In reference to: https://hbr.org/2017/10/how-our-company-connected-our-strategy-to-sustainability-goals

On the Harvard Business Review, Michael W. Lamach, CEO of Ingersoll Rand, discusses in his post his company, Ingersoll Rand, and its success in working towards long-term sustainability.

Ingersoll Rand is a diversified, global company whose products and services are geared towards customers in “global commercial, industrial and residential markets”. It’s efforts in sustainability are mainly focused on climate change.

What I found most interesting about this post was that Lamach didn’t focus on the technical side of sustainability. He focused on the main driving force of a company that would ultimately play the biggest role in sustainability: the employees. The following are main suggestions mentioned throughout Lamach’s post:  

Make your goals personal.

Employee engagement scores for Ingersoll and Rand are top ranking. This can be attributed to the company’s involvement in providing more green services to the public. I believe this is a crucial aspect of business. Knowing you are working towards a greater good is both rewarding and motivating, leading to an overall more productive and sustainable company. This sense of purpose empowers employees and allows companies to reach their goals.

In 2016, the United Nations created 17 goals, aimed at tackling poverty, protecting the planet, and ensuring global peace and prosperity, known as the “Sustainable Development Goals”. Ingersoll Rand took action and aligned itself with 11 of these goals, proving its efforts are contributing to large-scale, positive change. In 2016, the company’s Green Teams saw great importance in these goals and succeeded in “diverting 2.4 million pounds of waste from landfills and saving more than 2.2 million gallons of water”.

Michael W. Lamach

“Track, measure, and recognize.”

This applies to both the company level and the global level. For example, Ingersoll measures its environmental impact with greenhouse gas calculators that track product-related emissions. Several teams are responsible for collecting and analyzing the data then sharing the results. I believe that tracking progress is key for a company when sticking to its big goals. Being able to visualize and see changes happening in both your company and its global effects is what will motivate employees to continue their efforts towards achieving sustainability. Lamach also makes it clear that recognizing the employees that work through these processes is equally as important as the processes themselves in terms of a company’s success.

“Be bold.”

Lamach’s final suggestion for incorporating sustainability into your business is to “be bold”.  I think a good idea would be to create a BHAG for your company; to have a clear, main focus that employees can understand and take to heart. BHAGs are great for encouraging progress, and that is exactly what a company needs when beginning its journey to a more sustainable future.

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“Do you think using furs today is still modern? I don’t think it’s still modern and that’s the reason why we decided not to do that. It’s a little bit out-dated,”

Gucci has recently made a big move in banning the use of the fur in all of its future products. Fur fashion has longtime been a staple in consumer’s wardrobes but as we progress into a more ethically conscious society, the fur fad is quickly fading.

Fur coats by Gucci

Millennials, described by Deloitte as “more ethically minded than previous generations” do not support animal exploitation by any means. Though fur fashion is still popular with some of its older clientele, millennials “account for more than half of Gucci’s shoppers, up from 40 percent two years ago”. This number is only going to grow. In order to maintain a sustainable future in the fashion industry, Gucci decided to align its values with what consumers of today want. Their value proposition now promises consumers cruelty-free fashion. This will increase their target market as consumers who may not have bought from Gucci prior to this because of their use of fur will be more likely to start purchasing their products. This will also help the company keep existing customers who may have left. The loss of profits they lose from eliminating fur will be made up through increased customer demand and profits may even increase.

Animals exploited for their fur often live in terrible conditions

Many companies have already made the transition to cruelty-free fashion including Tommy Hilfiger, Stella McCartney, Hugo Boss, Armani and Ralph Lauren. However, several companies in competition with Gucci continue to use real fur in their products, including Michael Kors, Burberry, and Balenciaga. High-end, cruelty-free brands are still somewhat of a “blue ocean”. Entering this niche is therefore a smart decision on Gucci’s part.

Aside from going cruelty-free, Gucci is taking on more social responsibility.  As the brand’s website explains, “We recognize that the philosophy of “Sustainable Value” is at the heart of our management policies and our corporate conduct, which means that we have implemented a process to integrate social, environmental, ethical, human rights and consumer concerns into our business operations.” Gucci is  donating $1 million to Unicef’s Girl Empowerment initiative to fund teenage education and health drives. Gender diversity is also a core value of the company now, with over 60% of employees being female, including several high positions. Despite being widely successful, it is still important for a brand like Gucci to adjust overtime with what is most valued by its consumers. Maintaining a strong, respected relationship with the public will ensure sustainable success in the future.

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