Why Location is Critical to Understanding Sustainability
Executives realize that demonstrating sustainability can be a big competitive differentiator in a crowded marketplace, and can also generate significant cost savings for a business. Some businesses focus on C02 reductions. These reductions are usually further translated into cost reductions. While cost is important, it does not reflect sustainability. For example, for $10 in Massachusetts you could purchase about 3 gallons of gasoline, 100 kWh of electricity, or a few thousand gallons of water. These three items have a completely different sustainability value, but they cost the same. These costs change based on location and the discrepancy is based on the availability and abundance of the resources being used. If we can factor these changes into the cost structure, we need to factor these same things into the measure of sustainability.