Sustainable to The Core

Acting sustainably has huge benefits for the environment, but taking the environmentally friendly route also can have a bottom-line impact for businesses. For a recent study published in the "Journal of Production economics," Stephan Vachon of the Ivey School of Business examined how sustainable practices impact the financial performance of businesses. Vachon focused his research on sustainability initiatives implemented at Canadian manufacturing companies. these sustainability initiatives were targeted at both core processes (i.e., those involved in the actual production of a product) and non-core processes (e.g., building systems, waste management and transportation). Vachon found that the initiatives targeted at core processes, such as switching to sustainable product materials, deliver a much higher return to the company than initiatives related to non-core processes. In addition to the financial payback, Vachon found that focusing on sustainability initiatives related to core processes also develops greater worker knowledge and capabilities related to the production process.