Why Efficiency Alone Isn't Good Enough

Why Efficiency Alone Isn't Good Enough


As you know, the UN IPCC recently released a study that used its strongest language yet indicating human behavior is the leading cause of global warming. SAP CSO, Dr. Peter Graf, has put together his response to the news, asking why – given the worldwide interest in sustainability – are we not making more progress? He argues that businesses play a critical role to play here, and they need to pursue more than just environmental or resource efficiency. For long lasting change, companies must undergo a complete business model transformation. And those companies need people (from the boardroom to the shop floor) that are inspired to make and implement on a daily basis.

Monday, October 14, 2013 - 11:20am


Recently the UN Intergovernmental Panel on Climate Change released a study that used its strongest language yet indicating human behavior is the leading cause of global warming. For most of us who follow climate news closely, this isn't really a surprise.

The real mind twister is this: Why, given the worldwide popularity of sustainability, energy efficiency gains all around us and record participation in global movements such as the UN Global Compact or the Carbon Disclosure Project, are we not making more progress? Why does the situation get worse, not better?

Put simply, the answer lies in the fact that business growth is connected to increased resource consumption. If you want to sell more goods or services, you will need to use more resources to create the goods or provide the services.

For this very reason, companies have optimized the consumption of resources by their products during production and use, so they can more effectively expand their margins and compete in the marketplace.

For example, the automotive industry has increased the fuel efficiency of passenger cars from 15 mpg in 1970 to more than 24 mpg today. This 60 percent increase, in essence, represents the industry's drive for more efficiency.

Continue reading the original blog by Peter Graf of SAP on TriplePundit >>

Original source TriplePundit