How a Company’s Sustainability Goals Impact Location Decisions - Creative Economic Development Consulting

By Evan Day, Intern, Creative Economic Development Consulting, Ashely Cagle, Assistant Executive Director, Wake County Economic Development, and Penny Whiteheart, Senior Consultant, Creative Economic Development Consulting. This article is a collaboration between Creative EDC and the NCEDA Research Committee.

As companies re-evaluate their performance measures and bottom line, they have included more qualitative goals, such as sustainability, for their facilities and operations. Since the definition and results of sustainability vary across industry sectors, company size ,and geographic location, economic developers and local governments are wise to understand the sustainability values of their major employers, taxpayers, and prospects. To gain insights into what large manufacturers are looking for in sustainability initiatives, we spoke with David Knight, formerly with John Deere in North Carolina.

During David’s career at John Deere, he helped to implement a number of sustainability efforts at his facility. Sustainability is a major priority there not only because of environmental impacts at the plant, but also the impacts along the entire supply chain. Knight explains that a key priority in sustainability for manufacturers is the shift to renewable energy sources such as solar or wind. “Net zero” emissions is another common goal for companies measuring their environmental impact. Knight also highlighted the seventh-generation principle: that the measures we implement today should result in a sustainable world seven generations from now. This also emphasizes the long horizon that some global companies adopt when they look at their own sustainability programs.

Since economic development programs reflect the needs of local businesses, many agencies are considering sustainability measures of their own as well as how local governments can support businesses in their sustainability efforts. Ashley Cagle, Assistant Executive Director of Wake County Economic Development (WCED), recently discussed the importance of sustainability programs at a meeting of North Carolina economic developers. In addition to the environmental importance of sustainability, sustainability has become an important part of business attraction. When FUJI FILM Diosynth Biotechnologies (FFDB) decided to locate in Holly Springs, North Carolina, a major factor in their decision was how capable the community (Town of Holly Springs, Wake County, and State) would be in helping FFDB achieve their ambitious sustainability goals. A sustainability plan was created to show FFDB how the community could not only match pace with the company, but in several areas such as energy diversification, water use, and land use, a location in Holly Springs would take their goals further, faster. The sustainability plan gave assurance to the company that their values would be supported. One of the first outcomes of the plan was the creation of WCED’s Business Sustainability Roundtable (BSR) in partnership with North Carolina State University. The BSR began with a small group of the community’s most advanced sustainability practitioners including David Knight from John Deere, and a founding member seat was offered to FFDB as an incentive to locate in Wake County. In 2023, Wake County Economic Development hosted its first ever sustainability conference with over 300 attendees.

While these examples are from larger corporations and communities, there are many opportunities for smaller cities and counties to begin sustainability discussions with local businesses. Read on for some examples of ways communities can get started and support business sustainability initiatives.

To implement sustainability measures in a community, local governments can consider some of the following strategies:

Sustainability Assessments: Offer businesses in key industrial areas a free sustainability analysis to identify areas for improvement in energy efficiency, waste reduction, water conservation, and more.
Financial Incentives: Establish reimbursement and loan funds to support businesses in financing sustainability improvements, encouraging them to adopt greener practices.
Tracking and Reporting: Implement tracking systems to monitor greenhouse gas emissions and progress in sustainability efforts. This allows businesses to measure their impact and ensure they stay on track toward environmental goals.
Education and Training: Conduct workshops and training sessions for businesses and residents to promote sustainable practices and behavioral changes that lead to a greener community.
Certifications: Recognize and celebrate businesses that actively implement sustainable actions through certifications and logos. This can create a positive reputation for the community and attract like-minded businesses and customers.
State Resources/DEQ: State plans, such as the NC Clean Energy Plan, and state agency staff are good resources.
Energy Providers: Have Duke Energy, ElectriCities, NCEMCs, Dominion, etc. attend existing business events (or create one) to discuss their clean energy plans and possible funding (e.g., grants for LNG).

By integrating sustainability measures into local government strategies, communities can reap both environmental and economic benefits. A sustainable approach not only conserves natural resources but also attracts businesses and residents who prioritize responsible practices. Embracing sustainability is a pathway to a brighter future—a future that balances economic growth with environmental stewardship.