Sustainability Financial Sustainability Imagine Work a Business

Sustainability

Financial Sustainability Imagine work a business consultant. Companies governmental entities hire firm make recommendations streamlining business operations, make companies fiscally sound. You asked supervisor present a local business conference subject financial sustainability

Financial sustainability: Mathematical models

Sustainability is one of the top 'buzzwords' today in terms of marketing products, but what does it actually mean? One definition of sustainability provided by the Environmental Protection Agency (EPA) is that "everything that we need for our survival and well-being depends, either directly or indirectly, on our natural environment. Sustainability creates and maintains the conditions under which humans and nature can exist in productive harmony, that permit fulfilling the social, economic and other requirements of present and future generations" (What is sustainability, 2012, EPA). Sustainability requires a long-term focus by the individual and corporate entities, but in the interests of making a quick profit, sustainability is often put on the shelf. Consumers gravitate to blue-chip companies to invest in that are not necessarily sustainable; corporations believe that more expensive green products will not sell and emphasize cheapness and disposability over quality.

However, consumers who buy energy-efficient fixtures for their home, such as storm windows and doors and solar panels can save money on gas and electric bills. Driving more fuel-efficient cars saves money on gas; decreasing meat consumption results in a healthier lifestyle and a lower carbon footprint. Investing in companies that have made a commitment to green technology and simply reusing and recycling can all improve the consumer's finances as well as help the environment. Investments in green companies encourage consumers to invest in the future, not in mature companies where the market has already been maximized in terms of its potential.

However, "cases for carbon reduction and improved sustainability must be equated with economic opportunity -- meaning energy savings, cost/revenue dollars, brand, risk management" (CFOs seek boldness and shareholder value in sustainability, 2012, Environmental Leader). Corporations must understand that they can successfully integrate sustainability into their models of profitability. For-profit companies are not altruistic and must be shown that environmentalism can generate revenue for shareholders. This may require management to be cognizant of the trade-off between the short-term and the long-term. In the short-term, corporations may believe that sustainability simply is not suited to the 'bottom line' and that investing in green technology costs too much. Also, most companies profit from encouraging consumption, which is counter to the principles of sustainability.

However, several recent examples of companies exist that have proved such assumptions about the incompatibility of environmentalism and profitability. wrong. First and foremost is the Toyota company, which has made the Prius one of its flagship models and encouraged virtually every other automotive company to copy is success by introducing hybrids. The Interface carpet company increased its profits after shifting to a zero-waste, energy-efficient model. Eight of Interface's nine factories operate with 100% renewable electricity, and 30% of its total energy is from renewable sources (Energy, 2012, Interface). Reducing waste in the name of environmentalism has made Interface a better company: by defining waste as "any cost that does not produce value to customers" Interface has reduced its production of scrap materials, defective products, misdirected shipments and incorrect invoices (Waste, 2012, Interface). Interface even reduces the waste of its final product in the environment by recycling the carpet after the consumer has finished using it. Overall, this has resulted in a 76% decrease in total waste to landfills. Interface has generated considerable goodwill amongst the public regarding its efforts, and this has enabled it to stand out in an industry where it is difficult to do so, given its lack of 'branding.'