Given the demand of consumers, employees, investors, clients and government regulators, many companies are jumping on the “Let’s Say We are Sustainable” bandwagon…..then becoming frustrated they are not seeing the benefits they are hearing others are receiving.

This article lists five reasons your sustainability program is not generating impact:

• Your report is annual – The article talks about timeliness, but our experience is, if you only do an annual report, you have not integrated sustainability into your operation and, like all things, you are not going to gain benefit if you are not focused on it. If you are just checking a box, you will not benefit from your sustainability effort, or any effort, for that matter.  We recommend our client Green Teams meet monthly to discuss the projects and action items and we participate in our client Green Teams, to help them stay on task.  If you don’t talk about it, people will not know you did it.

• Your report is on a six-month reporting cycle – The article talks about the potential to be overwhelmed with data collection and analysis, causing a long life-cycles between reporting. We solve this via monthly meetings that are short, concise and action-oriented.  Less overall time is committed, updates are easier, the team is engaged, performance is easier to analyze, and operational improvement remains the key goal.

• You spend all your time collecting data and not using it – The article talks about organizations forgetting that the goal is not to produce a report but to improve the organization. Simply stated, this problem occurs when there is too big of a gap between the sustainability team and the leadership team.  Having a CEO letter is not going to solve this problem.  Active, engaged, company leadership is critical to ensuring your sustainability program benefits the company, rather than simply being a document on the shelf.  We require members of our client leadership teams to be involved in the Green Team, to ensure focus is on performance and operational enhancement.

• You are not certified under a standard – Many companies try to custom-build their own sustainability programs. This provides great job security for those who custom-built the program, but it seldom works well or stands the test of time.  Further, +70% of consumers disbelieve a company’s sustainability claims if not backed up by being part of a legitimate, respected global standard.  Next, that custom program is going to have trouble with meeting compliance without a 3rd party validation.  Net, if you choose to build from scratch, and you are not aligned with a global standard, expect to always be out of step, always be questioned and always be under-performing versus your peers who are certified under a global standard.  We follow the world’s top sustainability standard to ensure our clients benefit from being part of the top program and gain from the scalability and credibility of same.

• You are not providing enough context – The article talks about the need for truth. Companies that make claims like “carbon neutral by 2040” without detailed back up, are damaging their reputations.  Our program requires a 3^rd party audit to ensure accuracy.  This protects all parties.  We also help our clients develop and publish their regular and supportable sustainability posts / releases, to ensure the narrative ties to supportable actions.

Basically, this is all common sense.  Consumers, employees, investors, clients and government regulators want your company to be legitimately and supportably (ie, certified) sustainable.  The benefit in doing so is significant to your company; and you can do it cost-effectively, both in time and money, if you follow the proper program.

Edenark Group helps companies all over the world cost-effectively benefit from becoming environmentally certified sustainable.  Watch this master class, then contact us.

Per this article a KPMG survey shows that 75% of companies surveyed do not believe they are prepared for the upcoming sustainability reporting requirements that countries are putting in place.

Is your company part of that majority?

What’s the plan?  Are you going to cover your eyes and ignore the pending rules?

Would you like to turn this into a win?

Watch this master class and contact us.

Per this article, the California Attorney General filed a lawsuit against five of the world’s largest oil and gas companies, as well as the American Petroleum Institute, alleging they misled consumers about the impact of fossil fuels on climate change and the planet.

Taking the point further, this article talks about 16 Montana young people who successfully sued the State of Montana, claiming the state’s fossil fuel-based energy system contributes to climate change, in violation of their constitutional rights.

The Montana suit is the first successful North American climate litigation that upheld claims on environmental rights. 

Now, think about your company and how it is operating.  Are you confident you would prevail if employees or the community sued you for not acting to protect their environmental rights?

The Actionable Knowledge Foundational Institute (AKFI) interviewed David Goodman, CEO of Edenark Group, in this podcast, and discussed the following

• What are the sustainability certification trends?
• What to look for in a sustainability program for your company. This master class was offered.
• The value of a sustainability certification and 3^rd party audit, to avoid penalties and fees.
• The reasons a company would pursue sustainability certification – consumer demand, corporate demand, Net Zero Scope 3, and government compliance
• Opportunity v risk
• Benefits of following a global standard that includes a 3^rd party audit
• Scope 3 opportunity for small to mid-sized organizations
• Advice to students looking to pursue a career in sustainability

In everything we do, that first step is hard!

This article does a great job of explaining corporate sustainability and the fact that it is faaaaaaaar broader than simply being green.  The article talks about the definition of sustainability and talks about the different industry phrases, such as ESG (ie Environment, Social and Governance) and SDGs (ie, the 17 United Nations Sustainability Development Goals).

However, the article exposes one of the problems with corporate sustainability and, sustainability in general – the quantity of things you can focus on.  In point of fact, many organizations choose not to start due to feeling overwhelmed.

To that end, a key message in the above article is – “…companies don’t always need to start anew, but can build and improve what they already have in place.”  In other words, you are probably already doing much of what you need to do and if matched with the right sustainability program, your normal reporting structure will probably serve you well in gaining the benefits of being a certified sustainable company.  Don’t over-think it or try to do too much.  Start small.

Another point in the article is – If you decide you want to pursue sustainability, where do you start?

