The Business Case for Environmental Excellence
For manufacturing companies, environmental strategies and initiatives are not new. From its beginnings in the 18th century and as main driver of economic development in the 19th and 20th centuries, the manufacturing sector has had a considerable impact on the environment, the movement of populations and globalization.
In the last decade, the threat of climate change and the finite character of natural resources, has accelerated “green’s” move into the boardroom. Scientists, activists, consumer perception and the spectacle of the financial markets have pushed the environmental agenda into the realm of corporate strategy.
Although initially, the primary aim of most companies has been to safeguard their reputation, progressively, more companies are realizing the necessity and business benefits of achieving environmental sustainability.
In the spring of 2008, Atos Origin and IDC embarked a study to examine the hypothesis that the business case for environmental excellence is real. Our research and analysis, which included a survey of senior managers and executives of 165 European companies such as Rhodia, Ford, Saint-Gobain Glass U.K., Carrefour, Philips Lighting, Inditex, Volvo, Conforama, Fairchild Semiconductor and in-depth interviews with 12 European companies and industry associations.
We discovered that companies with more mature environmental sustainability programs have a profitability advantage over the industry in general. These companies have set up initiatives to apply business intelligence to operational data that reveals areas where raw materials can be saved and energy conserved, which delivers immediate business impact through lower costs while, at the same time, reducing the company’s environmental impact.
And while the primary driver in European companies is still compliance, 46% are running or plan to run environmental projects aimed at cost reduction. There are also some pioneers. These companies are developing new environmentally oriented products and product features, services and business models which deliver new revenues and higher profitability.
Even in the face of the current economic climate, the companies interviewed in this study confirm that they are staying the course. This is because they believe that their environmental initiatives not only contribute to environmental sustainability but also deliver additional profits and competitive advantage.
Atos Origin is committed to moving toward environmental excellence, both in our own company and in how we serve our customers. We are also focused on helping our clients maximize the opportunities environmental excellence provides them. As this report confirms, we believe that it is good business. Organizations, which embed environmental sustainability at the core of their strategy and operations, future-proof their organization in these uncertain times.