The 3Ps Series: Planet

What is ‘Planet’ in the 3Ps?

‘Planet’ forms the second leg in the 3Ps, right after ‘People’.  There is a growing trend among consumers around the world to change the product and services that they use due to concerns about climate change. The graph below, according to a survey from IPSOS, suggests that a global average of 69% consumers have made the change. It is interesting to note that consumers in developing economy such as India are willing to alter their consumption habits. On the contrary, consumers in economically developed regions such as the US and Japan have dropped below the global average.  

Eco-conscious consumers are increasingly putting pressure on companies to take responsibility and adapt to sustainable business models. This way companies are heading to reduce their carbon emission and utilize finite resources to generate maximum value out of their products. They are making the attempt to engage in environmentally charged activities which not only lead to profit but also ensure environmental sustainability.  

The Ecological Pillar of Sustainability

When it comes to corporate sustainability, company directors and investors are aware of the pressure that consumers are putting on them to be more conscious. The ecological pillar compels them to be accountable and understand that they have to abide by certain rules and regulations concerning environmental issues. This also means that companies come under the close scrutiny of governments who are responsible for implementing policies which focus on environmental developments. The UN has set up Sustainable Development Goals which address specific environmental concerns, such as: 

• To make cities and spaces more inclusive 
• Combat climate change by focusing on increasing product life span 
• Conserve finite resources from the waterbodies 
• Promote sustainable use of ecosystems 
• Focus on creating an inclusive and peaceful society 

Companies are expected to abide by these concerns and to work towards improving on them.  

The difficulty of assessing the Ecological Pillar

Despite its necessity, a challenge that businesses often face is how to measure the ecological pillar. Under the ‘Profit’ pillar which can be calculated in numbers, the Ecological Pillar cannot be reflected in income statements. It is also not always possible to quantify the waste generated or the CO2 emission, land reclamation, and other externalities which could be consequences of the company’s activities.  

One quick solution to this, however, could be benchmarking. It is a fruitful process of understanding, identifying, and analyzing the practices which the company takes over for sustainable development. It is beneficial in comparing the company’s environmental performance against certain standards of measure, such as whether the company has reduced waste generation or if they have become energy efficient. In the case of a transport and logistic company the benchmarking might help them gauge fuel spending or consumption of electricity. Benchmarking may differ across industries but it is a standard process of comparison through which companies can set their sustainable goals.   

Want to know more?

Our latest business simulation game, The Triple Connection, engages its participants in implementing a sustainable strategy for a virtual chocolate milk manufacturer. The Triple Connection finds its roots in the cacao industry and follows the path to create maximum value in its sustainable value chain. This kind of value creation requires multiple high-level roles to align on the concept of the 3Ps: People, Planet, Prosperity!