Saturday, October 24, 2009

An Enterprise Must Have Sustainable Operations


By Daniel Stouffer

As we come under increasing pressure individually to take account of our impact on the environment, in terms of our overall "foot print" and our legacy for future generations, it follows that there is even more pressure on organizations to perform as they go about the business of producing products and services for our needs. Each organization, regardless of its size, must ensure that it understands the concept of sustainable operations and prepare for a very different trading environment.

The term "sustainable operations" refers to the ability of the organization to endure, from an environmental perspective. We know that we have caused considerable damage through unrestricted consumption and a disregard for the environment all around us. There is growing pressure on a daily basis to ensure that we are as self-sufficient as possible and that we do not place too many unreasonable requirements just to maintain life.

Senior management at any organization must fully adopt the principle of sustainable operations and must drive this understanding downwards and throughout the operation. It cannot be delegated within a particular division nor can it become the subject of a glorified public relations campaign. Morally, the enterprise is fully under the spotlight.

There is a lot of work to be done as the vast majority of organizations around the world do not understand their position when it comes to sustainable operations. We can certainly see that 80% of all the major companies do and are making pains to ensure that they conform, but there is still a long way to go.

As some organizations panic when they realize that they are not maintaining sustainable operations, they rush to try and analyze the position and promote the fact that they are doing so. Without a full understanding of the footprint in relation to their energy use, carbon emissions, water management and waste disposal then any statements they make in due course will be accused of "greenwashing," or mistaking their position.

It takes a full lifecycle analysis of an organization before a true position can be revealed. Every element of the business is responsible in one way or another for its impact on its surroundings and a full interpretation will be necessary before any realistic action may be taken.

Carbon emissions represent the biggest single problem ahead for any organization and top management must be able to analyze and understand their direct and indirect emissions. Scope one and two emissions, referring to production and usage of energy are primary, but scope three emissions may also be very significant when it comes to supply-chain actions, post production usage and disposal.

Sustainable operations management will help to bolster the bottom line of the company as it will by definition be paying particular attention to the efficiency of every asset. As such, as each asset must be made ultimately efficient, a benefit in terms of a greater return on investment can be expected.

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