March 7, 2008 - Despite a recent dip in Marks & Spencer's sales and stock performance, CEO Sir Stuart Rose is taking the long view on Plan A, the British retailer's ambitious five-year sustainability program. Writing in the Harvard Business Review, Rose points to long-term costs savings and significant brand benefit as key reasons why cutting back on the program would be "a commercial mistake."

First, Rose asserts that Plan A is far from the "fluffy stuff" companies ax as soon as the going gets rough:

"There are compelling commercial - as well as moral - reasons to [stick with Plan A]. Take the early results it's generating. Our 'Wash at 30' campaign, which encourages consumers to wash their clothing at a lower temperature than used to be considered the norm, has saved an estimated 25,000 tons of carbon dioxide. We have reduced C02 emissions by an additional 55,000 tons by switching 23% of electricity to renewable resources. Toward our goal of zero waste to landfill, 75% of the construction waste from our store refurbishment program is now recycled."

Rather than focus on detailed cost-benefit analysis of Plan A, estimated to cost a total of 200 million pounds, the company has instead taken steps to ensure that individual initiatives under the program make financial sense. Environmental efforts such as recycling clothes hangers and reducing product packaging are saving the company millions of pounds and cutting energy use (and therefore costs), according to Rose.

Finally, Rose cites the brand benefits Marks & Spencer is enjoying thanks to its green reputation. Three of four U.K. shoppers report an interest in environmental issues, according to the company's own consumer data, and an independent study shows that more than half are willing to pay a premium for shopping at an environmentally responsible retailers like Marks & Spencer.

"Responsible business is good business, provided we don't get too far ahead of our customers," Rose concludes. "I think half a step is about right: Any more and you can't sell to them; any less and you lose the lead."

To hear Sir Stuart Rose discuss the early results from Plan A, click here.