With a growing emphasis on sustainability it is natural to question whether this practice is going to be an onerous tick box exercise that forgoes revenue and profit for the sake of society and planet.
However, you may be surprised to learn that this isn’t always the case and businesses that are integrating sustainability; environmental, social and governance into their growth strategies are often outperforming their competition.
Here are some reasons why:
Sales: Larger companies may already be subject to sustainability standards/practices that would prevent them from collaborating with you. So unless you can prove you have a well defined sustainability strategy and practices in place you may be limited in your revenue earning capacity.
Increasingly, consumers and customers are becoming more environmentally conscious in their decision making with growing numbers opting to buy from businesses that prioritise sustainability. In this respect, a positive reputation for sustainability can also enhance brand loyalty.
Cost savings: Maybe not from the get go but, reviewing sustainable practices often leads to more efficient use of resources, reducing waste and energy consumption resulting in lower operational costs over the long term.
Employee engagement and retention: Employees are choosing to work, and stay, with sustainable companies. A recent study found that businesses with the most satisfied employees have an increased net income margin than those without.
Innovation: Embracing sustainability is naturally innovative in developing offerings to open up to new markets. Investment in sustainable products and technologies can better position you to meet evolving consumer demands.
Access to capital and investment: Some investors and financial institutions will consider your environmental, social and governance performance when making investment decisions. With strong sustainability practices, you may have better access to capital and lower borrowing costs.
Regulatory compliance: Anticipating and meeting future environmental regulations can position you as a responsible corporate citizen, and this foresight can set you one step ahead of the rest.
Supply Chain resilience: Increased scrutiny of sustainability within your business can reduce the long term risks associated with resource scarcity, climate change impacts and other environmental factors.
So it seems that businesses can create a positive impact on the world, while safeguarding their own future. What do you think?
Tori Burns