For myself, business and environmental sustainability go hand in hand. One of the most common ways a company produces profits is by reducing costs and being as efficient as possible. Studying as an Environmental Scientist, I have always preached emphasizing the benefits of environmental initiatives to help sway the general public’s opinions on sustainability. But up until just a couple weeks ago, I’ve always thought that sustainability would only extend to a company’s bottom line – a means to save money. This line of thinking aligns perfectly with sustainable thinking. By reducing wastes and stream lining processes, a company not only reduces their environmental footprint, they also save time and cut down on costs which in turn leads to higher year end results.

Reading Porter’s article about creating shared value has given me an exciting new perspective on how business and the environment are even more intertwined than I thought. By tackling social and environmental issues, businesses can also create economic value. In this sense by adopting sustainable initiatives businesses can attract  a wider audience as they continue to innovate – effectively improving their top line.

With this new found insight on sustainability marketing, I’m beginning to recognize how many companies are actively employing sustainable initiatives to add to both their top and bottom lines. Take for example Alcoa Corporation – a major producer of commodities such as Aluminum – who were recently named leaders in the World Index for Dow Jones Sustainability Indices. Over the summer I was fortunate enough to visit one of their aluminum smelting factories during my trip to Iceland. At the tour of the facility the operators emphasized how they were continually adopting more efficient smelting techniques that would produce less waste and how this particular factory was run entirely on renewable energy sources. They also highlighted the social issues Alcoa attempts to solve – providing education and less taxing work schedules for their employees. By taking on initiatives that were once thought of as adding significant costs, Alcoa has created value in building a more sustainable business with much happier and efficient workers. My experience observing Alcoa’s smelting facility in Iceland is just a small sliver of what has made them an industry leader but it remains a prime example of businesses using sustainability to create competitive advantages.