How Environmental Sustainability Principles Can Strengthen Business Strategy
May 8by Jyasi Murray
The private sector has an amazing opportunity in the modern era to be champions of environmental sustainability, by integrating sustainable management principles into their operations, while also achieving their bottom line (making profits). Amongst many others, there are three unique ways in which businesses can achieve this.
Prioritising Sustainable Waste Management
Improper waste management is one of the leading causes of ocean, land, and air pollution. From releasing chemical by-products into streams and lakes, to solid waste such as single use plastics accumulating in cities around the world, improper waste management is aesthetically damaging to physical communities, and may seriously affect the health of those living in or near affected areas. This is especially common with air pollution, in major cities with a high density of gasoline cars being driven each day.
Though these problems are quite complex, and may not have a simple one-off solution, there are steps that are being taken to address them globally. For example, businesses whose services centre around transportation have been heavily supporting the electric vehicle movement, with companies such as Amazon and FedEx making significant investments into switching over their delivery truck fleets from gas powered to electric.
However, electric vehicles are not a perfect solution, as they have sustainability problems of their own, especially with regard to acquiring the minerals used in developing EV batteries. Furthermore, solid waste that ends up polluting land and sea environments should be managed through proper recycling initiatives, be innovated to be biodegradable, or perhaps, the company should support reusable packaging, such as supermarkets offering customers rewards for bringing their own reusable bags. Starbucks has already implemented such an initiative, offering customers small discounts and redeemable reward points when they bring their own reusable cups, which helps reduce Starbucks’ waste contribution to the environment.
Channelling Excess Capital into Green Investments as a Treasury Management Strategy
Most large corporations have dedicated treasury management and investment teams tasked with managing its financial resources and putting excess capital to work. Moreover, there is an abundance of sustainable development projects, such as solar and wind power stations, that require funding to be developed. These projects often raise capital through issuing green bonds, which offer companies with excess capital a platform to help fund sustainable projects, while also receiving a stable and modest return. Furthermore, a smaller percentage of a firm’s excess funds may be put towards higher risk but higher reward investments. This can take the form of venture capital investments, which may lead to the firm launching its own VC arm, which many large corporations have done, such as Google and Intel. By channelling capital into sustainable development projects and startups, firms can put excess capital to productive use in the push towards environmental sustainability, while also making profits that support their bottom line, creating a win-win situation for everyone.
Biomimetic Design Principles (Biomimicry)
In the quest to develop more environmentally sustainable corporate strategies, firms can utilise biomimetic design principles in their product development. Biomimicry can be described as the emulation or inspiration of nature in the design and implementation of virtually anything, but in this context, a product. Whether it be a building designed like an ant’s nest for natural airflow and cooling, which lowers ventilation costs, or a solar panel that is designed to track the sun like a plant’s leaf, so as to produce optimal energy output throughout the day, increasing the panel’s efficiency, biomimicry is possibly one of the most important and revolutionary design principles coming out of the 20th century into the current era.
A popular example of biomimicry in action is the Shinkansen bullet train. Hailing from Japan, due to its inefficient design, when entering tunnels, the air pressure built up at the front of the train would cause loud sonic booms as it exited the tunnel, disrupting residents living near the train’s operational routes. However, Eiji Nakatsu, the general manager of the technical development department of the train’s parent company, was an avid birdwatcher. Being inspired by the Kingfisher bird’s aerodynamic beak design, the Shinkansen bullet train was redesigned to emulate such. Released in 1997, the redesign was a complete success, as the train got to its destinations faster, while using less energy, and the noise issue was eliminated. This is a powerful example of how understanding and working in harmony with nature, and even integrating its natural wisdom into a product’s design, can lead to environmental benefits, reduced costs, and increased profits.
As environmental sustainability becomes even more of a focal point in the business world as time goes on, these initiatives won’t be unique to a few companies here and there, but will become standard practices amongst businesses throughout the world.
References
Earthday.org. (2024, July 9). How our trash impacts the environment. https://www.earthday.org/how-our-trash-impacts-the-environment/
Rewards for Sustainability!. Starbucks. (2024, November 6). https://www.starbucks.com.kw/en/article/591/rewards-for-sustainability
From Billions to Trillions: Setting a New Goal on Climate Finance. UNFCCC. (2024, April 29). https://unfccc.int/news/from-billions-to-trillions-setting-a-new-goal-on-climate-finance
What is biomimicry?. The Biomimicry Institute. (n.d.). https://biomimicry.org/inspiration/what-is-biomimicry/
The Shinkansen and the Kingfisher: A tale of biomimicry in high-speed rail design. Biomimicry New Zealand. (2024, May 3). https://biomimicry.org.nz/the-shinkansen-and-the-kingfisher-a-tale-of-biomimicry-in-high-speed-rail-design/
