Sustainable Value

Moving towards Rio + 10 in Johannesberg in 2002, there is a need for a more holisitic view of business sustainability and to start dialogue with both internal and external stakeholders in the product development process. It is only by getting this 'buy in' that more Sustainable Solutions will be developed to the problems of unsustainable consumption and production. For many transnationals and governments globalisation is becoming a high profile issue. Demonstrations since Seattle are not anarchistic aberrations but are symptomatic of wider concerns. Various stakeholders are starting to look 'beyond the product' and ask questions about working conditions of suppliers often in the developing world. With internet and global news networks this means that many companies and brands are in the spotlight, facing a new set of challenges in relation to the social responsibility of their operations. Social issues are now coming in the boardroom and various standards are starting to evolve to help manage this – namely SA8000 and AA1000. The sustainability agenda is now moving beyond eco-efficiency into a broader 'triple bottom line' discussion (economic, environmental, social). With many companies increasingly outsourcing the manufacture to South-East Asia this means that there is a changing relationship between product development and supply chain management. However, there significant gaps in knowledge and an inadequate toolbox. For example, many eco-design tools have been created for manufacturers, however many companies are now assemblers - which means that there are a different set of questions that need to be asked – particularly of suppliers. With growing concern over 'brand trust' in consumer and 'business-to-business' markets there is a need to raise awareness of sustainability issues amongst suppliers - to ensure risks are not imported. However, understanding is often very low, so there will need to be development of partnerships with a focus on 'two-way' communications. The aim should be to maximise the Sustainable Value embedded in the product, and minimise the negative impacts as every product or service has a sustainability impact. Strictly speaking one cannot have a sustainable business or product, in an unsustainable world but the company will have to define and understand its context, and explore strategies to maximise Sustainable Value. These are some of the hugely complex relationships and issues involved in the process of creating sustainable products or services and then delivering Sustainable Value. Understanding holistic sustainability impacts and increasing Sustainable Value will be a key challenge for a new breed of 'Sustainable Solutions Developers'.

 

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Last Updated: 1 October, 2001