Why Sustainability Is The Key Driver Of Innovation Essay

1210 Words5 Pages
In a Harvard Business Review (HBR) article, “Why Sustainability is now the Key Driver of Innovation”, the contributors argue against the common view: that as businesses become more environmentally friendly they become less competitive and profitable (Nidumolu, Prahalad, & Rangaswami, 2009) The contributors go on to say that companies who initiate environmental sustainability will develop competencies that competitors won’t be able to match and that ultimately, “sustainability will always be an integral part of development” (Nidumolu et al., 2009). In the year 2016, their statements are still valid and applicable to the biggest corporations in America. The largest corporation by revenue in America with over 482 billion dollars is Walmart (“Wal-Mart”).…show more content…
As the Sustainability Leaders badge provides an incentive for manufactures who supply Walmart to become more environmentally friendly, Walmart has taken more direct approaches. As Walmart is the world’s largest grocery store, it has taken initiative in improving agricultural practices by their suppliers in the their supply chain. Walmart has collaborated with fifteen large suppliers that account for thirty percent of their food and beverage sales to implement farming practices that optimize fertilizer and crop rotations with the goal of reducing greenhouse gasses by 2.3 million metric tons (MMT) (“Sustainable”). Highlighted by Joel Makower, an expert on sustainable business and founder of GreenBiz, Walmart has reached their goal set in 2010 by cutting 20 MMT from their supply chain (Makower). Makower states: “Walmart’s sustainability initiatives are having a real impact, both on its operations and those of the companies in its supply chain, though some of that progress is offset by the company’s growth”…show more content…
One of the biggest sustainable projects Target has initiated is their goal for one-hundred percent of their seafood offerings to be one-hundred percent sustainable and traceable (“2014”). Because Target receives their fish form supplier, they must rely on the suppliers to be able to trace the point of harvest or capture. Target has partnered with FishWise, a nonprofit organization that helps increase the supply of sustainable seafood by providing environmentally friendly tools for the seafood industry (“2014”). In improving their supply chain and process, Target has set goals in adopting more cleaner, fuel-efficient transportation practices. One way they are doing this is strategically selecting locations to open new distribution centers that enable distributors to travel less miles
Open Document