252 significant conclusion was that outperformance was viewed as stronger in

252 significant conclusion was that outperformance

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252 significant conclusion was that outperformance was viewed as stronger in sectors where: (a) the customers are individual consumers instead of companies, (b) companies compete on the basis of brands and reputations and (c) where products significantly depend upon extracting large amounts of natural resources [13]. Maximising Profits Through Sustainability Carbon Reduction as a Tipping Point for Operational Change Solutions that actively reduce a company’s carbon footprint also often reduce running costs. Furthermore, companies are more willing to reconfigure their day to day operations through the added incentive of carbon reduction than through financial savings alone. Many simple employee behavioural practices that provide clear financial savings and could have been adopted at any time over the last decade, such as printing on both sides of office paper, are often only considered when the added incentive of decreased carbon footprint is introduced. In 2009 in order to reduce carbon emissions Finnish retailer Kesko reduced employee’s air travel by 20.7% and car travel by 18.8% through increased use of video conferencing [14]. Once again, despite clear financial savings, these measures are often only implemented with the added incentive of decreased emissions. International Sustainability Case Studies Progressive companies are already incorporating sustainable practices into their operations as a means to reducing operational costs and increasing long term financial and shareholder value. The following examples highlight proven management practices and cost-saving approaches in logistics, material reductions, waste and recycling and energy: Logistics ? In 2010 the number of manufacturing jobs in the United States increased for the first time since 1998. In the time period from December 2009 to February 2012 alone, the sector added 300,000 jobs and the trend is being referred to as ”insourcing”. Companies such as Ford, Honda, General Electric, Caterpillar and Intel have returned jobs that were once outsourced to cheaper labour back to the United States. For U.S. companies local manufacturing is once again becoming financially viable due to rising fuel costs and increased labour fees in many developing countries [15]. ? Walmart have improved their transport efficiency by calculating the most efficient route for each delivery and by reducing the number of “empty miles” that their trucks drive. They have also focused on how merchandise is stacked in their trailers. As a result of this pursuit for efficiency improvements, they delivered 57 million more cases in 2010 than the previous year, while driving 79 million fewer kilometres. Walmart calculated that this was equal to almost 40,000 tonnes of CO 2 emissions [16]. ? In the four years from 2007 to 2011 Tesco have reduced their carbon footprint per case of goods delivered by over 20% from 0.177 kg/CO 2 per case to 0.141 kg/CO 2 per case. The savings in 2011 have been achieved through a number of practices such as increasing the
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