“Beyond Green”

By Margie Flynn, Principal and Co-Owner of BrownFlynn

Originally published in Paperboard Packaging on March 1, 2009.

Many leaders today believe “going green” will enable their company to gain competitive advantage and market share, especially during a challenging economy. That may be true, but how deep does the commitment to “green” permeate their organizations? While manufacturing and selling environmentally friendly paperboard and packaging products can increase sales, generate efficiencies and potentially enhance your company’s brand, two key questions remain:

• Is your commitment to green authentic and core to your company’s culture and operations?
• Have you explored the benefits of thinking beyond green to reap the wide-ranging benefits of sustainability?

More consumers are seeking to buy green paperboard packaging, versus plastics and other forms of packaging, but that doesn’t mean they’re overlooking a company’s true intention in selling such products. If a company, on face value, appears to be committed to “green” environmental practices based on its product marketing, yet the majority of its operations and manufacturing processes are brown (far from green), then the company is “greenwashing.”

Greenwashing triggers increased scrutiny and criticism by a multitude of key stakeholders, including customers, shareholders, advocacy groups, and many more. Therefore, before going too far down the green path, be sure to align your internal practices with your external actions and intentions.

But, why stop at just green? Think beyond green. Think sustainability. Companies integrating sustainability into their business operations recognize the convergence of environmental, social and economic values will truly set them apart from the competition. In doing so, your company can create value for customers by providing packaging solutions they want and need to enhance their lives while reaping the benefits of sustainability.

A good example is MeadWestvaco Corp., named to the Dow Jones Sustainability Index for the fifth consecutive year, which believes sustainability is both a business strategy and an ethical imperative. The company sees it as the driving force behind its innovative products and environmentally responsible manufacturing processes. Most importantly, however, it describes sustainability as “the foundation of a company built on integrity, accountability and stewardship.”

In this tough economy, however, does it pay to be sustainable?

How to Become a Sustainable Company

A study recently published by A.T. Kearney revealed that even during the current economic slowdown, companies that show a “true” commitment to sustainability appear to outperform their industry peers in the financial markets. 

By an average of about $650 million in market capitalization per company. 

So what exactly is a “true” commitment to sustainability?

According to the A.T. Kearney study, this included, A) a focus on long-term health rather than short-term gains; B) strong corporate governance; C) sound risk management practices; and, D) a history of investing in green innovations.  This list could easily be expanded upon, but I’ll let it rest for now in the interest of brevity.

The study concluded that, “The most sustainability-focused companies may well emerge from the current crisis stronger than ever—recognized by investors who appreciate the true long-term value of sustainability.”

Okay, okay—this all sounds really good.  But what does it actually mean and how can you get your company to be one of those corporate winners?

Sustainability is all about making our everyday practices socially, environmentally and economically responsible so that we can meet our needs today without compromising the ability of future generations to meet their needs.

Sustainability is easy to say and hard to do.  But the companies that actually roll up their sleeves and rethink their business models, operations, and products and services ultimately reap the benefits.

Here’s how: