We're in a recession. Should we still be talking about Sustainability?

This is the sort of question I'm getting a lot lately. In fact I was asked this very question at a dinner party recently. The dinner party guest was genuinely surprised I still had a job! So I thought, in the interest of justifying my existence (just joking.. well only slightly) I'd share some insights from others talking on this very subject. I’ve seen related stories in Ethical Corp, Financial Times, Forum for the Future and the Environmental Leader so clearly, this question is being asked all around the world.

To me it seems incredible that people would even ask this question. I enjoyed reading one blog from the company Intel which stated "I don’t see stories asking the question…Will the Recession put an end to Good Corporate Decision Making?…Saving Money through Conservation Efforts? Treating Employees and Communities Fairly? or Competing for the Environmentally Aware Consumer?" The blogger makes a good point.

Having said that, the thinking behind the question is logical. Companies focused on short term survival, it is suggested, can't possibly support long-term "feel good" initiatives to protect the environment or invest in community development.

The fact is this is a perfect time to be upping the ante on our sustainability efforts. While some traditional corporate responsibility and philanthropic initiatives may suffer, core elements of the sustainability agenda should survive or even thrive in the current climate.

"Eco-efficiency" is one of these core elements. Chris Tuppen, chief sustainability officer of BT in the UK said recently "in tough times, when people want lower costs, cutting energy activities delivers both cost savings and carbon reduction". Rolls Royce is another example. When they are building aircraft engines their focus is on fuel burn at certain revs. It is vital to be as efficient as possible to save the airline cost as well as reduce emissions. At Westpac we can translate these examples directly to one of our key strategic imperatives of improving productivity. I would expect most, if not all projects to simplify our products or processes will also result in reduced paper and energy used, therefore reducing our environmental impact.

Becoming more thrifty is playing out for individuals too. In the UK there are growing waiting lists for allotments (small plots of land set aside to grow food) and membership of 'Freecycle' (which is a similar concept to TradeMe except no money changes hands) has reached six million.

Of course, some eco-efficiency initiatives require considerable up-front capital outlay. As a result, in the current economic environment, these initiatives may find themselves on the back burner. The trick for businesses in the midst of a recession is to focus first on the low-cost operational efficiencies that will generate the greatest cost benefit to the business.

Sharon comments: "Hello - I believe you are right more and more people are becoming aware of cutting costs in many areas. One area I am interested in is the one of recycling and/or reusing items. This includes individuals and organisation for example - The NZ Post recycle centre based on the Kapiti Coast in Wellington started out life as a central point to refurbish, re-issue, reuse and recycle office furniture and equipment specifically for NZ Post. Now it has branched out to offering this service to all organisations NZ wide. Plese do not hesitate to contact me if you would like further information. recycle.centre@nzpost.co.nz"

Brendan comments: "I totally agree that there is no better time to be pushing sustainability, but I have to point out that the up front capital outlay is a huge myth. That is not to say that there is a large price tag on say Solar Hot Water upwards of $6000, however how many appliances for the home have similar price tags that do not pay you That flat screen tv, spa pool, surround sound system, heat pump etc. All of those have an ongoing cost to run If a solar hot water system is financed as part of a mortgage you can actually be cash flow positive the month you install it based on replacing electric hot water heating. Ignore the ridiculous pay back periods mentioned by suppliers and industry. How many other things we buy for our homes can claim to do that? Unfortunately whilst our buying decisions are based purely on advertised sticker price sustainability doesn't stand a chance."