According to Judge Mervyn King, governance, strategy and sustainability are inseparable.
"One of the requirements of good governance is that the board approves the short- and long-term strategic direction of the company," he explains. In terms of long-term strategy, he says sustainability cannot be ignored.
"For example, a company which is a manufacturer and is using diesel-powered machinery in order to produce its product, must start looking, from a long-term sustainability point of view, to replacing that plant with renewable energy sources.
Firstly, because of the cost of diesel and secondly, because of the carbon emissions from the diesels engines which have become socially unacceptable."
He also cites the example of Procter and Gamble, who concentrated on the sustainability of their suppliers, questioning their practices. "The decision by Procter and Gamble's board to run a sustainable company is affecting its supply chain and having a positive impact, making those companies act in a 'greener' manner."
King also explains that green practices offer new business opportunities for companies. To use their example again, "Procter and Gamble have developed a cold water, biodegradable detergent for washing clothes. This saves on the use of electrical power and also reduces pollution of the water. It will attract more consumers," he says.
King will be addressing the subject of people, profit and planet in greater depth at the ITWeb Green IT Summit in August.
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