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The Business Case for Sustainability: Combining Purpose and Profit

SpeakerS:

Julie Hyman, Anchor, Yahoo Finance
Poul Weihrauch, CEO, Mars, Inc.

With Core Programming Sponsor

“There is no tradeoff between purpose and profit; there is no tradeoff between sustainability and good business. We surveyed 14,000 consumers in the seven biggest economies in the world, and more than 90% of them said that companies should both grow and solve sustainability issues.” Poul Weihrauch
“You decided to apply the sustainability metrics not just to your direct business—you looked at your supply chain, you looked at agriculture, you looked at retailers who were selling your product as well.” Julie Hyman

Key takeaways:

  • Sustainability and profitability can coexist: Mars, Inc. demonstrated that it is possible to grow the business while reducing greenhouse gas emissions, achieving a 16% reduction in emissions while increasing sales by 60%. The CEO emphasized that there is no tradeoff between purpose and profit, and that good business aligns with sustainability efforts 
  • Long-term investment and shareholder alignment: Being privately owned allows Mars to communicate directly with shareholders to make significant long-term investments in sustainability initiatives. 
  • Consumer expectations drive corporate responsibility: A survey of 14,000 consumers in the seven largest economies revealed that over 90% believe companies should both grow and address sustainability issues. Meeting these expectations is essential for long-term success. 
  • Purpose attracts talent: Modern job seekers prioritize working for companies that contribute positively to society. Mars found that integrating sustainability makes them a more attractive employer, with associates staying three times longer than industry averages in the consumer packaged goods sector. 
  • Supply chain impact is essential: Since 96% of Mars’s emissions come from outside their direct operations, collaborating with suppliers and customers is critical to reducing their overall environmental footprint. 
  • Integrating sustainability in planning: Mars incorporated sustainability objectives into their business planning alongside traditional financial metrics, tracking investments and progress rigorously. 
  • Transparency builds trust: The company tracks sustainability investments just like other business expenses and emphasizes reporting actual progress rather than promises. 
  • Employee engagement enhances sustainability efforts: High levels of employee interest in sustainability initiatives help to drive these programs forward and boost overall engagement within the company. 

Action items:

  • Integrate sustainability to core strategy: Make sustainability a fundamental part of business planning, setting clear goals, and tracking progress with the same diligence as financial performance. 
  • Collaborate across the supply chain: Work closely with suppliers and customers to address environmental impacts throughout the entire value chain. 
  • Align with consumer expectations: Conduct research to understand consumer demands regarding sustainability and integrate these insights into business strategies to enhance brand loyalty. 
  • Invest in talent purpose-driven initiatives: Foster a company culture that emphasizes sustainability to attract and retain top talent, meeting the expectations of a new generation of employees. 
  • Demonstrate transparency: Report sustainability efforts and outcomes transparently to build trust with stakeholders, including shareholders, consumers, and employees. 
  • Educate to overcome misconceptions: Share success stories and data to address the misconception that profitability and sustainability are mutually exclusive, reinforcing that they can be pursued simultaneously for long-term gain. 
  • Prepare for societal and political engagement: Recognize that societal issues around sustainability are entering the workplace and be prepared to address them professionally, ensuring that company policies reflect broader societal values. 

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