TQM Project

Topic : Sustainability and Green Quality

Names

Esraa Ahmed Mohammed 292100093 ( Team Leader )

Myriam Osama Nagib 292000312

Salwa Hazem Abdullah 292100251

Karim Mohammed Afifi 292100203

Mariam Haitham Mohammed 292100067

Abdrehman Soliman 291900593

Why is sustainability important in business?

One of the biggest challenges of our time, even at the peak of the COVID-19 pandemic, is the

climate crisis. The call for sustainability to combat climate change and its impacts is now louder

than ever. However, sustainability is not just environmentalism. It is a business approach to creating

long-term value by considering how a given organisation operates in the ecological, social and

economic environment. From a broader perspective, a sustainable business is one whose purpose

and actions are equally grounded in financial, environmental

and social concerns. In the past, businesses were trying to be good corporate citizens, focusing on

energy conservation and offering green products. However, this was not central to the business

strategy. More recently, many businesses have begun to embrace sustainability and view it as a

more integral component of their business strategy. There is no question that sustainability does not

mean sacrificing profits or put success on the back burner. Instead, a business that does not integrate

sustainability into its strategy is less successful in several ways. Companies are now proactive about

sustainability as the benefits of being sustainable are becoming well-known. Some of the major

advantages for taking up sustainability in

business are:

1. Reduce energy usage and waste. Sustainability can shape how key resources like energy, carbon,

water, materials and waste are used throughout the supply chain. Most businesses that start

implementing sustainable practices almost immediately notice a reduction in their energy demand

and the waste they generate. The development of sustainable business practices can help companies
reduce their carbon footprint, become energy efficient, and save overhead costs. Reducing their

environmental impact can not only be financially lucrative but can become a great

selling point.

2. Enhance brand image and build customer loyalty. Sustainability can become a key component in

buying decisions. In 2021, customers are more aware than ever of how their buying choices can

affect businesses and the difference between climate action vs greenwashing. There are likely to

buy from companies that are mindful of their impact on society and the environment. Thus,

sustainability improves businesses brand image and gives them a competitive advantage over

competitors.

3. Increase revenues. Sustainable strategies can boost revenues, cut operating costs and achieve

better borrowing rates. The more sustainable a business becomes, the ‫ك‬ess it pays on its energy bill.

Cost savings can be reinvested in additional sustainability efforts to expand a business's positive

impact on the planet. The governments often offer tax credits, rebates, and savings to those

companies going green. Based on Deutsche Bank's research, companies with high ratings for

environmental, social, and governance (ESG) factors show a lower debt and equity cost. On the

contrary, companies with high ESG ratings outperform the market in the medium (three to five

years) and long (five to ten years) term. Indeed, more and more investors are interested in

incorporating ESG into their investment analysis and decision-making. More than 2,000 studies

concluded that companies with strong ESG practices produce better corporate financial

performance (Friede et al., 2015). Attract investments and funds. Many financial and investment

experts have found

that organisations with sustainability plans are likely to attract investors more than

those who do not have one.

5. Increase employee retention and recruitment. Sustainable companies are more likely to treat

employees as critical stakeholders, increasing employee retention and productivity. Employees want

to work in companies that integrate ESG strategies in business processes and thus "do the right

thing". A recent study on how climate change and Covid are transforming workplaces1 showed that

65% of respondents

were more likely to work for a company with a strong environmental policy, and 72%

were concerned about environmental ethics.

6. Increase business ability to comply with the regulation. Incorporating sustainability into business

practices allows companies to comply with regulations and avoid any non-compliance costs. A

sustainable business can be qualified for reductions in environmental taxes such as the climate

change levy.

Improving the quality and speed of green new product development can be achieved through

a variety of strategies. Here are some key steps you can take:

Set clear sustainability goals: Clearly define what you want to accomplish with your green product

development efforts. Whether it's reducing carbon emissions, using more sustainable materials, or

improving energy efficiency, having specific goals will guide your development process

Integrate sustainability into the early stages: Incorporate sustainability considerations right from

the beginning of the product development process. Have dedicated team members or consultants

who specialize in green design work alongside engineers and designers to ensure sustainable

practices are embedded into the product's design and specifications.

Collaborate and partner: Engage with suppliers, manufacturers, and other stakeholders to form

partnerships that share your sustainability objectives. Collaborating with other organizations that

have expertise in sustainable practices can help accelerate the development process and enhance the

quality of your products.

Streamline the decision-making process: Implement efficient decision-making systems that allow

for faster and more informed choices. This can include establishing clear criteria for evaluating and

selecting sustainable materials, technologies, and manufacturing processes.

Invest in research and development: Allocate resources for dedicated research and development

(R&D) efforts specifically focused on green technologies and sustainable materials. By investing in

R&D, you can stay at the forefront of innovation and discover new ways to improve the quality and

speed of your green product development.

