Sustainability consists of three key pillars: economic, social and environmental. It is only by responsibly assessing an organization’s policy in each of these areas that a leader can help companies improve the world for future generations.

None one of these dimensions is more important or relevant than another. In an example of true systemic interaction, progress on one front creates a positive feedback loop that advances the sustainability of another. Conversely, if one area lags behind the others for too long, a negative feedback loop emerges. This notion is quite abstract, but it is crucial for fully grasping the meaning of sustainability. Two brief examples might help turning this idea a little bit more concrete.

Companies that become conscious and mindful of their processes and try to achieve sustainable production, strive to reduce their energy consumption, material use and waste generation. The bottom line will immediately reflect the positive feedbacks of these sustainable practices. In an opposite direction, it is extremely difficult, if not impossible, to keep a healthy natural environment in a socially and economically degraded community. Local actors and groups will use the natural environment in a predatory way and will plunder any resource that is created. It is necessary to work both the social and environmental aspect at once.

In the next few posts I will unravel each of the three pillars, analyzing the different issues, challenges, solutions and trade-offs that must be considered. I will also analyze examples of how synergy is created when tackling social, environmental and economic issues in a holistic and systematic way.

Today I’d like to outline a few of the most important issues in each of the pillars to give you an idea of the wide range of issues that are involved in the journey to become a sustainable company.

Considering a company’s value chain and the three pillars, I list some of the issues that should be taken into account when formulating a sustainability strategy

Supply chain

(social, environmental and economic)

-        Make sure suppliers comply with environmental and social standards

-        Practice fair trade

-        Partner with supplier for technical and managerial development

-        Support supplier community local development

Production inputs/output

(environmental and economic)

-        Energy

• Reduce energy usage
• Source renewable energy
• Aim for carbon neutrality

-        Manufacturing

• Use rapid renewable raw material
• Source recycled materials
• Create recyclable products
• Maximize efficiency of processes

-        Waste

• Reduce
• Reuse
• Recycle

-        Product design

• Design for the Environment
• Aim at dematerialization: same performance and quality using less material
• Design for a closed-loop system
• Create high quality and durable products

Finance

(economic)

• Continuously improve ROI
• Ensure healthy profits levels
• Reinvest significant share of profit in company development

Employee policies

(social)

• Provide a healthy and safe working environment
• Cultivate a happy and respectful working environment
• Provide channels for participation and expression
• Create social benefits
• Share profits with employees
• Demand transparency and accountability of managers
• Treat workers fairly
• Create redress mechanism for disputes and wrongdoings

Local community

(social)

• Care for the natural environment
• Invigorate the social fabric: support community activities
• Participate in local associations
• Donate time, money and products

Marketing/sales

(economic and environmental)

• Product stewardship through life-cycle
• Provide true, complete and clear product information
• Influence through examples and thought leadership
• Provide Service and partnership in sustainability

Industry

(social, economic and environmental)

• Influence competition through examples and thought leadership
• Change champion in trade association
• Lead by action
• Strive to be a thought leader in the industry

In the following postings, I will elaborate on each one of these areas. I ask you to keep plugged!! I sincerely hope that you will help me finesse Merida’s collective and my own understanding of these issues.

Please, start by suggesting issues and areas that I left out the outline presented here.