Posted: September 07, 2012
The business value of sustainability
The financial markets are taking noticeBy Martha Young
First Data Corporation, a leading Colorado employer, is hosting a conversation later this month on the business value of undertaking sustainability initiatives within the company’s business practices. First Data, wholly owned by private equity company Kohlberg Kravis Roberts & Co. LP (KKR), provides electronic commerce and payment solutions to consumers, companies of all sizes, governments and financial institutions.
Here's why this conversation is important:
Over the past few years, there have been significant information flows on the business value of implementing sustainability initiatives; however, the companies being highlighted have most often been large, publically traded entities such as WalMart, Ford Motor and Proctor and Gamble. Their sustainability initiatives almost always tie directly to their CSR (corporate social responsibility) metrics and reports. These are, plain and simple, marketing tools designed to appeal to the emotions of buyers.
What is unusual about the upcoming First Data – KKR discussion is the role of private equity in the sustainable business practices conversation. KKR joining the conversation strongly suggests the recognition of the business value of implementing sustainability within a company has finally reached Wall Street.
This means that the financial markets are attributing additional value to companies that are tackling and reporting on sustainability practices. We aren’t talking small potatoes here like changing light bulbs. We are talking about big, bold initiatives that are meaningful and impactful: Initiatives like waste reduction, water use reduction and emissions measures.
Consider this: KKR is one of numerous, large, Wall Street-based companies actively backing the newly formed Sustainability Accounting Standards Board (SASB). The SASB is working with the investment community including financial firms, NGOs, and publically traded companies to create standard methods of reporting Environmental, Social, and Governance (ESG) data. Standardized reporting makes easy work of comparing companies within a sector.
Implementing sustainability initiatives has finally moved from the Early Adopter phase to the Early Majority. Getting reluctant stakeholders on board will become a whole lot easier once stock prices begin to reflect ESG data.
Register to attend the conversation on the business value of undertaking sustainability initiatives on Sept. 26 from 7:30 to 10 a.m., on the University of Colorado, Denver campus.Hear Ellen Sandberg from First Data and Elizabeth Seeger (via weblink) from KKR discuss the principles of sustainable business, the challenges they encountered and how they overcame them and the significant results they achieved. This is an interactive discussion with a Q&A session with the panelists.
Martha Young is principal at NovaAmber, LLC, a business strategy company based in Golden. Young has held positions as industry analyst, director of market research, competitive intelligence analyst, and sales associate. She has written books, articles, and papers regarding the intersection of technology and business for over 15 years. She has co-authored four books on the topics of virtual business processes, virtual business implementations, and project management for IT. Young can be reached at firstname.lastname@example.org or on Twitter @myoung_vbiz