Sustainability key for tomorrow’s CEOs

Get ready to meet the Sustainable Generation. According to Sky, a new generation of business leaders are emerging from university that are determined to place sustainability at the heart of business.

Dubbed ‘the Sustainable Generation’ because they have grown up with issues like environmental protection and social responsibility as a constant feature in their lives, this new generation describes itself as knowledgeable about sustainability and confident in what they will do in the future to address it.

These young business leaders are also sending a clear message to HR directors about the importance of sustainability credentials to their own career plans. In Sky’s survey, 34% of respondents see creating social and environmental value as an overall career goal, just 1 percentage point behind earning personal financial rewards.

However, despite their drive towards embedding sustainability into business, they have mixed views about how the current crop of corporate leaders are faring. Just three per cent believe UK businesses are succeeding in their efforts to integrate sustainability.

Their views are hardly surprising in this respect. There seems to be an awful lot of announcements by organisations about their intentions, but far less comparable evidence of of concrete achievements. When the best example of a UK business walking the walk, talking the talk remains M&S with Plan B, that’s really not good enough, is it?

May be it’s just the general appetite for climate change and sustainability-led issues. Certainly, as the national newspaper and broadcast media coverage of Durban, has shown climate change is no longer front-page news. It’s not even page seven. Al Gore has made it his mission to make Americans treat climate change as a priority. What does that mean in real terms? To make it a top ten issue. Right now, it’s nowhere near. For example, more than half of Tea Partiers do not believe in man-made climate change. So much for sustainable generation on that side of the great pond!

UK future leaders, however, are a more certain and ready to lead bunch if Sky’s survey is to be believed. 70% agree that sustainability can create new opportunities for business. And the despite the woes of the economy, 68% believe that it should not be an excuse for businesses to ignore sustainability.

The Sky survey raises questions about the quality and quantity of sustainability training provided by business schools and businesses. Just over a third of the 750 graduate trainees, middle-managers and MBA students polled do not believe that their employers are providing adequate levels of training or education on sustainability. For many current MBA students dedicated tuition on sustainability does not feature significantly in their business courses.

Yet despite all of this they are optimistic because they feel that the business case for sustainability cannot be ignored, and with much of the groundwork (in the area) being tackled by today’s leaders, they are confident that they will be able to go much further themselves. In this latter respect, the sustainable generation has a ‘five-point plan’ to go further than their predecessors in integrating sustainability when at the helm of the UK’s businesses. This plan includes collaborating across industry to share best practice; taking more responsibility for supply chain sustainability credentials; integrating sustainability into values and decisions; using new technology to improve business performance on sustainability; and improving employee engagement.

More muscle with SuMo

In the eighteen months since my column began in HR Magazine, I have seen an increase in the number of organisations taking steps towards being more responsible. ‘Responsible business’ is a broach church. Depending on who you talk to, it can embrace ethical, social and environmental issues, sustainability, employee diversity or investing in communities.

Most organisations have a clear idea about what they want to achieve when they start their journey and putting an employee engagement programme in place is typically a cornerstone of a responsible business strategy. None of us would debate the logic of this: value-driven individuals are like gold. Get them correctly motivated and briefed and they will go above and beyond, not only deliver the changes that matter to your organisation, but also provide ideas to drive the programmes forward.

However, organisations are not always adequately set up to capture ideas in easy, cost-effective and practical ways, which means they are potentially losing out on invaluable insight. Indeed, according to a survey by Brighter Planet, a company dedicated to the mitigation of climate change through personal action, the more an employer has a system in place to share ideas and best practice, the more likely that initiative is to succeed, almost 3 to 1.

One approach is to use technology as an enabler or driver of ideas’ sharing and behaviour change. CloudApps has developed an interesting solution for HRDs in organisations which are targeting CO2 reductions. Called SuMo (it stands for Sustainability Momentum), it is a desktop dashboard that provides each employee with all the tools to record, track and share their personal contributions to the company’s carbon footprint, and the means to propose new ideas for sustainability initiatives.

HRDs can set SuMo to compare individuals’ CO2 information to colleagues in their workgroup, in other departments and regions, or any other classification they wish in order to create some healthy competition within the organisation. The SuMo ideas tab is a key feature. Once an idea is posted, employees can vote on it and it will be ranked on a leaderboard. This allows HRDs and others to understand staff motivations, chart ideas and potentially fast-track these into development.

