How to Build a Sustainability Strategy That Actually Drives Profit | GreenSpace Research & Consulting

Imagine this scenario of two companies based here at home in Nairobi. One of them is on a spending spree of billboards and marketing campaigns along Mombasa road, showcasing its religious commitment to “going green and its benefits”. However, it has its factory along the Athi River and discharges its effluents into it without treating them. On the other hand, there is a small agribusiness in Kitengela that has invested in solar-powered irrigation and does training to small-scale farmers about the importance of soil regeneration. It does not speak loudly, but what's for sure is that its costs continue to go down as it attracts and multiplies contracts.

This is the case of businesses today, where a major gap exists between greenwashing and profitable sustainability. It has reached a point where many businesses do not believe that sustainability can equate to profitability. There has been a significant increase in awareness about environmental issues and the need for businesses to take action. The government has also been pushing businesses to develop climate action plans. However, the resultant effects have been the use of sustainability as a tool for PR and a back burner instead of a tool for driving profit and reducing costs for business. This is an old model and it is obsolete already.

Are you still viewing sustainability as a cost contributor, a PR exercise to appease regulators, or a tool to get funding from donors? We believe it or not, but this is a fundamental strategic error, and your paradigm needs to shift.

A deeply integrated sustainability strategy is a powerful framework for driving profit to your business, building a robust and resilient business against climate shocks and securing your sustainable competitive advantage both in Kenya and globally.

Why Sustainability is Not a Cost Contributor

Sustainability, for a long time, has been handled reactively with the goal of ensuring businesses adhere to strict regulations by bodies such as NEMA. Businesses were therefore not motivated and only took action because the law required it. However, the new reality is that the reactive approach has limited many businesses from seeing the full extent of the benefits that sustainability has brought them. This includes the fact that it was intended to be a value-creation platform that could help businesses strategically optimise resources, inspire innovation and help them manage risks. In a country like Kenya, where there are many dynamic factors in businesses, a sustainability strategy becomes a critical tool for survival and growth.

The Four Pillars of Profitable Sustainability in Kenya

1.      Operational Efficiency and Cost reduction- the more you use resources efficiently, the more shillings you save, and this will ultimately create for you a strong buffer against currency fluctuations and inflation. Water, harvesting, use of solar power and other alternative sources of energy are examples of resource efficiency and cost reduction.

2.      Risk Mitigation & Resilience- the Kenyan economy is highly sensitive to climate change, and this means that being proactive and developing a sustainability strategy is the best insurance policy against such problems. It will strengthen your supply chain resilience, shielding you from supply chain disruptions because of predictions already laid down in the strategy, protect your business reputation against risks and offer you regulatory foresight. Being proactive will keep you ahead of all challenges that might occur.

3.      Innovation and Market Growth- Being proactive by having a sustainability strategy will help your business have a strong, sustainable competitive edge. It will enable you to develop new products, new services and help you access new market opportunities. This means that your business will be prone to more profit and profitability, have higher margins, and more opportunities for scalability.

4.      Productivity and Talent Attraction-your business will stand a better chance of becoming more purpose-driven, and this will attract the right talent. You attract a younger and dynamic workforce and also retain the talent that you already have. The overall effect is increased productivity for your business.

Best sustainability Strategy for business profit in Kenya at Greenspace Research and Consulting

As much as it is necessary to have a sustainability strategy, it is even more critical for you to have the best partner. Creating a sustainability strategy, especially one that can drive up profits for your business, can be a complex process. It requires expert understanding of deep local factors, global best practices and business experience. While the framework for a sustainability strategy is universal, to tailor one specific to the Kenyan market is another story. This is why Greenspace Research and Consulting is the best partner for you.  We have the experience and technical know-how to engineer an environmentally sound system and a robust engine to power up your bottom line. We are therefore uniquely equipped for the work.

Step 1 is having a materiality assessment, which is critical for gathering local intelligence and using it as a foundation for the rest of the decisions for the sustainability strategy. The strategy has to be hyper-localised, and this means that Greenspace Research and Consulting does not use templates or copy-paste information. We gather it on the ground to ensure that what you have fits perfectly with your needs.

Step 2 is integrating the strategy and aligning it as an actionable plan. The strategy needs to be incorporated holistically in your organisation to change current systems and mindset. This is, therefore, the process of bridging boardroom ideas with factory floor activities.

Step 3 is execution of the strategy and innovating your business, making the strategy tangible and a source of results. The execution process requires meticulous project management and working together with local partners to ensure that the strategy is well implemented.

Step 4 is evaluation and communication, which involves measuring, and what gets measured becomes easily managed by the business. The information, in terms of outcomes, benefits and success stories, is communicated to build the brand and communicate value.

Greenspace Research and Consulting is your trusted sustainability strategy partner. We understand that your sustainability strategy is not an abstract plan for saving the world but an opportunity to bring significant profit for your business. It is also an important plan to make your business future-proof, resilient, efficient and even more productive. We will help you create a map and a guide for turning the most unique challenges that businesses face in Kenya into opportunities for you to develop a sustainable competitive advantage.

Conclusion

Sustainability and profit are two sides of the same coin. The evidence is clear and substantial that a business can execute a robust sustainability strategy and generate business profit. This is a multifaceted tool driving profit in Kenya by buffering businesses against economic and climatic shocks, reducing costs through efficient resource use, and sparking innovation to attract the best human resources.

The question now is: how quickly can you build one for your business? Stop looking at it as a side project and instead place it as a core driver of your competitive strategy and the source of your long-term profitability.