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Environment: Value to the
Top Line
builds upon the work of an
earlier GEMI primer, Environment: Value to Business (EVTB). The central
theme of EVTB was the strong connection between environmental activities
and business value, the bottom line. Companies have made great strides in
finding ways for environmental considerations to deliver operational or bottom
line value: reduced operating cost, increased resource efficiency and improved
time to market. Top line value or revenue growth was introduced, but explored
to a lesser degree. This tool fits well into the growing universe of GEMI
reports and publications dedicated to exploring the business value of
environmental activities throughout the distribution chain and in connection
with a company’s role with respect to society and the environment.
EVTL
is intended to provide
inspiration and ideas for senior managers, including product and business
development managers, business process owners, regional managers, environmental
managers, investor relations staff and senior executives.
The term “top line”
refers to what is represented by the top line of an operating or income
statement: sales. The Top Line Framework explores the implications of
these two dimensions—core strengths and company strategy—for delivering
environmental top line value. For purposes of this document, top line value
will consist of the following elements: revenues or sales; market share growth;
share price; and enhanced brand. The tool consists of five chapters as outlined
below:
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Chapter 1
deals with companies whose strategy is to
realize immediate revenue gains and whose core strength is product
innovation. These companies are inclined to develop products that solve
their customers’ environmental problems by either lowering customer
environmental costs or increasing customer environmental benefits.
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Chapter 2
deals with companies whose strategy is to grow
market share through promotion of brand image and whose strength is in
product innovation. These companies tend to develop environmentally
responsible products—products or services that are produced with, or whose
use involves, less environmental impact than those of competitors.
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Chapter 3
deals with companies whose strategy is brand
driven and whose strength is in customer and other stakeholder
relationships. These companies tend to promote environmental initiatives
as a way of enhancing their brand.
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Chapter 4
deals with companies whose strategy is immediate
revenue driven and whose strength is in relationships. These companies
tend to find ways to bundle environmental services with their products, or
replace products with services, as a way to provide the best total
solution to customers.
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Chapter 5
sets forth steps for companies to consider as
they move ahead with initiatives to realize environmental top line value
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