Utilize rapid prototyping and iterative design: Employ rapid prototyping techniques and iterative

design processes to accelerate the development timeline. This allows for quick testing, feedback,

and refinement of prototypes, leading to faster product iterations and better final designs.

Implement effective project management: Implement robust project management practices to

ensure efficient coordination, tracking, and accountability throughout the development process.

This includes setting clear timelines, milestones, and regular progress reviews to keep the project on

track and identify any potential bottlenecks.

Leverage digital tools and technologies: Utilize digital tools, such as computer-aided design

(CAD), simulation software, and virtual testing environments to facilitate faster and more accurate

product development. These tools can help identify potential issues early on and optimize designs

before physical prototypes are created.

Build a culture of innovation and sustainability: Foster a culture within your organization that

encourages innovation and embraces sustainable practices. Encourage employees to identify and

share ideas for green product development, and provide training and support to enhance their

understanding of sustainability principles.

Continuous improvement and learning: Continuously evaluate and learn from each development

project to identify areas for improvement. Implement feedback loops and gather insights from
customers, suppliers, and other stakeholders to refine your processes and enhance the quality and

speed of future green product development initiatives.

By implementing these strategies, you can enhance the quality and speed of your green new product

development while also contributing to a more sustainable future.

Goals of Sustainability and Green Quality:

What does it aim to achieve?

Enhancing productivity: By creating incentives for greater efficiency in the use of natural

resources, reducing waste and energy consumption, unlocking opportunities for innovation and

value creation, and allocating resources to the highest value use.

Boosting investor confidence: Through greater predictability in how governments deal with major

environmental issues.

Opening up new markets: By stimulating demand for green goods, services and technologies.

Contributing to fiscal consolidation: by mobilizing revenues through green taxes and through the

elimination of environmentally harmful subsidies. These measures can also help to generate or free

up resources for anti-poverty programs in such areas as water supply and sanitation, or other pro-

poor investments.

Reducing risks of negative shocks to growth: Due to resource bottlenecks, as well as damaging

and potentially irreversible environmental impacts.

Strategies for greener growth need to be tailored to fit specific country circumstances: They

will need to carefully consider how to manage any potential trade-offs and best exploit the

synergies between green growth and poverty reduction. The latter include, for example, bringing

more efficient infrastructure to people (e.g. in energy, water and transport), tackling poor health

associated with environmental degradation and introducing efficient technologies that can reduce
costs and increase productivity, while easing environmental pressure. Given the centrality of natural

assets in low-income countries, green growth policies can reduce vulnerability to environmental

risks and increase the livelihood security of the poor.

Sustainability and Green Quality relationship with the GDP:

Green growth strategies also recognize that focusing on GDP as the main measure of economic

progress generally overlooks the contribution of natural assets to wealth, health and well-being.

They therefore need to rely on a broader range of measures of progress, encompassing the quality

and composition of growth, and how this affects people’s wealth and welfare.

The OECD is working to identify the policy mixes and measurement tools that countries in different

situations can adopt to implement green growth in a way that contributes to poverty eradication,

employment opportunities, and a strong and sustainable economy.

Goals of Middle East Countries about sustainability and green quality:

The Kingdom of Saudi Arabia launched in 2021 the Saudi Green Initiative (SGI) is an ambitious

national initiative for the Kingdom of Saudi Arabia that aims to combat climate change, improve

quality of life and protect the planet for future generations.

And Egypt has many Objectives of the National Initiative for Smart Green Projects:

1- Providing an unprecedented initiative at the global level, provided that both implementation

and application take place on the ground

2- Developing a map in the various governorates of the Republic for green and smart projects,

provided that they are linked to various financing bodies, while attracting all the necessary

investments for them, whether from inside or outside the country.

3- Empowering all governorates of Egypt, in addition to reaching various groups, whether

societally or geographically.
 4- One of the main goals is to empower women in the field of “confronting the challenges of

climate change and the environment.”

5- Paying attention to spreading community awareness regarding the challenges of climate

change as well as the capabilities of modern technologies.

There are several struggles that companies often face while managing sustainability. Some

common ones include:

1. Lack of awareness or understanding: Many companies struggle with a lack of awareness

or understanding regarding sustainability practices and their potential benefits. This can make it

difficult for them to effectively navigate the complexities of sustainability management

2. Limited resources: Implementing sustainable practices can require significant financial and

human resources. It can be challenging for companies, especially smaller ones, to allocate resources

towards sustainability initiatives, especially when they compete with other business priorities

3. Resistance to change: Sustainability often requires companies to change their established

processes, operations, and even business models. Some employees and stakeholders may resist

these changes, either due to a fear of the unknown or concerns about the potential impact on

profitability.

