How Embracing Sustainability can Improve your Business
From the time of the industrial revolution in the 18th century, businesses have been a major part of our society creating innovative solutions and advancing the standard of living of modern society. On the other hand, business activities have contributed significantly to the global greenhouse gas emissions leading to climate change which is a major challenge of our world today.
The Guardian reported a study that shows 71% of the global greenhouse gas was emitted by 100 Companies. Every stage of a business life cycle from extraction to production and disposal has a great impact on the natural environment and this is why businesses should be an integral part of climate solutions.
Business sustainability is the practice of operating a business without harming the environment. Business sustainability goes beyond just caring for the environment, it also maintains a healthy community while making profits. Thus, business sustainability ensures a win for the business owners, the people, and the planet.
Reasons businesses should embrace sustainability
Cost-saving
The major factor that discourages business owners from embracing sustainability is the issue of profit. Sustainability thinking is usually long-term thinking, while the long-term thinking for a business might be around four to five years, planning for sustainability will require many more years.
There is too much focus on short-term results in business today. Investors in the capital markets are driven by quarterly earnings, and this puts tremendous pressure on CEOs, especially those who run publicly-traded companies, to develop short-term strategies to return quarterly profits at the expense of sustainable solutions that are in the long-term interest of all stakeholders.” Mark Lefko
Incorporating sustainability strategies usually involve a huge investment which usually saves money in the long run. Switching to more efficient measures that reduce energy, water, materials use will result in bottom-line savings in operations, packaging, and waste management.
Risk mitigation
The major lesson from the Covid19 pandemic for business owners is the concept of risk mitigation and management. Economies around the world were bedeviled by the global shortage of a vast range of goods which led to the crumbling of some businesses. To ensure resiliency in business, there is a great need for the understanding of risk mitigation.
A high material-consuming business model is more vulnerable to market irregularities and unforeseen events such as sudden price changes, supply shocks, unfavorable policies, unexpected events such as fire among others. Sustainability offers a better path to efficient use of resources that will reduce your business's vulnerability to these externalities.
Improve company brand
Kristopher Jones, Forbes Council member defines branding as the entire identity of a business. The business world today is characterized by a high level of intense competition and this makes branding a very important part of a business.
A sustainable brand shows that a business is looking beyond making profits but also integrating environmental and social issues into its business operations. Today’s customers/clients want to be associated with companies that have sustainability as a goal and companies with green values are eager to showcase their works because of that.
Another important concept to note under branding is the social license to operate. A social license to operate is the support for a project from concerned groups or stakeholders over and above meeting any legal requirement. The concept of social license to operate has now moved beyond the extractive industry to other types of industries. Incorporating sustainability strategies in your business will make your business more appealing to concerned groups.
See the world’s most reputable companies and what they are doing in the aspect of sustainability.
Retain talented employees
Sustainability can also help companies attract and retain talented employees which will increase overall productivity. According to Mckinsey & Company report, quality employees are 400 percent more productive than average employees. Millennials are fast making up the largest workforce and they usually have high expectations.
A company that has a bad reputation for poor treatment of workers, non-compliance to environmental rules or laws will not attract the best of talent. People want to be proud of where they work.
Employees just like consumers want to be associated with companies with missions and goals that they can resonate with. They want to be able to have a feel of working for a company that is doing something to make the world better. According to a survey carried out by Fast Company, millennials are likely to choose a company that has strong sustainability commitments.
Opportunities for Growth
As business leaders have begun to view sustainability as a more integral component of their business, they are now identifying new opportunities for innovations in this path.
Businesses are now becoming more creative and innovative with their products coming up with new designs that use less amount of resources, redesigning existing products, replacing harmful materials in the product design. These kinds of creativity and innovations are going to lead to massive business growth.
Deciding to incorporate sustainability in your business strategies, designs and operations is a great step toward ensuring the continuity of your business.