We tell all organizations to start with a review of what to look for in a sustainability program and we use this master class to give 8 things to look for.

Find one that will address those 8 things and allow you to start from where you are.

Then……take that first step!

You will be happy you did.

We are transitioning to where sustainability is a baseline requirement for purchase.

Per this Harvard Business Review article, there are three things for you to consider

• Trust drives behavior and ultimately business outcomes – Highly trusted companies outperform others by up to 400%

• Sustainability promotes trust, particularly among younger generations – sustainability stands out as a critical driver of intent, especially in young people, who care about a brand’s positive intent

• Younger generations will soon have most of the purchasing power – We are seeing this play out today, but it will progressively increase as Millennials and Gen Z will surpass Boomers in purchasing power by 2030

We are already seeing the impact, as certified sustainable businesses are dramatically outperforming their non-certified peers. 

As consumers become more demanding, as corporate mandates become more demanding and as government compliance becomes more demanding, expect sustainability to be even more important; becoming a baseline requirement for your business. 

Per the attached article, “Companies should prepare now.”  Those that are already certified are taking market share as you read this article.  

If interested in learning more, watch this master class and contact us.

This article asks if your board is an ESG leader or follower?

As most privately owned companies do not have a board of directors, let’s broaden the statement to say…

-“Are those that you turn for advice knowledgeable on sustainability/ESG, and capable of providing you with sound guidance?”

We know:

• Consumers, B2C clients, workers, governments, lenders, your community, your family and investors, are all expecting you to demonstrate the steps you are taking to show you are environmentally sustainable and promote diversity and equality;
• If not already faced with this, your company will soon be required to report on its Scope 1, 2 and 3 emissions;
• Lenders are incorporating sustainability into their pricing and you will pay more if you are not certified sustainable;
• Prospective employees may take a job with you short term, but the majority of them will continue looking if you are not certified sustainable and have an acceptable ESG program;
• Clients will move their business from you to certified sustainable options when they find them;
• Insurance carriers can rate you as a higher risk if you are not certified sustainable;
• Potential buyers/investors in your company will value you higher if you are certified sustainable;
• Companies that are certified sustainable via a globally-respected program are growing 75% – 20x faster than their non-certified peers;
• Companies that are certified sustainable via a globally-respected program are enjoying +24% Net Income and +11% EBITDA versus their non-certified competitive peers.

Are your advisors able to help you understand and navigate these matters?

If not, consider adding an advisor that has this knowledge and can counsel you on same.

As a follow up to our post of a few days ago, per this article, California has passed Senate Bill 253 and it is not headed for Governor Newsom’s desk. 

As this article states, if Newsom approves, California will usher in a new era of corporate transparency at a time when sustainability and carbon emissions are top of mind for many people.

If Newsom approves, large organizations will be required to report their carbon emissions in 2026 and their vendors will be required to report in 2027.

For those of you who are vendors to California companies and think you have three years to not worry about this, think again – we are already seeing the letters to vendors, sent by companies who realize they are going to have to sort through their existing vendors and decide which ones to keep and which ones to replace.

If you are looking for a way to take market share, look no further than to become a certified sustainable company.

Watch this master class and contact us.

Per this article, a SAP survey of 6,669 business leaders across 29 industries and 40 countries report

• Businesses are seeing the link between planet, profit and competitiveness

• +60% of business leaders recognize that sustainability has a moderate/strong effect on their long-term competitiveness and profitability

• Customer demand that businesses show they are sustainable has increased 7x between 2021 and 2022

• Investing in environmental projects has increased 5x between 2021 and 2022

Remember, all consumer age groups, combined, disbelieve +70% of sustainability claims that are not supported by a valid/legitimate 3^rd party certification.  The Under 40 consumer, which is the largest buying group and the future of your company, disbelieves +90% of a company’s sustainability claims that are not supported by a valid/legitimate 3^rd party certification.  Net, if you want to help the environment, implement internal sustainability projects.  If you also want to be rewarded for same, impacting the ROI of those projects and the revenue side of your P&L, you need to be certified via a valid/legitimate program. 

Watch this master class and contact us. 

Consistent with dozens upon dozens of other studies, an EY Study reports that companies that act on climate change are enjoying higher revenue growth and earnings.  Some of the key findings:

• Value of opportunity for businesses due to their sustainability effort (US$2.1t) is 7x the cost (US$311b).
• Let’s say that again – Besides helping the planet, sustainability initiatives are delivering a 7x ROI. Regardless of the planetary value, what other program does your company have that is delivering a 7x ROI?

• Companies with sustainability programs are 240% more likely to report higher-than-expected financial value….driven by their climate initiatives
• 69% of these companies are even exceeding their own expectations on financial value derived from their climate initiatives
• 71% of these companies are exceeding their own expectations on societal value
• 67% of these companies are exceeding their own expectations on employee value
• 65% of these companies are exceeding their own expectations on customer value
• And, 69% of these companies are exceeding their own expectations on planetary value

• 68% of sustainable companies are demanding their vendors be sustainable. So, regardless of if you lead or follow, you will have a choice to make.

• 74% of institutional investors are likely to divest a company with poor ESG performance.

No matter what your company does, no matter how small it is, no matter how little you have done so far, starting now is better than starting tomorrow; both for the planet and for your bottom line.   Watch this master class and contact us.