FEATURE : SUSTAINABILITY
New business concepts transcend existing approaches to open up a new way of thinking . Sustainability now requires such a trajectory . Total cost of sustainability is a new business concept for thinking about that assesses all aspects of a sustainability strategy , extending beyond ESGs and sustainability targets , explains Natalya Makarochkina at Schneider Electric .
Total cost of ownership is cited as a comprehensive assessment tool or “ an analysis that looks at the hidden costs beyond price ”. Business concepts develop to give new perspectives and insights .
In technology , total cost of ownership had particular resonance for CIOs , where the capital expenditure for a new data centre was highly impacted by the design configuration , operating costs improved with energy efficiency , and reliability costs were carefully balanced with mitigating the risks of any outages – also costly in terms of business reputation . Utilising these headings , the various impacts both positive and negative , could be more fully understood . of future generations to meet their own needs . It ’ s a holistic approach that considers the economic , social , and environmental aspects .
Attitudes towards sustainability have evolved significantly in recent times , even within the last year or so . One study found that almost a third ( 30 %) of executives report having made significant progress in executing sustainability strategies , which is up from 10 % on the year previously . While many admit to still struggling to find investment , there is little doubt that boardroom attitudes are changing to incorporate sustainability as part of everything , from product lifecycles , and services , to operations , procurement , and HR .
Companies at the leading edge of sustainability are looking for better initiatives and solutions ahead of any imposed legislation . It ’ s about innovating from an organisational perspective to not only constantly transform but to also guide customers and partners along their own sustainability transformation .
Today , the potential negative impact or ‘ cost ’ with regards to sustainability , and protecting our planet , is more critical . Most organisations agree it is essential to conduct business operations sustainably , in a way that allows not only our environment , but economies and societies to thrive . In light of the challenge , it ’ s time to expand our approach .
The vision for the future of sustainability happens primarily in the C-suite . Driven by the CEO , the CIO is pivotal in partnering with senior executives as digital transformation and sustainability reach an inflection point driven by the rapid technological advances in AI .
A Holistic C-Suite Concept for Businesses at the Forefront
This year , Schneider Electric was named as the world ’ s most sustainable company by TIME Magazine . Our definition of sustainability is the ability to meet the needs of the present without compromising the ability
Total cost of sustainability , source : Schneider Electric
Total Cost of Sustainability is a way of thinking about and implementing sustainability that continuously assesses all aspects of a sustainability strategy , including costs , business benefits , reputational standing , market perception , social , and environmental impact .
Total cost of ownership to total cost of sustainability
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