Recently I read an MIT Sloan study on sustainability and came across this quote representing a more cynical view on corporate sustainability: “My only objective is [a high] return on equity, and I hope that the CEOs who manage the companies in which I invest my savings reason just as I do.” Though extreme, those of us in the business community know that there is some inherent truth in this statement. I do believe that many companies have embraced the awareness of sustainability, but feel that the awareness has not manifested itself to a comprehensive tangible plan of attack. It’s easily understood why; in this economic environment it’s hard to sell to the CFOs who are looking at the business case when it comes to return on investment. Many companies expect that sustainability endeavor will add to their costs, deliver no immediate financial benefits, and quite possibly erode their competitiveness.

When it comes to sustainable investments in new or existing facilities, the main issue that executives face is the ability to tie the value of these policies and investments back to real financial impacts. It’s been my experience that leadership feels that the effects of such programs are either too indirect to value or too embedded in the business to even value at a macro financial level. With that being said, I pose the question: Does it all stop there? Do we only invest in the initiatives that provide us a quick and best return? What do our facilities say about our strategic value and commitment to the environment? The premise that I place out there is: Have companies missed the greater strategic value created by sustainable facility investments by allowing “return on investment” to be the driving criteria for facility investment?

Companies that are creating real values through increased revenue, decreased cost and reduced risks are adopting strategic frameworks that looks at a comprehensive set of values generated through sustainable investments. The key is to understand how each of these investments is impacting the strategic values of the organization. By understanding this relationship, organizations can identify and develop metrics for measuring the performance of the investment. Not sure if you’re evaluating the value of your sustainability investments in a comprehensive way? How do your responses to the following resonate?

• How are you evaluating the value that is derived from customer awareness?
• Beside the standard return on investment, what financial metrics do you have in place that comprehend a larger impact to the financial picture?
• Bottom line values can be derived from internal sustainable process improvements, but what value do you plan on capturing from the greater supply chain?
• How do your employees values sustainability and how is that value being measured throughout the organization?

Is a greater value being missed? We are interested in your thoughts and approaches to sustainability strategy, initiatives and investments.