If you experience discord between the importance of sustainability to your business and the seemingly haphazard efforts to implement sustainable initiatives, you are not alone.
A recent report titled "Sustainability's Next Frontier" from Massachusetts Institute of Technology and Boston Consulting Group found that while nearly two-thirds of business respondents felt sustainability issues were important, only 10 percent of companies were fully able to tackle them. Linking sustainability and business strategy was a key difference in whether or not companies were able to make gains from sustainable practices.
The Abundance Cycle (right) bridges the gap and makes sustainability strategic.
Zipcar is at the forefront of companies using the 3p model (below). In just 14 years the company has grown exponentially from a few VW Beetles to igniting a $10 billion industry and serving over 810,000 members driving roughly 10,000 Zipcars in cities from Boston to Barcelona.
Most companies are founded to solve a problem or provide a new solution, not to “maximize shareholder value.” As Conscious Capitalism has shown, having a reason you exist beyond making money motivates employees, draws in customers, offers a clear litmus test for management and results in superior stock performance. Articulating your purpose is key to aligning strategy and sustainability. With Zipcar, the purpose of the company is “wheels when you want them.” In other words, personal mobility when customers need it without the burden of car ownership.
Along with the sharing economy measures used by Zipcar, a growing suite of roughly a dozen tactics are creating new business models, reducing environmental impact and strengthening society. As you can see from the exhibit below, each of the tactics is being used in the global auto industry. Once a company has determined its competitive strengths, it can use these tactics to reimagine its enterprise. More information and examples of each tactic listed below will soon be available at the Abundance Cycle website.
Examples of tactics starting in the upper left: Vehicle to grid charging station, Relay Rides; Walmart Advanced Vehicle Experience or WAVE fuel efficient truck; London’s SkyCycle bicycle highway; the Bullet Train inspired by a hummingbird’s beak, Abu Dhabi’s pod car; Philippine’s Clean Engine, Tata’s compressed air car; Fiat’s crowdsourced car Mio; Portland Streetcar in Portland, Ore.; Tesla; Citibikes in New York City.
For example, in lieu of customer communications extolling Zipcars relieving congestion, enhancing the local economy or reducing greenhouse gases, Zipcar focuses on how their service improves customers’ sex life and places customers on technology’s cutting edge. These messages perfectly fit their digital savvy, educated, urban clients.
As with all companies, Zipcar continues to evolve, investing in peer-to-peer car sharing company Relay Rides and being acquired in 2013 by Avis for roughly $500 million. It remains to be seen if their abundant framework will spread to the rest of the $2.5 trillion automobile and transportation industries. However, judging by the explosion of innovation outlined above, entry of car manufacturers into car sharing and the growth of companies like Uber, we are at the beginning of a wave of change.
Last November, strategic sustainability and the value web were introduced in Triple Pundit. Based on the feedback we received, we have since renamed it the Abundance Cycle.
Trying a Zipcar Could Improve Your Sex Life, PR Newswire
January 2013 Investor Presentation Regarding Avis Budget Group’s Acquisition of Zipcar
Charts courtesy of the Abundance Cycle
Advertisements courtesy of Zipcar
Professor Jay Friedlander is the Sharpe-McNally Chair of Green and Socially Responsible Business at College of the Atlantic (COA) in Bar Harbor, Maine. COA has been repeatedly cited as a leader in sustainability and Jay’s work has been covered in Fast Company, Princeton Review, CNN, Chronicle of Higher Education, Christian Science Monitor and Money amongst other media. Jay has been a frequent presenter at conferences in the United States, as well as New Zealand, Australia, and the European Union on sustainability, enterprise and innovation. Jay can be reached at firstname.lastname@example.org.
About the College of the Atlantic’s Sustainable Business Program: In the sustainable business program at the College of the Atlantic, students experience how environmental and social strategies bring about positive change in the world, while also strengthening the enterprise itself. Students in the program start companies, consult with enterprises and use these strategies in ventures ranging from alternative energy and advocacy to food systems and the creative economy.
TriplePundit has published articles from over 1000 contributors. If you'd like to be a guest author, please get in touch!