Although
Carillion has been working for several years with The
Natural Step (a Swedish-based sustainability initiative,
of which Forum
for the Future is the UK licensee), I’ve only just
joined the Sustainability Committee at Carillion, and am still
very much "learning the ropes" from the inside.
But
two things are instantly apparent. First, if ever there was
a sector for demonstrating the hard-edged business case for
sustainable development, it has to be the construction sector.
Competition is fierce, margins are low, awareness through
the value chain is still pretty limited, and clients are either
not demanding enough (ie they couldn’t care less about
sustainability) or too demanding (ie they care about it, but
don’t want to pay for it!). In such circumstances, there’s
not a lot of room for "do-gooding".
But
that’s the whole point about sustainable development:
it means doing the right thing (in an environmentally and
socially responsible way) for the right reasons (in this case,
building shareholder value). Demonstrating that business case
is still a primitive science; very few companies have really
made the effort to quantify not just the tangible benefits
(eco-efficiency savings, lower cost of compliance etc) but
also the intangibles (brand value, reputation, the
ability to attract and retain the best staff, and so on).
Carillion has got some of that data already coming in, but
is now intent on developing a much more comprehensive business
case. This is obviously vital as far as Carillion’s investors
are concerned.
Secondly,
the implications of all this for Carillion’s own staff
are very important. Experience from other companies has demonstrated
time after time that if sustainable development is treated
as nothing more than another optional add-on, then the employees
of that company quickly "read the signals" and respond
accordingly. There has to be as tight a fit as possible between
a company’s corporate/commercial objectives, and its
sustainable development objectives. The work that Carillion
is doing in this area is genuinely groundbreaking.
That
kind of alignment is crucial if the company is to engage all
its employees in contributing in whatever way they can to
reinforcing Carillion’s leadership aspirations in this
area. That in turn depends on internalising the sustainable
development programme into all mainstream business activities
– and there is clearly a lot still to be done here to
increase awareness across all aspects of the business.
By
definition, any major construction company is bound to be
in the thick of contemporary debates about environmental and
social responsibility, resource productivity, new infrastructure
projects, and so on. These are often complex, contested issues
– which merely strengthens the case for pro-active engagement
rather than sitting around waiting to be taken by surprise
by the next controversy.
Whichever
way you cut it, the concept of "sustainable construction"
is going to become an increasingly important differentiator
in this sector. With billions of pounds going into new hospitals,
new schools, new infrastructure, let alone the normal flow
of new buildings for work, leisure and retail, it’s vitally
important that these inputs into the UK economy produce not
just economic benefits, but lasting social and environmental
benefits. Carillion has an impressive track record in responding
proactively to that challenge, and a clear leadership commitment
to driving that agenda even harder in the future. It’s
an exciting time for me to be joining its Sustainability Committee.
