How Consulting Firms turn into Sustainable Consulting Firms
Business consulting firms are becoming sustainable companies in response to calls for environmental business ethics and sustainability.
But, what do these terms mean, and what should the companies be doing about them?
Environmental business ethics and sustainability – some definitions
The terminology used around environmental business ethics can be confusing and overlapping.
Let’s clarify some of them.
Sustainability in business
Simply, Sustainability in the business refers to all the effects companies have on the environment and society.
Moreover, companies are being pressured to come up with strategies to address these effects. On a global front, the issues include
- Climate change
- Depletion of natural resources
- Human rights issues, such as racial, gender, and income inequality
- Fair working conditions
Triple bottom line
Many companies have adopted “triple bottom line” reporting. Basically, it measures and reports on profits and the company’s environmental and social impact.
Moreover, some people call it the three P’s: profit, planet, and people. It emphasizes the link between financial and non-financial performance.
Environmental, Social, and Governance (ESG) criteria
ESG criteria are standards for how companies should operate.
I. As a steward of nature, the criteria includes
- Energy use
- Waste and recycling
- Treatment of animals
II. In its relationship with employees, customers, suppliers, and the communities where it operates
III. In its business practices, include
- Shareholder rights
- Executive pay
- Accounting and internal controls
Corporate Social Responsibility (CSR)
Basically, CSR is another term that refers to a company’s impact on society and the environment.
Moreover, it involves strategies that will deliver benefits to stakeholders, such as
- Engaging with neighboring communities and promoting their development
- Health and safety measures
- Mitigating environmental damage
- Responsible sourcing
- Fair labor practices
- Ensuring fairness, equality, and inclusiveness
However, there is an overlapping meaning of these terms.
For simplicity, we will use
- “Sustainability” to cover all these meanings, and
- “Sustainable consulting companies” to represent all the consulting firms that offer services related to a company’s impact on the natural and social environment.
Why Should Companies Be Concerned About Sustainability?
Out of 45% of companies surveyed, the first reason given by McKinsey is to comply with regulations and meet industry expectations.
However, many considered long-term strategic investments because ESG issues have a bearing on their organizations or could create new revenue streams. Moreover, they will be tapping into the growing market for sustainable goods and identifying new products, groups of customers, or geographic locations.
Other reasons for attention to sustainability include
- Company reputation
- Meeting the expectations of employees. In particular, young employees.
- Increased efficiency and waste reduction
- Improved access to capital.
Moreover, Investors are looking at ESG or sustainability as a critical factor in investment decisions.
- For example, Goldman Sachs Asset Management has issued a statement on responsible and sustainable investing, which states, “We believe environmental, social, and governance (ESG) factors are important tools for identifying investment risk and capturing opportunity.”
However, there is some debate about the cost of sustainability.
Because, promises of revenue gains or cost savings are a long time thing. A McKinsey survey on how companies capture value showed that only 22% small to modest returns were reported, and about the same number of increased costs were reported. However, double that number of anticipated returns are expected in the next five years.
Moreover, the companies that had positive financial returns displayed a common set of management practices:
- Sustainability was a strategic priority, with specific targets
- Sustainability was a part of the corporate culture
- Employees were trained on how to incorporate sustainability into their work
As a result, companies may consider getting advice from sustainable consulting companies to ensure the most effective ways to meet ESG goals.
Examples of sustainable strategies for companies
For instance, Sustainable consulting companies undertake various projects to assist companies with policies and operations based on environmental business ethics.
Moreover, A list of projects undertaken by sustainability consultants at Consultport gives an idea of the impact of these interventions.
Internal Sustainability Policies For Companies
Basically, through internal sustainability policies, business consulting firms may help companies inculcate sustainability into their corporate culture.
For instance, here are some examples of what might be included.
1. Minimize carbon emissions
Many companies set a goal for zero carbon impact and start with small steps.
- Air travel is restricted. As a result, staff use trains or taxis, and many meetings are conducted remotely.
- Energy usage is reduced. For example, they use energy-efficient light bulbs on circuits that automatically turn off when the room is not in use.
2. Minimize waste and maximize recycling
On a larger scale, the “circular economy” aims to reduce wastage and ensure most of it is reusable and renewable. Moreover, companies can contribute in small ways:
Reduce paper wastage
- Reduce printing by providing reports in soft rather than hard copy
- Restrict the number of pages each employee can print – and remove individual paper waste bins
- Use double-sided printing
- Recycle waste paper
- Recycle printer cartridges
Reduce the use of plastic
- For instance, eliminate bottled water in the office and request the same from business partners
3. Educate customers on the company’s sustainability policy
Environmentally conscious clients will appreciate what you are doing. However, those who aren’t may learn to be.
4. Identify suppliers with sustainable credentials
Basically, holding others accountable is a way to increase your environmental impact.
For example, companies could
- Check the supply chain of printer cartridges for its offices
- Use catering companies that support regenerative farming practices
The role of sustainable consulting companies
Basically, environmental business ethics are required for company's reputation and reporting.
This is called by various names, including Triple Bottom Line, The Three P’s, Environmental, Social, and Governance (ESG), Corporate Social Investment (CSI), or Sustainability.
However, putting the proper measures in place can impact the natural and social environment in which your company operates.
Moreover, experts at sustainable consulting companies can put you on the right track and ensure that the steps you take will benefit your company and the environment.
Feeling a bit at sea? Talk to Consultport about your needs, and they will find the best sustainability consultants to steer the ship.