2012 Workplace Trends Report: Workplaces That Promote Sustainability

BRIEF: Workplaces that Promote Sustainability

By Rachel Sylvan
Engagement Director, Office of Sustainability & CSR, Sodexo
-and-
Kristen Rainey,
Sustainability Director, Corporate Market, Sodexo

Having just crossed the population threshold of seven billion people and rapidly approaching nine billion by the middle of this century, many experts are questioning how we can feed, clothe, house, and otherwise meet the needs of so many more people, with the finite resources our planet has to offer.  Rapidly increasing population is already influencing the health and well-being of people and communities around the world, and it is certain to have an impact on the political, economic, social, and technological realities within which businesses operate.  Leading companies recognize that preparing to address the changing needs also creates the opportunity for them to thrive in the future, though innovations that address shifts in the environment support local communities and enhance health and wellness.  This is in essence what sustainability in the workplace is about.  Here are three ways that companies can add more meaning to their sustainability strategy.
 
Link Sustainability to Employee Engagement
It turns out that the benefits for companies that embrace sustainability go beyond energy efficiency, risk mitigation, opportunity for innovation and corporate social responsibility.  Sustainability directly affects your employees.  According to Ante Glavas, Assistant Professor of Management at the University of Notre Dame's Mendoza College of Business, “People who work for green companies have a pride-in-ownership mentality and are happier and more productive.”  (Koch & Glaves, 2010)  Higher productivity is certainly a no-brainer for any CEO, no matter what the industry.  Based on its own findings, Gallop calls employee engagement “a leading indicator of financial performance.”*  The same research demonstrated that engaged organizations have 3.9 times the earnings per share (EPS) growth rate compared to organizations with lower engagement in the same industry.”

Furthermore, pride-in-ownership is not simply about smiling employees showing up for work every day; more critical to the bottom line, pride-in-ownership could lead to greater employee retention, resulting in cost savings from lower turnover.

Show Your Commitment to Nourish Both Health & Planet
Food tops the agenda for many people concerned with our environment, health, and communities.  This is where concern about the rising obesity epidemic in the U.S. comes together with the global recognition that the food we grow consumes 70 percent of the planet's available fresh water, affects more than half its habitable land and influences the livelihood of about a billion people.  Food served onsite, at meetings, and in a company's products is a highly visible opportunity that every organization has to show they care about health and the environment.  Food also provides an opportunity to engage the workforce in whatever sustainability issues matter to you - climate change, waste, water supply, healthy living, etc.  Companies that do this best have a multi-dimensional approach.

One trend that is a great example of the bridge between health and environment is the return to smaller portion sizes.  Increasingly, many adults are coming full circle, opting to return to smaller portions resembling the kid-sized meals from their childhoods.  Why?  For starters, smaller portions obviously contain fewer calories, so many are pursuing this shift due to a concern for their waistlines.  Therefore, it is not surprising that the National Restaurant Association recently identified “mini meals” as a top trend for 2011.  The benefits go beyond health.  For example, smaller portions produce less food waste, reduce carbon impact, and generally cost less, which makes fiscal sense in this difficult economy.
 
Portion sizes are not only getting smaller; what people eat is changing as well.  With the USDA's new “MyPlate” recommendation for healthy eating, the government is shifting from a plate of the past (1/3 meat, 1/3 starch, and 1/3 vegetables) to a plate of the future (1/4 protein, 1/4 whole grain, 1/2 fruits and vegetables).  The more people know about the impact of animal production as a leading contributor to climate change, the more they realize that increasing consumption of plant-based foods and reducing animal proteins is not just good for individual health, it is beneficial for the health of the planet.

Go Beyond Your Boundaries to Address What Matters Most
Often our greatest impacts lie outside the boundaries of our own businesses.  Sustainability requires collaboration within our own organizations and throughout the supply chain.  Just look at the way companies are now accounting for climate impacts.  Traditionally, companies have measured emissions from their own energy production and purchase.  However, the world has recognized a growing need for a more complete picture.  This has never been more important, given the recently released numbers by the Global Carbon Project, which shows that 2010 brought the biggest jump on record for global carbon emissions - an increase of 5.9 percent according to coverage by the New York Times (Gillis, 2011).

The need for a wider perspective on the subject is why the Greenhouse Gas Protocol, in conjunction with the World Resources Institute (WRI) and The World Business Council for Sustainable Development, just introduced new standards providing increased clarity around Scope 3, which will allow companies to better measure the emissions of their supply chain.  Scope 3 accounts for “upstream emission” embedded in areas such as purchased raw materials and “downstream emissions” that account for employee commuting and business travel and the full lifecycle of the product after it has already left the company's hands.  Global companies like Alcoa and SC Johnson have already expressed endorsement for the new Scope 3 standards.  This type of reporting is likely to be mandated from advocates, clients and customers in the near future.  Moreover, once we know where our impacts lie, the next question will naturally be - so what are you doing about it?  Many companies see a strong business case for conducting Scope 3 inventories, and are realizing significant cost efficiencies after accounting for all emissions.
 
Sustainability contains opportunities to motivate employees, reach new customers, innovate business models, improve financial bottom lines, and feel good about the contribution to improving the world.  That seven and soon-to-be nine billion need all of us to take full measure of our impact and the future of our businesses depends on it.