Sustainability Loses Its Stigma

Manufacturers enacting sustainability programs no longer wear a scarlet letter.

The stigma has worn off sustainability. No longer does a corporate sustainability program brand a manufacturer a traitor to its peers. Manufacturers can fight the EPA with one hand and tweak their sustainability programs with the other.

A recent KPMG study, titled “Corporate Sustainability: A Progress Report,” found that 86% of U.S. companies reported having a sustainability program either in place, in development, or in their future. More than half have a plan in place today.

Market leaders such as Ingersoll Rand, PepsiCo, and Ford have helped show the way with innovative thinking about the products they design, the facilities they occupy, and the companies they work with. And trickle-down economics has driven sustainability from those top-tier companies into the lower ranks of business. Each year at our Manufacturing Leadership Summit, for instance, many small and midsize manufacturers tell us that sustainability is a must-have for them. In today’s intricately connected supply chains, supplier requirements enforced by the big fish help engender better practices among the smaller fish.

KPMG’s researchers found that the motivation for sustainability programs ranged across several factors:

• Enhancing brand reputation (37%)
• Regulatory or legal compliance (35%)
• Reducing costs (34%)
• Product or service differentiation (24%)
• Increasing profitability and managing sustainability risks (23%)

And it’s not all work and no play, according to KPMG: “The study suggests that many companies are finding strategic advantages in embracing and implementing a comprehensive, cohesive sustainability program.”

The most frequently cited benefit of a sustainability program was better or more efficient business processes and practices. Next came increased profitability or shareholder value, followed by the ability to attract or retain new or existing customers.

The KPMG study and the experiences of leading companies underscore the point that “sustainability” is no longer a dishonorable practice. Much like Lean manufacturing, sustainability codifies a philosophy of continuous improvement that is meant to enhance the businesses that employ it. And that can help sustain us all in the long run.