Like many companies, Shoe Brand has come to realize that a broad sustainability program is essential to doing business in this era of global commitments. Investors wanted measurable sustainability improvements reflected in earnings statements year after year. And brand executives knew that economic practices could help retain loyal customers, who are increasingly willing to pay more for cool products with value, as well as being a new angle to identify and uncover opportunities in emerging markets. 

Our four-week shoe company diagnostic study included both an outside-in and inside-out analysis. We explored which aspects of sustainability were most important to customers, executives, regulators and other stakeholders, and examined the factors that influence company growth and performance. This dual approach demonstrated that a sustainability program can be a source of real profit. 

We presented executives with a series of technology initiatives that could improve the company’s bottom line, each example accompanied by carefully measured levels of impact on EBITDA. We generated specific targets and identified key performance indicators to help the company track progress. 

Within 10 weeks, we provided the brand with a detailed roadmap outlining how to increase profits through product development and optimize costs through productivity improvements. Once implemented, this plan would allow the company to achieve an increase in EBITDA of about 10 points from value creation activities (cost savings, energy savings, revenue growth and other opportunities) and another 2-3 points from risk reduction (increased energy consumption). prices, regulatory threats and related potential impacts). 

Today, the shoe company is implementing many of these initiatives and plans to launch others once the global pandemic and war subside. The company is changing the way it educates its employees about risk scenarios and overall market sensitivity. Significant stakeholder value is being created, and is in a much better position to respond to more stringent regulations, rising energy prices, and changing consumer demand.