Buttressing the idea that sustainability is rapidly becoming a "prerequisite" for profitable growth are such indicators as a recent study showing that at least two-thirds of 25,000 consumers in the US, Canada and Western Europe form impressions based partly on a company's ethics, environmental impact and social responsibility. Yet, ironically, many consumers are unwilling to pay more for sustainable products.

Bain's experience in guiding clients in this increasingly important strategic area, shows that the first step for companies is to prioritize their sustainability issues - which are not necessarily the issues gaining headlines in any given week. Sustainability issues need to be evaluated through multiple lenses, including the implications of new regulations on your business, the cost (or savings) of addressing the issue, the impact on customer demand for your products or services, and how it affects your ability to recruit and retain employees.

The second rule for managing sustainability is that any moves must make strategic sense and be backed up by sound business cases. In other words, by integrating sustainability decisions with traditional analysis, companies can figure out how to gain a competitive advantage over the long term. Wal-Mart, for instance, expects its package-reduction initiative will keep nearly 213,000 trucks off the road in coming years and save the retailer some $3.4 billion.

Many consumer-based companies around the world are incorporating sustainability practices throughout their business practices. In the process, they are transforming their products' design and assortment, their supply chains, their operational footprints and their messaging to consumers, investors, and employees.

Bain's expertise in sustainability strategy has been honed in hundreds of engagements over the years and across a variety of industries. Among others: We have developed a full-potential renewable energy policy for a European energy and utilities company. We have analyzed the metal recycling market for a global mining company, identifying the impact of trends and new regulations. We have evaluated business opportunities for a bio-fuel company. And, Bain's viewpoint on "Growth Through Sustainability" was presented at the 2008 World Economic Forum.

To find out more about Bain's work in this capability area, please contact the Strategy practice.