Since 2010, I penned a book called Sustainability Management that set the stage for the launch of Columbia’s Master of Sustainability Management program. This experience solidified my belief that sustainability is a critical management principle. Although I have been teaching management and environmental policy since the early 1980s, it wasn’t until about 25 years later that I saw the convergence of environmental protection with organizational management, emerging as a fundamental management principle.
Similar to human resources, finance, accounting, marketing, performance measurement, strategic planning, and operations management, I view concern over an organization’s resource use and its impact on the community as integral to the organization’s cost structure and business model. Initially, I viewed energy efficiency as the most easily attainable goal to pursue. Subsequently, water and waste management emerged as areas where organizations could trim costs while enhancing environmental quality.
By 2010, I recognized that organizations attracting customers and employees were those that paid attention to their environmental footprint. It became apparent that companies were profiting in a burgeoning green economy due to their market appeal and mission-driven ethos. Drawing insights from Total Quality Management, the concept of eliminating waste from operations and focusing on supplier and customer relationships seemed a precursor to addressing resource wastage and environmental impact.
Advancements in renewable energy technology and battery storage emerged as effective methods to reduce energy costs and environmental impact. The field of industrial ecology was developing strategies to convert production waste into valuable resources. As early 20th-century climate models accurately predicted sea level rise and extreme weather events, investors began highlighting concerns regarding the financial implications of environmental risks.
Companies shifted from greenwashing public relations to fully integrating sustainability management into high-quality organizational practices. Investors now demand detailed data on environmental risk and greenhouse gas emissions. Companies are producing annual sustainability reports or incorporating these factors into their yearly shareholder reports.
In a recent article published by the Wall Street Journal, Chief Sustainability Officers are portrayed as pivotal figures in modern businesses. The professional journey of Sophia Mendelsohn, a Columbia Master of Sustainability Management program graduate and now the Chief Sustainability Officer of SAP, exemplifies this shift from peripheral marketing roles to key positions within a company’s core operations and growth strategies.
Over the years, I have witnessed a broadening definition of sustainability management to encompass organizational governance, staff diversity, and community impact. While my primary focus remains on environmental sustainability, the field of sustainability management now encapsulates a range of crucial considerations beyond just environmental factors.
The rise of Chief Sustainability Officers in private companies signals a growing emphasis on sustainability management as a vital component of corporate governance. This trend is being mirrored in the public sector, with the establishment of the Office of the Federal Chief Sustainability Officer under President Biden’s administration.
Despite some progress, challenges remain in achieving widespread sustainability management adoption. However, the increasing integration of sustainability principles into corporate structures is undeniable. As our world grapples with growing environmental and resource demands, sustainability management is poised to become a standard business practice.
It is no longer a niche concern but a central aspect of strategic management. Despite political and economic obstacles, the shift towards sustainability is inevitable due to technological advancements and market forces. Sustainability management is the contemporary response to a complex and competitive business landscape, setting the stage for future financial success.
