Measuring the ROI of Sustainability
Most publically listed companies with brand equity recognize the notion that the single-minded pursuit of profit and shareholder return at the expense of society and the environment is a business model ready for reinvention. Businesses must be part of society and not separate from it.
Some companies are on offense, believing (correctly in JetBlue’s view) that integrating an authentic wider purpose into their brand is a source of competitive advantage, long-term profitability. Fewer are optimistic and see opportunity and abundance. Others are on defense, taking steps to protect their position and the status quo. They are more pessimistic and reactive to competitive threats and concerns about scarcity. And some, on the fence, have not yet moved to act. (And it is worth asking how long no action will be taking as passive rather than defensive.)
JetBlue recently released a white paper – The Matter with Metrics, which outlines key ROI metrics every company or organization can adopt that will prove the value of sustainability to their brand and accelerate their progress.
Below are the top four ways a brand can measure the ROI of Sustainability:
1. Companies and organizations are recognizing the value of sustainability to the communities they serve and to the environment, and increasingly understand that sustainability promotes innovation, competitive advantage, long-term brand value, and corporate profitability.
2. Measuring the ROI of sustainability is critical because what gets measured can be managed and can get funded. Measurement is the key to a long-term commitment.
3. Measuring return on sustainability investment (ROSI) is substantially the same as measuring the ROI of any other business activity. It involves demonstrating how and why a program or initiative -- ideally an authentic reflection of the brand’s purpose – is effective against intended strategic goals.
4. Effective measurement is within the reach of all companies and organizations that value information as a driver of their business. They can adopt a conceptually simple framework of measurement in four areas, in most cases by leveraging or extending their existing measurement tools:
a. Measuring the return on Brand through the impact of consumer preference and loyalty
b. Measuring the return on Talent through the impact on employee engagement and retention
c. Measuring the return on Reputation when the program receives recognition and a following and promotes positive sentiment and word of mouth among key stakeholders
d. Measuring the financial return from the cost of investing in the actual sustainability Program against strategically chosen key performance indicators.
For more information about JetBlue’s Sustainability platform visit www.JetBlue.com/green.
Nancy Elder is Vice President of Communications at JetBlue Airways. She is also a Board Director and Co-Founder of the creative agency Matter Unlimited.
Mark Stapylton is President and Founder of BrandPanorama Research & Consulting LLC.
Contact Information:
Tamara Young
Manager Corporate Communications
JetBlue Airways
Desk: (718) 709-3537
Media Hotline (24/7): 718 709-3089
To Jet: Call 1-800-JETBLUE or log on to jetblue.com
