By Max Tau, Capgemini Netherlands
Elections matter to sustainability, for obvious reasons. Making the profit case of achieving compliance, or forecasting the added costs. A global shift of political power and a call for serious transparency are opportunities for companies to update technology infrastructure to meet new demands.
In forecasting the journey on the economic horizon, businesses must act in advance to navigate compliance and transparency legislation.
Recent developments in the global political spectrum leads one to speculate that governments will ask more of industry-leaders in order to stimulate sustainability targets. This will happen on a global scale, the traditional model, where a transfer of production facilities to less than developed nations, is over.
The general trend has been recognized. While governments have been making commitments, internationally, for a very long time; the recent consumer demand for responsible production conditions and methods is spurring companies to take the profit potential seriously.
Consumer demand is an amazing force. In innovation, in production, and in sales/marketing. But something coming up could to pose a threat to those left unprepared.
Governmental demand is a greater force. While the wishes of the customer are in a suggestive tone, the compliance mandate is in a legal setting. Avoiding losses to customs fines and issues of non-compliance, often leading to an audit, will become even more vital to the majority of Capgemini’s partners and clients.
Accounting for the timely reporting and having the adequate defense in audit can only be done by automating your current environmental/CSR technology infrastructure. I have recently written about how big data innovations are going to change both the ability and the regulatory demand for companies to have real time insight into their overall EH&S, HR, Sustainability, and production utility usage (energy and water) processes.
Companies now pride themselves on reaching milestones like 5 million injury free days at production facilities, and achieving ISO 14000 designation. LEED Certified facilities and a product made to consumer CSR demands.
By integrating elements like Kanban external procurement and supply chain oriented environmental plug-ins from leading software companies, users will be able to both maintain levels by acting in advance to adjust course or make calculations associated with extra costs.
The driver has always needed to be profit.
Finally there is a meeting of consumer driven profit and governmental regulatory savings profit. Implementing these solutions can be done faster than ever before, and usually integrate smoothly within existing technology infrastructures, and can be adjusted to meet new IT environments.
A serious and honest look at the political landscape internationally sees a shift towards a new regulatory landscape. It is of my opinion that this can be a real opportunity for companies to be structurally sound to meet these challenges by updating their technology surrounding compliance.
Max Tau is a technology and Supply Chain Execution consultant at Capgemini Netherlands. As a member of the Sustainability Framework within Capgemini, he specializes in information technology based solutions to environmental and governance related targets.