should be integrated into normal business.  The Institute of Grocery Distribution (IGD) recently published a report, "After the Storm", which includes their thoughts on shopper trends for 2010.

Of the ten main trends, seven include a sustainability element, including:

• Making it easy for consumers to do their bit by providing greener products
• A continued focus on values - like fair trade and animal welfare standards
• Supporting the community
• A focus on natural, healthy food
• The over fifties leading the way in experimenting with more ethical products
• Increasing interest in reducing waste
• A focus on innovation that doesn't sacrifice value or quality.

Sustainability is a about long term economic success with respect for people and the planet - so it's unsurprising that sustainability will continue to be important for companies in the coming years.  With regulation increasing - including what may come out of the Copenhagen climate change conference in December - the focus from government on the green agenda will only get stronger.  The IGD's report indicates that mainstream consumers are thinking more about their community and the planet and want to do their bit as long as their other needs (like quality, choice and value for money) are met.  A recent Eurobarometer survey showed that around than 8 in 10 EU citizens felt that a product's impact on the environment is an important element when deciding which products to buy.

The retailers and brands in the UK have already set strong sustainability commitments over the past few years and these continue to evolve - this week the Co-op Group set further goals, Tesco took steps towards renewable energy, Nestle made commitments to sustainable palm oil and Marks and Spencer launched a new climate change initiative.  The environmental issues are intensifying - but how much we see of company future sustainability initiatives will depend on the balance between ensuring the sustainability of supply chains and responding to government and consumer pressure - the evidence shows that ignoring sustainability is no longer an option.

Tagged with: Sustainability, Climate change