Already SuMo has attracted the interest of some large companies. It is being actively trialled by a major US retailer, a global construction company, one of the leading global waste management operators and a top two UK retailer. Ashridge Business School has introduced SuMo into the classroom as a teaching tool.

“Employee engagement is all too often ‘management by poster slogan’,” says Peter Grant, CEO of CloudApps. “What SuMo does is link every worker’s daily efforts to the strategic sustainability of the business in a very measurable way,” “With SuMo, each employee has personalised and verifiable targets to achieve and its effect is to increase employee engagement naturally over time as work habits change. HRDs and employees alike can now share increased visibility directly from the frontline of the business by using SuMo’s real-time feedback.

He adds, “We now have the ability to collaboratively change actual working habits, not just ‘hearts and minds’ and deliver on the corporate sustainability which many have promised, but few to date have achieved.”

There is scope too for the SuMo dashboard to play a role in rewarding green bonuses to high performing staff, structure that is gaining ground as companies turn their back on the traditional approach of linking bonuses to profits. For example, TNT has rolled out a sustainability-linked scheme, so too has DSM in The Netherlands. While all 600 executives at AzkoNobel, another Dutch company, will only receive bonuses based on how much they have contributed towards reducing injuries among staff and cutting carbon, energy, water and waste. Indeed, deployed in setting green bonuses, SuMo gives HRDs some extra muscle that its acronym implies.

Make a ding in the universe

If you gave your employees one day to work on any project or idea that they had to make your business more responsible, the chances are that you’d get a whole load of ideas and stuff done that would go way beyond the things that you instruct them to do. Let’s all try it, we can make the world a little bit better, or as Steve Jobs would say ‘ make a ding in the universe.’

Greenpoint becomes Planet Positive

Planet Positive

We’ve measured our carbon footprint – and we’ve made a commitment to reducing our emissions by 5% on an annual basis with Planet Positive.

In becoming a Planet Positive certified business, we have had our footprint independently measured and reported by Planet Positive. It stands at 8.81 tCO2e. We have joined pioneering companies like Land Securities and Deloitte in precisely measuring our carbon footprint and taking steps to reduce it.

As part of the certification, businesses make an investment into approved sustainability projects through the Planet Positive Foundation, a UK-registered charity.

Greenpoint has chosen to support the Planet Positive Schools Programme engaging children and their families with sustainability and creating links between businesses and schools.

“We believe that good business goes hand-in-hand with positive social and environmental actions,” said Michael Saxton, Director of Greenpoint.  “Achieving and maintaining our Planet Positive certification demonstrates our commitment to reduce our carbon emissions and environmental impacts.   Our employees are a major part of this activity and, along with Planet Positive, they will help us create a better way of doing business.”

The certification is based on the internationally recognised Planet Positive Protocol, which brings together sustainability methodologies from around the world.  The Protocol is administered by an independent Technical Committee of academics and experts to ensure that it is always at the forefront of best practice.

Martin Goodman, Executive Chairman of Planet Positive, said: “Planet Positive is about taking action.  We are delighted that Greenpoint PR has shown leadership and become Planet Positive certified.  They can prove their commitment to the environment by cutting their carbon emissions, saving energy and saving money.  Being green is good for employees, good for sales and good for business. Greenpoint is now part of the solution.”

Planet Positive is an international certification and environmental management system for businesses, products, buildings and services.  Certification demonstrates a company’s commitment to environmental sustainability to employees, stakeholders and customers.

Planet Positive goes beyond compliance into proof of action, behaviour change and encouraging business to support local and global sustainability projects.  The Planet Positive Foundation, a UK registered charity, has been established to develop, promote and fund sustainability projects locally, nationally and internationally.

Cleantech branding: how to get it right

Reghard Goussard, CEO of Artic Circle, writes “whenever I develop brand strategies for corporate companies or business-to-business brands, one question arises more than others: ‘do we need a brand?’” In this issue’s guest column, he sets points cleantechs towards ways to get branding right.

“Rather than defend our position as brand consultants, I always advise clients to turn to Kotler, the distinguished Professor of International Marketing at the Kellogg Business School. Kotler nails it clearly: an effective corporate and/or B2B brand adds value and reduces risk. These are two messages that will resonate powerfully among cleantech companies, particularly those that are emerging out of early stage development and driving towards commercialisation. So with these in mind, let me take you on a short journey where I will seek to answer in my own way this question of “why brand?” based on our experience in this sector.

Accept clean and green is not a positioning

The concept of a green business is simply not a positioning factor. Responsibility and sustainability are well understood and increasingly front and centre to the strategies of major corporations.

