Sustainability is definitely a major issue, albeit not often discussed, especially within the coal and tar sands industry. Finally, after many years of protesting and awareness campaigns, environmental effects from companies and projects are being taken into concern.
Recently, like several other groups, Standard Oil Co.‘s announced their exit from the coal and tar sands industry as well as their plan to phase out fossil-fuel use. The smart move on behalf the Rockefeller family will enable their company to move towards a more environmentally-friendly brand image. By increasing their Shared Value from cutting fossil fuels, Standard Oil Co. customers and the public will associate them with their sustainability attempt, enhancing their customer loyalty and company image. Also, there is a lot of money to be made in fossil-fuel based industries such as coal, tar, and oil, there will be a much higher risk for companies to remain in those industries in the long run. By projecting this new image, they have removed itself from a non-renewable, declining market and have positioned the company so that they will be able to easily switch to develop energy efficient alternatives. Standard Oil Co. should incorporate the sustainable image into their marketing strategy and to their advantage because it an easy change as well as posing as a huge benefit to the consumer. It is important that the company remembers to integrate it into the current company values and actually address the climate change issues, despite the results not appearing until the long run.
Standard Oil Co. made a wise decision to leave the coal and tar industry early and focus on improving their sustainability. Soon enough, other companies will realize the importance of Shared Value and will also follow Standard Oil Co.’s example.
Photo: https://theenergy.coop/sites/www.theenergy.coop/files/styles/full_node/public/slideshow_images/sustainable%20city.jpg?itok=vHJP82cp