Read the article (PDF), published in the December issue of Ethical Corporation magazine.

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The study confirmed many of my suspicions about the correlation between organizational structure and external recognition of sustainability performance – I agree with the authors that more work is needed.  Beyond the question of where leadership for sustainability resides in an organization, I would be curious about how various departments in the horizontal structure collaborate to make sustainable practices happen.

From the perspective of today’s economic climate, it’s a shrewd move. UTC is telling investors that sustainability is here to stay as a core element of the company’s business strategy—and showing them how the environmental characteristics of its products is helping to maintain sales. UTC is likewise demonstrating to stakeholders that environmental and social issues are being considered on a daily basis throughout the company’s operations with attendant emphasis on accountability for sustainability performance.

Both the integrated approach and the report theme of “More with Less” is right in line with current public sentiment. A Harris poll conducted in late January finds that 51 percent of Americans say that environmental and economic goals can be aligned (without trading off one for the other). At the same time, efficiency and cost-cutting are again being viewed as a hallmark of both personal and corporate responsibility.

UTC’s choice to combine reports is but another sign of how sustainability is becoming an indispensable management tool—and source of competitive advantage. When companies strip away the hype and start providing sustainability metrics as part of their financial narratives… now we’re really getting somewhere.