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Sustaining Profitability in a Green Environment

Sustaining Profitability in a Green Environment

From being a subject of concern to becoming a critical issue, climate change and sustainability have now forced themselves onto the agendas of most management Boards. Whilst some progressive organisations have already taken action others, perhaps with tighter margins, have delayed until it is clear that customers and government legislation all demand management action. A demand that has been compounded by rising input costs, disruption to supply chains and uncertainties over future inflation and interest rates. A commitment to net zero carbon emissions in the shortest possible time may be laudable but not if it results in the organisations demise.

So where to start when faced with trying to balance financial sustainability and environmental sustainability.

As always when dealing with uncertain changes and uncertain outcomes, the best approach is develop a series of scenarios each with its own operating plan to be referred to as the future gradually reveals itself. The scenarios need to consider:

  • Known and likely local and national government legislation including taxation
  • Known and likely technological developments supporting sustainability
  • Possible economic environments including higher interest rates and labour costs
  • Consideration of best practice

This is of course is in addition to:

  • Likely changes in customer demands
  • Likely changes in competitor activity

The fundamental principals of business planning remain the same, the only thing that is different today is the number of factors that organisations are having to juggle with and the current levels of uncertainty.

If you would like to understand how Davies & Robson can assist you in business planning, please call 01327 34909

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