A few days ago, I had an interesting conversation with a colleague over a cup of coffee. We delved into some key sustainability insights that are often overlooked. It’s no secret that businesses frequently view sustainability as a liability, and heads of sustainability often struggle to gain the internal buy-in necessary to implement the initiatives they advocate for.

The Power of Data.

One of the key gaps we identified in our discussion was the approach sustainability practitioners take in presenting their strategies. Executives make decisions based on data. When a recommendation lacks figures, it’s difficult to illustrate the benefits it brings to the company.

Sustainability’s complexity makes it challenging to communicate its returns, which are often long-term and require significant initial investment. Additionally, many benefits are non-financial. One way to validate sustainability initiatives is by using a cost-benefit analysis. For instance, if a strategy focuses on resource efficiency and circular production, reductions in energy, water, and raw material use can be quantified. This data can project efficiency gains and financial implications, making the value clearer.

Quantifying Social Impact

While environmental and operational sustainability initiatives are easier to quantify, social initiatives pose a greater challenge. Methods like Social Returns on Investment (SROI) help assess these impacts, but many social benefits are non-financial and have long-lasting ripple effects.

My colleague shared an inspiring example from his business, which highlights the value of social sustainability. He owns a mobile phone shop in a small town, which also offers mobile money services. Bodaboda riders frequently parked their motorcycles in front of his shop, creating chaos and disrupting business. Instead of resorting to force, he chose to engage the riders and discuss the issue.

A Win-Win Solution.

To resolve the problem, he built a simple, neat shade next to his shop for the bodaboda riders to park their motorcycles. He also installed free Wi-Fi in the shop, which the riders could use while waiting for customers. This created a win-win situation: the riders gained access to online ride and logistics platforms, increasing their income, while the shop gained security.

The riders ensured no one stole products from the shop, often working late into the night and early in the morning. This eliminated the need for a security guard, reducing operational costs. The true value of this initiative became evident during a recent Gen-Z protest. While neighboring shops were looted and burned, the bodaboda riders surrounded his shop, protecting it from harm. Their loyalty stemmed from the goodwill and support they had received.

Embedding Sustainability into Strategy.

This story demonstrates how a social initiative can have a ripple effect, yielding non-financial returns that strengthen a business’s sustainability. Businesses should view sustainability not as a separate strategy but as an integral part of their overall business strategy. By embedding sustainability into their operations, companies can build resilient businesses, reduce operational costs, and create shared value within the communities they serve.

Incorporating sustainability into a company’s core strategy transforms the business into a vital part of the society it operates in. This approach, known as shared value, ensures businesses contribute to societal well-being while reaping long-term benefits.

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Article by Alice Ayuma, ESG Advisor, Scribe Services