[Link] supply chains: Companies with complex supply chains often struggle with ensuring

sustainability across all stages of the supply chain. Identifying and addressing environmental and

social risks throughout the supply chain can be a challenging task, as it requires collaboration and

transparency from multiple stakeholders.

[Link] compliance: Meeting the demands of ever-evolving sustainability regulations and

standards can be challenging for companies. Compliance can require continuous monitoring,

reporting, and adaptation of practices, which may be resource-intensive and ttime-consuming.m

6 Measurement and reporting: Measuring sustainability performance accurately and transparently

can be a significant challenge. Companies need reliable metrics and reporting frameworks to

effectively track their progress, demonstrate their impact, and meet the increasing demands of

transparency from stakeholders.

Overcoming these struggles requires commitment, collaboration, and continuous improvement. It

often involves setting clear sustainability goals, conducting thorough assessments, fostering a

culture of sustainability within the organization, and incorporating sustainability considerations into

decision-making processes.

How can a business become sustainable?

Businesses can be sustainable in several different ways. Reducing waste, preventing pollution,

adopting clean energy, conserving water, using energy efficient materials and adopting sustainable

business travel policies, caring for employees, collaborating with local suppliers and services,

recycling and reuse of products are some of the main actions that should adopt to become

sustainable. A sustainable business should look at the entire life cycle of goods or services and

across the whole supply chain, especially if the source materials come from overseas. Best practices

relate to technologies and innovative policies and projects that are advancing the combined use of

renewable energy and energy efficiency practices. All of those measures speak for themselves.

Even small businesses can easily scale these practices and implement them in their organisations

through a small business sustainability [Link] environmental management systems (EMS) could

be used to manage, evaluate, monitor and report a business's sustainability performance. An

effectively sustainable development strategy requires a top-level commitment. It needs to be in line

with all stakeholders' requirements (e.g. employees, customers, investors, local community, etc.)

and its policies and action plan. It is also vital to ensure finance and all resources that are needed in

the decision-making processes. Decisions made at every level are likely to affect the business's

sustainability performance significantly. Understanding and reflecting stakeholders' concerns can

lead to a more effective business strategy. Employees, environmental regulators and other

organisations can be a beneficial source of ideas and an essential part of executing sustainability

plans. Offering training and incentives to employees can also encourage them to adopt the

business's sustainability strategy. Implementing the elements of focus, motivation, commitment,

support and communication linked to a stewardship orientation is also fundamental to achieving

higher levels of sustainability performance.

Challenges to business sustainability

In the midst of a global pandemic, a global economic crisis, a global climate crisis and a global

movement to end systemic racism, business needs to play a role in building a more inclusive and

sustainable world. However, economic and financial, innovational, social,political, and trade

barriers might pose significant challenges for companies and obstruct them from becoming

sustainable. Some companies, especially the small ones, may experience a lack of resources,

including budget and time. A company without an appropriate sustainability plan can overwhelm

the business. Another possible barrier could be unengaged stakeholders. To effectively manage

those barriers, companies must place sustainability at the heart of their business strategy, set a clear

strategic direction and identify developments that will influence current and future development.

Companies should start with those changes that they can afford and, at the next step, proceed with

the most expensive ones. After the risks and opportunities of sustainable change have been

identified, the next step is implementing a targeted activity focused on energy efficiency, carbon

neutrality, and capitalisation on sustainability. Companies need to convey corporate sustainability

commitment into clear metrics, concrete action and measurable performance. Everyone's input and

support can contribute to a sustainable strategy.

Sustainability and energy efficiency in the energy business Sustainable development is consistent

with and supportive of advancing energy efficiency. Therefore, energy efficiency is a top priority
for energy companies that have sustainability as a key driver in their activities. Sustainable energy

initiative projects include energy efficiency improvements in the corporate sector, agribusiness,

manufacturing and service sectors. increasing the efficiency of energy production and networks.

Energy companies that operate efficiency and sustainability initiatives in tandem improve

productivity, maximise impact, and see a greater return on investment. Indeed, energy efficiency

brings financial returns to stakeholders, creates public benefits in terms of lower greenhouse gas

emissions, increased employment and reduced foreign energy import dependence. Therefore,

energy efficiency addresses six of the SDGs (Goals 8, 9, 11, 13, 16 and 17) due to its strong links

with all dimensions of sustainable development. It is well documented in the literature that energy

efficiency and sustainability significantly

affect firms' profitability (Jaraite and Kažukauskas, 2013; Doumpos et al., 2017). In my research

on the profitability of energy firms participating in the European Union Emissions Trading In 2021,

a Paris-based tech company has seen off competition from the world's best-known green businesses

to be named the most sustainable corporation on the planet according to the Global 100 index.

Ørsted dropped one spot to No. 2 while Schneider Electric rose from 29th spot last year to No.1.

