Making Sustainability Profitable

Rapidly developing economies are often portrayed as sustainability laggards - focused more on raising their citizens out of poverty than on protecting the environment. It's true that their regulatory bodies can be weak, hesitant to impose restrictions on newly liberalized markets, or resentful...

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Bibliographic Details
Published in:Harvard business review 2013-03, Vol.91 (3), p.110
Main Authors: Haanaes, Knut, David, Michael, Jurgens, Jeremy, Rangan, Subramanian
Format: Magazinearticle
Language:English
Subjects:
Business growth
Developing countries
Emerging markets
International
LDCs
Market strategy
Success
Sustainability
Sustainable development
Online Access:Get full text
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Summary:Rapidly developing economies are often portrayed as sustainability laggards - focused more on raising their citizens out of poverty than on protecting the environment. It's true that their regulatory bodies can be weak, hesitant to impose restrictions on newly liberalized markets, or resentful of pressure from industrialized nations. But the developed world has never had a monopoly on visionaries. And in markets where the pressures of resource depletion are felt most keenly, corporate sustainability efforts have become a wellspring of innovation. In 2010 the Boston Consulting Group joined forces with the World Economic Forum to identify companies with the most effective sustainability practices in the developing world. The study involved reviews of more than 1,000 companies ranging in size from $25 million to $5 billion, from a wide array of markets and industry sectors. From the pool of companies studied, more than a dozen "champions" were identified whose sustainability practices were highly effective, innovative, and scalable. These organizations are located in countries across Latin America, Africa, the Middle East, Asia, and the South Pacific. Some pursue sustainability out of pragmatism, some out of idealism. But regardless of their motivation, they have consistently generated above-average growth rates and profit margins. Collectively, these companies vividly demonstrate that trade-offs between economic development and environmentalism aren't necessary. Rather, the pursuit of sustainability can be a powerful path to reinvention for all businesses facing limits on their resources and their customers' buying power.
ISSN:0017-8012