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Stimulating Sustainability in SMEs


           by Murk Peutz




          ISPIM conference
         Hamburg, June 2011
2




How to define and measure sustainability?

           Definition                                 Measurement
 Companies are defined
 sustainable if their executives
 say it is a top three priority in
 CEO agenda.                                   Analysing company documents
                  source: Bonini et al, 2010




 Companies are defined
                                               Auditing and allocating values
 sustainable by independent
                                                e.g. Dow Jones Sustainability
 auditors if their activitities and
                                               Index
 status are related to perceived
 stakeholder obligations.
                   source: Knoepfel, 2001
                                               Measuring company activity and
                                               attitude on actual variables
 Companies actually engage in                  e.g. Triple Bottom Line
 activities to balance                         Accounting
 people,planet with profit
                  Source: Wang and Lin, 2005




  www.syntens.nl/eu
3




Uptake of sustainability in SME’s is slow


              acknowledge…
Entrepreneurs acknowledge                  …but slowly implement…
                                                       implement…        … and fail to see opportunities.
                                                                                           opportunities.

‘sustainability is an important           ‘actually implementing           ‘seeing additional sustainability
driver for succes’                         energy and waste reduction’     opportunities’



      76%
                                                 55%
                                                                                  16%


 Source: EIM Business & Policy Research




   www.syntens.nl/eu
4




Implementing sustainability in SMEs


         Success factors                       Obstacles

Sustainable proposition                 Market adoption
                                               consumers only marginally value
I.     combining both sustainable and          sustainable qualities
       (new) non sustainable
        attributes                      Knowledge and organization
II.    managing image and credibility
       of the firm and it’s products    I.     Definitions and perceptions vary
                                               (moving targets)
Sustainable supply chain                II.    Limited resources to allocate on
 Source: Peutz (Groeien met Groen)             wide and varied field of interest
                                        III.   Limited partnering skills

                                        Limited external pressure

                                         Source: Masurel 2005, Keijzers 2008


     www.syntens.nl/eu
5




Sustainability Quick Scan
Self diagnosis tool developed to create awareness




     Features


 • Easy to complete

 • 34 questions

 • clear output




                            Source: http://dqs.syntens.nl




 www.syntens.nl/eu
6




Questions of the Sustainability Quick Scan


        Categories             Successfactor proxy

1. General questions          • Green ambition
   (name, # employees, …)       “to what extent is a company
                                 willing to engage in sustainability”
2. Ambition
                              • Green proposition
3. Product & Service            “to what extent is a company
                                 combining sustainability in it’s
4. Market & Marketing            market proposition”
5. Technology & ICT           • Green supplychain
                                “to what extent is company co-
6. Organization & Processes      operating with partners and
                                 ensuring green supply chains”



  www.syntens.nl/eu
7




Analysing 1000 Sustainability Quick Scans


            Results


•     Total score of company on




                                     GREEN SUPPLY CHAIN
      quick scan correlates with
      success factor “green
      proposition”

•     Total score of company on
      quick scan correlates with
      success factor “green supply
      chain”                                                    PROPOSITIONON
                                                          GREEN PROPOSITIONON




    www.syntens.nl/eu
8




                       GREEN PROPOSITION




GREEN SUPPLY CHAIN

   www.syntens.nl/eu
9




Rules for stimulating sustainability in SME’s


  Some Rules apply…                    …but further research needed

1. When raising awareness:             •   Results indicate a growth model
   sustainability must deliver value       of SMEs engaging in sustain-
   through cost savings or com-            ability; research should shed
   petitive advantage for the SME.         light on steps and conditions.

2. SMEs will be successfull if they:   •   Differentiation of specific skills,
   - deliver a green proposition to        like building green propositions,
   customers meaning combining             is to be expected as new key to
   ‘green’ and traditional features        success for SMEs; how to acquire
   - manage image and credibility          this needs to be studied
   - set up ‘green’ supply chains,
   the key to greening SME’s.




www.syntens.nl/eu

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syntens ispim stimulating sustainability SMEs June2011 conference

  • 1. Stimulating Sustainability in SMEs by Murk Peutz ISPIM conference Hamburg, June 2011
  • 2. 2 How to define and measure sustainability? Definition Measurement Companies are defined sustainable if their executives say it is a top three priority in CEO agenda. Analysing company documents source: Bonini et al, 2010 Companies are defined Auditing and allocating values sustainable by independent e.g. Dow Jones Sustainability auditors if their activitities and Index status are related to perceived stakeholder obligations. source: Knoepfel, 2001 Measuring company activity and attitude on actual variables Companies actually engage in e.g. Triple Bottom Line activities to balance Accounting people,planet with profit Source: Wang and Lin, 2005 www.syntens.nl/eu
  • 3. 3 Uptake of sustainability in SME’s is slow acknowledge… Entrepreneurs acknowledge …but slowly implement… implement… … and fail to see opportunities. opportunities. ‘sustainability is an important ‘actually implementing ‘seeing additional sustainability driver for succes’ energy and waste reduction’ opportunities’ 76% 55% 16% Source: EIM Business & Policy Research www.syntens.nl/eu
  • 4. 4 Implementing sustainability in SMEs Success factors Obstacles Sustainable proposition Market adoption consumers only marginally value I. combining both sustainable and sustainable qualities (new) non sustainable attributes Knowledge and organization II. managing image and credibility of the firm and it’s products I. Definitions and perceptions vary (moving targets) Sustainable supply chain II. Limited resources to allocate on Source: Peutz (Groeien met Groen) wide and varied field of interest III. Limited partnering skills Limited external pressure Source: Masurel 2005, Keijzers 2008 www.syntens.nl/eu
  • 5. 5 Sustainability Quick Scan Self diagnosis tool developed to create awareness Features • Easy to complete • 34 questions • clear output Source: http://dqs.syntens.nl www.syntens.nl/eu
  • 6. 6 Questions of the Sustainability Quick Scan Categories Successfactor proxy 1. General questions • Green ambition (name, # employees, …) “to what extent is a company willing to engage in sustainability” 2. Ambition • Green proposition 3. Product & Service “to what extent is a company combining sustainability in it’s 4. Market & Marketing market proposition” 5. Technology & ICT • Green supplychain “to what extent is company co- 6. Organization & Processes operating with partners and ensuring green supply chains” www.syntens.nl/eu
  • 7. 7 Analysing 1000 Sustainability Quick Scans Results • Total score of company on GREEN SUPPLY CHAIN quick scan correlates with success factor “green proposition” • Total score of company on quick scan correlates with success factor “green supply chain” PROPOSITIONON GREEN PROPOSITIONON www.syntens.nl/eu
  • 8. 8 GREEN PROPOSITION GREEN SUPPLY CHAIN www.syntens.nl/eu
  • 9. 9 Rules for stimulating sustainability in SME’s Some Rules apply… …but further research needed 1. When raising awareness: • Results indicate a growth model sustainability must deliver value of SMEs engaging in sustain- through cost savings or com- ability; research should shed petitive advantage for the SME. light on steps and conditions. 2. SMEs will be successfull if they: • Differentiation of specific skills, - deliver a green proposition to like building green propositions, customers meaning combining is to be expected as new key to ‘green’ and traditional features success for SMEs; how to acquire - manage image and credibility this needs to be studied - set up ‘green’ supply chains, the key to greening SME’s. www.syntens.nl/eu