7 steps to implementing sustainability in your IBP process

Integrated Business Planning could help companies super-charge their sustainability efforts, according to Oliver Wight. In a new whitepaper, experts from the firm have outlined seven ways for organisations to kick-start their green IBP efforts.

Business disruption is a fact of life, but it doesn’t have to spell disaster. By running an Integrated Business Planning (IBP) process, organisations can gain the agility to process data quickly and make smart and informed decisions. In this way, they can move fast to adapt and disrupt changing markets – responding rapidly to some of the most pressing issues in the world, delivering a competitive advantage in the process.

A strategic process that aligns an organisation's business objectives with its operational and financial plans, IBP can help to ensure cohesive decision-making and optimised performance. But according to experts from Oliver Wight, it can also position a firm to accelerate on its sustainability goals.

“By leveraging IBP to drive sustainability initiatives, organisations can create a robust framework for balancing financial performance with environmental stewardship,” explains Partner Mike Snape. This approach helps companies navigate the increasing environmental pressures and regulations and positions them to capitalise on the growing market demand for sustainable products and services.”

“As we look to the future, it's clear that sustainability will only become more critical to business success,” adds fellow Partner Flavio Pietrocola. “Companies that use IBP to drive their sustainability efforts will be well-positioned to thrive in this new reality, achieving true business excellence that creates value for all stakeholders – shareholders, employees, customers, and the environment.”

In the recently released report ‘Using Integrated Business Planning to bring your sustainability strategy to life’, Pietrocola and Snape have co-authored a comprehensive explanation of the benefits to this approach. In particular, IBP can boost portfolio planning, demand planning, and supply planning, providing a “forward-looking approach [which] helps companies prepare for various sustainability-related scenarios, from regulatory changes to shifts in consumer preferences.”

But adopting IBP for sustainability is easier said than done. For organisations looking to leverage their existing IBP process to drive sustainability performance, the experts have also recommended seven initial steps to get started.

Establish a sustainability scorecard

First, firms should develop clear, measurable sustainability metrics that align with their overall business strategy. According to Pietrocola, these might include “carbon emissions, water usage, waste reduction, percentage of sustainable materials used in products”, incorporated into a circular network.

Integrate sustainability data

Following on from this, business leaders need to work to ensure that sustainability data is incorporated into their IBP data sets and reports. The experts note that this may require “investment in new data collection and analysis tools”. 

Enhance scenario planning 

At the same time, firms must expand their scenario planning capabilities to include sustainability factors and potential environmental risks. Snape suggests this could involve “modelling the impact of carbon pricing, seasonal trends and extreme weather events, or shifts in consumer preferences” – particularly those relating to sustainable and circular products. 

Engage value chain stakeholders

Businesses must involve both internal and suppliers, customers, employees, and local communities in the sustainability aspects of the IBP process. This buy-in will be important for driving change successfully. 

Regular review and adjustment

Snape adds that organisations ought to “use the monthly IBP cycle to review progress on sustainability goals and make necessary adjustments consistently”. Scheduling a routine like this can help sustainability to remain a priority and allow for quick course corrections when needed in the course of a transformation.

Develop a sustainability roadmap

Create a long-term sustainability roadmap that aligns with your business strategy and IBP process. On that roadmap, the experts state there should be key milestones, initiatives, and targets outlined “over a multi-year horizon”. 

Foster a sustainability culture

Finally, companies need to use the IBP process to foster a culture of sustainability throughout the organisation. Pietrocola recommends that leaders “encourage innovation and ideas from all company levels” of the organisation to both help ensure employee buy-in, and to drive sustainability improvements with innovative new ideas.

The co-authors conclude, “By integrating sustainability into IBP, companies can turn environmental challenges into opportunities for innovation, efficiency, and growth, paving the way for a more sustainable and successful future.”