Company Implementation

Optimizing Supply Chain

In the past, companies that took the initiative to aid biodiversity reaped the benefits of their efforts. For instance, IBM initiated policies for environmental conservation in the late 1960s and have promoted biodiversity and sustainability since then (Rebecca Henderson and Paulina Ponce de León Baridó, 2009). In fact, IBM annually invested 1 billion USD for sustainable research. IBM concluded that environmentally friendly computing solutions would result in 42 percent savings in addition to profit resulting from additional consumer investment. Two-thirds of IBM's consumers displayed willingness to pay higher prices for green technology (Hasper, 2001).

In cost-benefit analyses, companies often profit from investing in "green" methods. While many assume that sustainability is not an economically favorable investment, 66 percent of surveyed environmentally-conscious Swiss companies claimed that adoption of "environmental management systems" can result in cost reduction. At the same time, 80 percent of the aforementioned companies stated that product differentiation is among the identifying benefits of investing in environmentally-friendly technology (Hasper, 2001).

As biodiversity is becoming a more pressing and a more financially profitable topic, international companies are joining in the effort. For example, over 30 companies joined in the Business & Biodiversity Initiative. Among those companies are Solar World, Puma, and Volkswagen ("The Good Companies", 2011).

Expanding on its biodiversity initiative, Volkswagen integrated biodiversity into their original environmental management system, taking on the slogan "Volkswagen connects habitats." The company documented its progress in sustainability reports and established B2B platform to communicate their biodiversity standards to their suppliers and manufacturers. They cooperated with partners such as NABU in their efforts to decrease negative impacts on biodiversity and initiated the "Green Fleet Programme" which gave customers the option of leasing green vehicles. "Through the responsible use of recourses," Volkswagen did "not only protect the environment but also cut costs". In fact, according to Volkswagen's Sustainability Report for 2010-2011 year, company's sales and operating profit increased.