How Business Analysts can help support your Sustainability initiatives
Forbes claims that 88% of consumers will be more loyal to a company that openly supports social or environmental issues. Considering this, now more than ever, Sustainability has become a fundamental focal point for businesses across all industries as they “go green”. As organisations endeavour to incorporate sustainable practices into their operations on a day-to-day level, the role of Business Analysts is becoming increasingly vital; although 90% of business leaders believe in the necessity of sustainability, only 60% of companies have an effective sustainability strategy (Forbes). This blog will explore the significant role that Business Analysts can provide in both supporting your sustainability initiatives and driving positive change within your organisation.
SDG’s - what are they and how do they relate to my business?
In order for businesses to implement effective sustainable practices, there must first be an understanding of the United Nations’ Sustainable Development Goals for 2030, which are described as “the blueprint to achieve a better and more sustainable future for all”. Their objective is to provide a pragmatic framework for communicating global challenges and encouraging sustainability progress - they aim to end poverty, eliminate inequality, protect the environment and ensure all people are able to exercise their basic human rights. In October of 2021, the eleventh BAWI (Business Analysis for Sustainability) Conference took place, seeking to discuss the importance of the SDG’s. President of the Italian Chapter of the IIBA, Prassede Colombo, convincingly stated that “the knowledge of the SDGs’ impacts … is the key to understanding real needs and to exploring new solutions”. Business Analysis has a fundamental role in evaluating these needs/ impacts and providing answers.
What can Business Analysts do to help incorporate the SDGs and Sustainability?
1) Sustainability Assessments:
BAs are able to identify areas within the organisation where sustainability can be incorporated, through a series of rigorous assessments and research into the business’ current policies, practices and values. They provide help with energy consumption analysis, waste management, supply chain practices and other relevant factors in order to determine the company’s environmental impact.
2) Identifying chances for process optimization
A major aspect of business analytics is the identification of process optimization opportunities. Within the context of Sustainability, this requires solutions that streamline operations, minimise waste and maximise efficiency. BAs will carry out process mapping exercises to reveal areas where resource consumption can be decreased or eliminated, as well as presenting innovative solutions such as digitization of paper-based processes, automation of energy management systems, or the implementation of circular economy principles. “Going green” makes a space for business analysis through an environmental lens, with particular emphasis on aspects of operations such as reduced energy and water usage, fewer emissions and less waste. A McKinsey study found a significant correlation between a company’s resource efficiency and the strength of its financial performance. By reducing resource costs, the study found that a company can improve operating profits by up to 60%. Business Analysts provide impactful guidance on resource efficiency.
3) Aligning SDGs to Business Objectives:
Business analysts play an essential role in identifying and aligning the objectives of an organisation with certain SDG’s. They are able to put forward areas within the business that show potential for positive impact and map relevant SDG’s to those areas. Because BA’s have a deep understanding of the relationships between business processes, products and services, they are able to offer crucial guidance regarding the relevance of certain SDG’s to that organisation’s values.
4) Conducting Gap Analysis:
After the SDG’s have been mapped to the business objectives, BAs conduct a gap analysis in order to evaluate the organisation’s current sustainability practices, analysing existing policies, processes and initiatives. This is so they are able to identify the areas of improvement that need to happen in relation to the targeted SDG’s. The research further reveals the key strengths and weaknesses of the company and therefore allows for the development of targeted strategies and action plans.
5) Developing sustainable business strategies
A primary role of Business Analysts is developing strategic plans, and this skill is instrumental in moulding your sustainability strategy. Through collaborating with stakeholders, BAs can gain access to diverse perspectives about sustainability goals. They are able to propose sustainable practices in alignment with your business objectives, such as energy-efficient processes, waste reduction strategies, or responsible supply chain management. Business analysts also facilitate the development of key performance indicators (KPIs) and measurement frameworks to track progress towards sustainability targets.
Conclusion
The UN states that “climate change is a global issue that affects everyone, everywhere”, and it is for this reason that Sustainability must be at the foreground and heart of your organisation’s operations, values and practices. Moreover, sustainable practices help not only the World but your business, too - 88% of sustainable business analysis studies show that incorporating good ESG practices within a business strategy leads to a better operational performance (Harvard Business Review). Business Analysis helps to ensure that the needs of present and future generations are met and that solutions are implemented that tackle the 3Ps - creating positive impacts for the Planet, People and Prosperity.