Schneider's purpose is to empower all to make the most of our energy and resources, bridging

progress and sustainability for all. With the global community, Schneider is working to alleviate

poverty, protect the planet, and bring about worldwide peace and prosperity. It also performs

strongly in racial and gender diversity and resource productivity, and safety. Corporate Knight

found that 70% of Schneider's revenue comes from sustainable solutions, with almost three-quarters

of its investment focused on green innovation. Schneider uses the circular economy approach to

achieve climatepositiveimpact as part of the United Nations Sustainable Development Goals. To

help fuel its ambitious sustainability progress, the company relies heavily on digital innovation and

energy efficiency. It reiterates its commitments to accelerate its sustainability efforts while ensuring

no one is left behind. It pledges to become carbon neutral in its operations by offsetting remaining

emissions no later than 2025, delivering more CO2 savings than its carbon footprint, achieving net-
zero operational emissions and engaging with suppliers toward a net-zero supply chain by 2050.

Schneider has also committed to doubling the quantity of recycled plastics in its products by 2025

and banning single-use plastics in its facilities worldwide.

Businesses, not only the energy ones, could take lessons from those companies and implement the

following pillars across their business strategy to become more sustainable:

1. Decarbonise your operations working toward 100% renewable energy. Ørsted dismantled its

fossil fuel business and now focus entirely on renewables. It will completely phase out the use of

coal in 2023 and generate nearly 100 % green energy by 2025.

2. Create CO2 neutrality in the extended supply chain by reducing carbon footprint. For example,

Schneider's Building Management Systems (BMS) sales enabled customers to save 2.7 million tons

of CO2 emissions in 2018 and 2019.

3. Reduce resource consumption, ensuring a resource-efficient supply chain.

4. Apply the circular economy principles across the global value chain, from energy management to

research and development to end-of-life recycling programs. 5. Invest in and develop innovative

solutions that deliver immediate and lasting decarbonisation in line with your carbon pledge.

Schneider installed more than 1,300 decentralised electrification systems and solar microgrids from

2015 to 2019.

6. Design, implement and track successful energy management strategies, including renewables

transactions and energy efficiency improvements.

7. Study the processes through which companies can solve global sustainability challenges in urban

areas, focusing mainly on water conservation, energy management and sustainable mobility.

8. Enhance corporate reputation by cultivating a green-conscious workforce, promoting brand

integrity and engaging with your stakeholder community. Corporate Knight found that 70% of
Schneider's revenue comes from sustainable solutions, and almost three-quarters of its investment is

focused on green innovation.

9. Create equal opportunities by ensuring all employees are uniquely valued and work in an

inclusive environment to develop and contribute their best with their wellness, equity and education

being prioritised. In 2009, Schneider trained more than 246,000 underprivileged people and

supported more than 800 entrepreneurs.

10. Empower local communities by promoting local initiatives and enabling individuals and

partners to make sustainability a reality for all. For example, Schneider will provide 4,650 female

entrepreneurs in Mali, Senegal, and Niger with technical training in renewable energy for the EU's

"Women’s Entrepreneurship in Renewable Energy” project.

11. Comply with laws and do not tolerate any violations of applicable [Link] pillars cited are the

main sustainability strategies implemented by the energy companies examined above. Thus, any

business could follow similar approaches to become more sustainable.

Conclusion

Despite the coronavirus pandemic and the lack of market competition, companies have considerable

pressure to act on climate change and think about sustainability. Indeed, the necessity for

sustainable businesses has never been higher. Sustainable companies are becoming the new norm as

those that have a well-rounded approach to sustainability can see wide-ranging growth

opportunities.

The shift to a sustainable energy system is a long-term undertaking and must embrace all

sustainable development pillars. The practices required for sustainable energy pathways cover

immediate action to improving energy efficiency, reducing fossil fuels, while implementing carbon

capture technologies, investing in renewable and embracing circula

References:

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Doumpos, M., Andriosopoulos, K., Galariotis, E., Makridou, G., Zopounidis, C. (2017).

Corporate failure prediction in the European energy sector: a multicriteria approach and the

effect of country characteristics. Eur. J. Oper. Res. 262 (1), 347–[Link], G., Busch, T.,

Bassen, A. (2015). ESG and financial performance: aggregated evidence

from more than 2000 empirical studies, Journal of Sustainable Finance & Investment, 5:4,

210-233.

Jaraite, J., Kažukauskas, A. (2013). The profitability of electricity generating firms 1077 and

policies promoting renewable energy. Energy Econ. 40, 858–865.

Makridou, G., Andriosopoulos, K., Doumpos, M., and Zopounidis, C. (2016). Measuring the

efficiency of energy-intensive industries across European countries. Energy Policy, 88, 573-

583.

Makridou, G., Doumpos, M., and Galariotis, E. (2019). The financial performance of firms

participating in the EU Emissions Trading Scheme. Energy Policy, 129, 250-259.