Correspondingly, cleantech brands have to be built around bigger concepts than just being clean and green. You need to define why you exist and what you want to do. It may sound like a consumer question, but ask yourself ‘how do you want to change the world?’ But remember that other cleantech as well as mainstream brands also want to change the world. So the next question that begs to be asked is plain: how do you differentiate your cleantech brand?

Stand for something emotive and engaging – what is your essence

As a branding specialist I have seen some good ideas fail to translate into long-term viable businesses because they lack a core ‘brand essence’ to guide the company. Cleantech companies are perhaps at risk more than mature businesses because they are so focused on R&D that bring ‘brand’ later into the development cycle than they should. I firmly believe that cleantech brands need to step up to the branding plate much earlier to clearly define their core concept or core purpose. I recognise that this is not necessarily an easy thing for a science-based business to achieve. We come across examples of companies where the belief is that the technology itself is enough to engage investors, government or media. There needs to be more than this. In brand positioning workshops I often ask cleantech professionals to think about brands that they admire. Among those that are frequently cited is the telecoms giant, Orange. So what do you imagine is at the core of their brand?

It always provokes positive debate and keen interest because it is not success or power as one might imagine, or even connecting people, but ‘Optimism’.

Be unique through being you, build an identity

So my question to you is what is your “Optimism”? Answering this provides a valuable and rewarding platform to explore the primary challenge for every cleantech brand, namely defining your identity and bringing it to life as a brand. Not only is it essential to develop a clear and unique identity for differentiation, but also it will add value; it will root everything you do, from investor relations, to brand building communications, through to the look and feel of your website. It will create cohesion around your competencies and bring clarity to your approach. It will help define who you are and help you to engage with a wide audience base. You need to ask the question: do you want to be a Leader, the Charismatic Innovator or the Visionary Explorer? By adding this question to your Brand Blueprint, it will give you more focus and engagement.

Brands are naked again

The internet and social media have accelerated the way that information and opinion can be shared among audiences, all at the click of a mouse. Brands can no longer hide away in their specific category or industry. How your cleantech brand manifests in the digital space is particularly important. Accept that transparency and openness are the new mantras and build your brand from the bottom up with clarity and conviction. Remember, it’s not good enough to have a strong mission and vision statement, these are not concepts that consumers or stakeholders readily understand or engage with. You need to find compelling ways to engage with your audiences through storytelling, particularly if you are a cleantech that is emerging out of R&D into early-stage commercialisation. I believe that less mature brands can learn a lot from others, so take a hard look at effective corporate brand strategies inside and outside your category. GE is a one that many cleantech brands can relate to. Year on year, GE launches multinational campaigns that talk with authenticity to its audiences. It is successful because it finds lots of different and relevant ways for its many different audiences to engage with the organisation and its activities.

Concept driven, not product driven

I believe that many cleantechs could benefit by adopting concept and ideal driven approaches to branding. To sustain growth, a cleantech cannot just be about product. Strong conceptual ideas potentially offer a strong platform to engage with and connect to a wide target audience,
and reduce risk. Put bluntly, if you continuously use products as engagement factor your brand could run out of steam. Give all your stakeholders something emotive that they can engage with. If you don’t believe me, take a look at the brilliant new IBM “Watson campaign”. It is clear-sighted example of bringing the brand to life in an impactful and engaging manner. The campaign is rooted in the IBM Brand identity and core essence. Not for nothing does IBM carefully nurture its brand – according to Millward Brown’s annual Brandz survey, IBM is the second most valuable brand in the world. And it’s held this top position for many years.

Step up and lead

Branding represents an opportunity for cleantechs to add value by creating brand value. To achieve this, cleantechs should not wait until
their products / services reach maturity. Understanding the brand essence is essential – and it needs to be more than just a rational point of
differentiation; it needs to be an emotive point of engagement. Finally, cleantechs need to communicate strategically and be integrated at all possible touch points, with a particular focus on the digital space.

After the dip in cleantech venture funding in 2009 – and the modest return to growth in 2010 – all the evidence suggests that 2011 will be a stronger growth year. That’s welcome news – and here’s my prediction: the most promising stars of cleantech this year will be those that put brand at their core.”

Reghard Goussard is CEO of Artic Circle, brand consultancy partner to Greenpoint and our affiliate communications agency, Positive
Dialogue, in Africa.
You can find out more by emailing reghard@arcticcircle.co.za