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Modern-day business success goes beyond just financial performance. As Gartner forecasts that 50% of CIOs will incorporate IT sustainability KPIs by 2025, it's evident that sustainability has moved from just a buzzword to a decisive factor in boardroom discussions. Yet, a stark reality check courtesy of Accenture puts things into perspective. Their findings reveal that 93% of the world’s largest companies, committed to net zero, will fail unless they double their pace of carbon reduction by 2030. Clearly, focusing only on “sustainable IT” is no longer sufficient! 

Today, enterprises shoulder a dual responsibility in resource conservation and championing sustainability and diversity as core values and aspirations. Failure to act responsibly will not just put a dent in sustainability goals but can also hamper a company's long-term profitability and reputation.

Creating sustainable solutions to drive ESG outcomes

Even though businesses have taken great strides in tracking and reporting, they still struggle to operationalize and execute their sustainability strategy. A corporation's business plan and KPIs must include sustainability goals at a micro level. Carbon emissions, for example, can also be tracked like your other business verticals. Sustainability affects every part of an organization. So, businesses must analyze every aspect of their operations to achieve sustainability. The question remains: How can businesses effectively transition these objectives into tangible operational realities?

The Multifaceted Approach to Sustainability

Achieving sustainability goals requires resource-efficient operations. Your entire business process— streamlining a supply chain, lowering manufacturing water use, or improving transportation routes to minimize fuel costs— needs to be optimized per your sustainability KPIs. 

Strengthening Supply Chains

Sustainable procurement should be a priority for every organization. Global operations usually involve complex supplier chains. Adopting ethical sourcing and circular economy sustainability practices can boost a company's reputation, cut expenses, and make the supply chain more resilient to natural disasters, geopolitical tensions, and global pandemics. Companies such as Unilever and Procter & Gamble have made considerable commitments to sustainable sourcing, which has a trickle-down impact on suppliers worldwide and has encouraged other suppliers to follow suit.

Diverse Teams Equals to Diverse Solutions 

An inclusive workforce with a diverse mix of backgrounds, experiences, and viewpoints can generate more innovative solutions. When people from different cultures and life experiences collaborate, they challenge each other and bring fresh perspectives to the table. They offer unique ideas that might not be generated by a more homogeneous group. For instance, diverse technical teams may create more usable and accessible technology, while diverse marketing teams can spot opportunities in new client segments.

Cultivating Innovation through Sustainable Synergy 

When companies adapt to sustainability, they're often forced to rethink existing business models and cultivate fresh perspectives. This kind of retracing steps becomes a breeding ground for innovative ideas. For example, the drive for sustainability led Adidas to create sneakers made from ocean plastic or Tesla, revolutionizing industries with sustainable technologies. Innovation thrives because of sustainability, not despite it.

Bottom Line

When discussing sustainable business practices, the spotlight often falls on environmental and social benefits. Yet, an essential facet remains in the shadows; sustainability isn't just about doing what’s right— it's about doing smart business. Beneath the surface, alluring prospects like cost savings and streamlined operations take center stage. Companies in the early stages of their sustainability journey have yet to realize that by focusing on sustainability, they can improve not only their green initiatives but also their bottom and top lines. It's about redefining success simultaneously and strategically.

 


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