The term sustainability has seen an impressive evolution in the business world in recent years, transitioning from a pretentious buzzword that didn’t carry much meaning into a real necessity for modern organisations seeking to secure a competitive advantage and ensure long-term success.
Concerns regarding climate change acceleration, consumers’ increasing awareness of environmental and social issues and regulatory push from governments are among the main factors that prompted this shift and determined businesses to finally take sustainability seriously. Studies reveal that the demand for sustainable products and services is on the rise, especially among the younger generation, with over 44% of consumers stating they are more likely to purchase from sustainable or eco-friendly brands, even if they have to shell out more money for their products/services.
Therefore, it makes perfect sense that most companies nowadays prioritise environmental, social, and governance (ESG) principles, adopting a variety of practices and strategies that could help them lessen their negative impact on the planet and meet the demands of the hard-to-please environmentally conscious consumers.
That sustainability has become a prerequisite for business success is undisputable. However, putting sustainability into practice is not a simple endeavour and there are very few companies that manage to get it right. Reality proves that most enterprises fall short when it comes to implementing sustainability initiatives, with a failure rate of 98%, as shown by a survey conducted by Bain & Company.
So, despite companies’ good intentions, there’s still a huge gap between their sustainability aspirations and what they actually achieve. The only positive is that failures can also serve as valuable lessons, helping businesses understand the obstacles that get in the way of sustainability efforts so they can come up with better solutions in the future.
Lack of skills
Businesses require the help of trained specialists in different domains, such as renewable energy or green waste management, to reach their sustainability objectives. For example, if a company seeks to decrease their environmental footprint by reducing the amount of waste they generate and increasing recycling rates, partnering up with waste management specialist like Miltek is the most effective solution in this respect.
Unfortunately, given that sustainability is still a rather new field of study that’s rapidly evolving, the demand for capable professionals who possess relevant knowledge and skills in key areas and sectors is much greater than the supply at the moment. There are simply not enough qualified individuals who can cover organizations’ sustainability requirements. This gap, which is only getting bigger as new roles and responsibilities continue to emerge, is keeping companies from advancing their sustainability plans.
Silo mentality
Since most businesses don’t have the necessary in-house talent to support their sustainability efforts, they are required to work with specialists or teams from outside to get the job done. Although these experts bring valuable experience and know-how to the table, there is a high risk of creating a silo mentality where skills and expertise on sustainability matters are confined to certain departments and don’t permeate through the entire organisation.
Going green requires a team effort, where everyone understands the roles they play in the process. Therefore, to achieve real transformation and become truly sustainable, a company needs to bring all of its departments and employees on board and get them to actively participate in sustainability initiatives.
Insufficient investment
There’s no way around it – embracing sustainability in business requires considerable investment. From implementing new technologies, training employees, hiring new ones, and rethinking operations and processes, all these tasks and practices imply heavy expenses that not all companies are able to cover.
Many enterprises have limited resources at their disposal and struggle to allocate funds toward sustainable transformation. Without adequate investment, they are forced to cut corners which leads to subpar results.
On the other hand, some of the companies that do have a healthy capital and can afford to put more money towards sustainability initiatives are reluctant to because they are not convinced they’ll get a good return on their investment. This hesitancy and inability to plan a sustainability budget also becomes a hindrance in taking the green route.
Poor implementation of technology
Another area where most businesses stumble in their quest for sustainable development is technology implementation. In today’s digital age, advanced technologies like artificial intelligence (AI), virtual and augmented reality, internet of things (IoT), harnessing renewable energy, cloud computing and so on, play a key role in helping businesses operate in a more responsible manner and create work frames that are friendlier to the environment.
Nevertheless, learning how to leverage these technologies represents a major challenge for companies. Not only does this require in-depth knowledge of specific tech solutions, but it also implies integrating new systems into existing structures and ensuring scalability across all business levels.
Resistance to change
Change doesn’t happen easily within an organisation, regardless of the benefits it promises to provide. Employees and even managers are often resistant to change and feel unprepared to adopt new strategies and processes.
It takes a cultural shift for companies to fully embrace sustainability, and that can only be done through strong leadership, which many businesses lack. The transformation begins at the top of the hierarchy, with a visible commitment to sustainability from CEOs and managers, and it trickles down towards the bottom until it reaches all corners of the organisation. If leaders are not convinced that sustainability is essential and don’t back up these initiatives, neither will the rest of their team members.
There’s no denying that the path towards sustainability is long and bumpy and there are many obstacles that can stop businesses from achieving their goals. However, every failure should be regarded as a step forward as it teaches companies what works and what doesn’t. These findings can help decision-makers choose more effective solutions and overcome sustainability barriers.
