With growing trend of Sustainability topics, I recently have an interesting read on Sustainable Value Creation (SVC). Value Creation is defined as benefit delivered to consumers from existing capital, in short Value = Benefits − Cost (cost includes economic risk). Borrowing from this definition, SVC refers to the value creation in a sustainable way.
The subject touches SVC from the perspective of CEO in major organisations. Not surprisingly, the top ranked SVC is brand, trust, reputation and revenue growth. Thus, I feel that it will be worthwhile to apply this concept using my perspective from an end consumer.
- Organisation must provide adequate cost-benefits analysis of Sustainability vs Non-Sustainability to consumers.
- Organisation must give clear transparency on sustainable efforts and processes.
- Consumers must easily recognise Green Standards for Organisation e.g. ISO 14091, Adaptation to climate change – Guidelines on vulnerability, impacts and risk assessment.
- Consumers shall be given incentives to be Green instead of being penalized e.g. Carbon Rebates vs Carbon Taxes.
What do you think should be your SVC?