
Last week, Wall Street Journal journalist Christina Binkley wrote that a group of about 100 apparel makers and retailers developed a software tool that rates the environmental impact of their apparel and footwear, from production to garbage dump. The Eco Index is scheduled to be unveiled at the Outdoor Retailer trade show next month, but the group is unsure when it will be unveiled to the public.
There are several stages companies should go through before publicly announcing their “greenness,” according to Christoph Lueneburger and Daniel Goleman in “The Change Leadership Sustainability Demands.” To do so (before going through the necessary stages) can set the organization up for negative publicity and the accusation of “greenwashing.”
As Luenenburger and Goleman state, “First, sustainability is about operational reality first, and public perceptions second. Companies that market their external image beyond their actual accomplishments are risking serious damage to their corporate reputations, the impact of which can extend far beyond any individual brands.”
The first stage of an organization’s sustainability initiative, when it just begins, is not the time to make public announcements, as there is no track record to substantiate claims of success. The sustainability initiatives are just being planted and haven’t been ingrained operationally, yet.
The second phase is when sustainability systems have been adopted and there are measureable, short-term commercial successes. The organization is proactive on sustainability and tracks its economic, environmental and social metrics over the business-planning cycle.
But it is not until the third phase that sustainability becomes “embedded in the corporate DNA.” At this point, sustainability is incorporated into long-term strategic planning and decisions can be made that may not be immediately profitable, but have a greater positive business and environmental impact further down the road.
This is when an organization can publicly share its sustainability practices for maximum effect. Providing information on production processes—from acquisition of materials through production, to the obsolescence and disposal of the product—will be a competitive advantage for those organizations that have a longer term track record of sustainability. Consumers are demanding more and more transparency, and those who provide it, along with a history of sustainable business practices, will have the edge over those who do not.
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