Success stories: When sustainability pays off for business

Queensland  companies are discovering that a values-led approach can drive demand.

outland denim, denim jeans, denim jackets, made in cambodia, Sam Jam, samjamphoto, © samjamphoto, commercial photographer phnom penh, commercial photography cambodia

Queensland companies are discovering that a values-led approach can drive demand.

Queensland's Outland Denim is a company that achieved sustainability by working backwards from the very start.

Whereas most organisations begin with a product or service, and may later try to massage sustainable credentials into their business model, Outland Denim was anchored by a desire to contribute to solving a social issue - poor working conditions in developing nations - and then a business was built around this goal.

"It was a very interesting approach," said Dr Rob Hales, director of the Griffith Centre for Sustainable Enterprise. "They thought about the issue of human rights and were looking at fair work and fair conditions for people in the garment production industry, and they said, 'Well, how do we make that industry better for women in developing countries, so that they have proper work conditions and are not in what is basically semi-slave labour?'"

Outland Denim chose jeans as their product, and now, according to CEO James Bartle, the company has "a unique business model that proves the fashion industry can be the solution to some of the world's most pressing global social and environmental issues".

"Many companies think 'Let's make jeans because everyone loves jeans', and then as an afterthought, 'How can we make that sustainable?'" said Dr Hales. "But for Outland Denim people in developing countries were the number one priority."

Hales believes the company's sustainable approach to business piqued the interest of Meghan Markle, who has been seen wearing Outland Denim jeans: "People including the royals could see authenticity in what they were trying to do."

The United Nations has endorsed 17 sustainable development goals (SDGs) for business, and they are based on the principle of "leaving no one behind". The goals include no poverty, good health and well-being, gender equality, affordable and clean energy, quality education, and sustainable cities and communities.

"The first step in any sustainability journey for a business is to start with efficiencies," said Dr Hales. "What savings can you make? Sustainability doesn't have to cost you money. It actually saves money."

A good place for businesses to start their journey is by evaluating their use of resources. The Queensland government has a scheme for small to medium enterprises to assist in saving money on energy, water and waste.

Values-led companies now outperform their counterparts on the stock market, and consumers are demanding change and ethics in business. Greenwashing - where a company exaggerates its sustainability credentials, or negates good deeds by maintaining other practices that are not sustainable - is viewed dimly by consumers, and businesses that evolve to current conditions are able to turn sustainable practice into business advantage.

 "The more advanced stage ... is when you think about formulating your business around sustainability, and it just becomes part of your business model," said Dr Hales. "That can set you up for a future where sustainability is more front and centre in society, and therefore you're positioning your business strategically to capitalise on new things so you can actually be on the front foot."

Ground zero for sustainability is the energy sector. Jordan Groeneveld is a senior manager and energy sector lead at Energetics, a specialist energy and carbon management consultancy. Energetics assists some of Australia largest national companies - in fields such as gas and oil, commercial building, supermarkets, local government and airports - understand their energy and emissions and drive savings through business improvement; be informed through policy and energy market analysis; and be sustainability leaders through strategy advice.

Groeneveld credits his MBA at Griffith Business School with assisting him in securing the job at Energetics, and achieve a promotion.

“It helped me to broaden my exposure to managing teams, undertaking business development and assessing corporate strategy of our clients,” he said. “The MBA also (helped with) self development and improving networks across different industry sectors ... [and] I have been able to apply ideas and analytical tools from my MBA in my profession and vice versa, which was not possible with my undergraduate degree."

He says that while company activity has been traditionally driven by compliance and cost savings, organisations are now reacting to investor and community expectations for disclosure and improved performance.

He uses the analogy of "driving down a long road" when describing the three stages of achieving sustainability (compliance and use of resources; seeking opportunities for new revenue sources; and an advanced, whole-of-organisation approach).

"Some businesses understand their impacts by their mistakes and by looking in the rear vision mirror," Groeneveld explained. "Most businesses, however, have a forward focus and change lanes to access opportunity. But the leaders look far ahead and understand the need to change direction before roads diverge."

Outland Denim

Based in Tamborine Mountain, with production, washing and finishing facilities in Cambodia.

Food Connect

Create a world where everyone has access to healthy, fresh, ecologically-grown food that is fair to growers, eaters and the planet.

Pumpkin Island

This holiday destination in the southern Great Barrier Reef is committed to operating as sustainably as possible; an example is that cottages are powered by 12-volt solar and wind power.

Suncorp

For recent divestment from fossil fuels

Sustainable Marketing

A leader in Ecobiz programs for eco-efficiency practices

Originally published as Success stories: When sustainability pays off for business