In this day and age, sustainability has become one of the most important factors in society, politics, business, and everything in between. Here are a few of the massive benefits your business could encounter when you take the steps to becoming more sustainable.
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Sustainability = Business Value
Whether you make and sell eco-friendly packaging, cosmetics, car parts, or anything in between, becoming more sustainable adds to the value of your business. Many studies performed by banks, such as Deutsche Bank, and corporations across the globe have shown that sustainability equals higher returns.
This means that not only are you make a difference in the environment, but the market is also responding to your efforts, and rewarding you for them
Meet Your Customer Needs
The customer base, and their needs, are also changing, with the vast majority of them now preferring eco-friendly brands and products. Not only do they opt for these products or services more often, they also want their current favorite brands to become more eco-friendly.
According to some research in the US, over 70% of consumers expected businesses to take steps to become more environmentally-friendly, with 73% of consumers stating they would stop purchasing from a brand or business if these eco-friendly steps weren’t taken.
Attracts Top Talent
One interesting factor that has arisen over the past few years is the connection between sustainability and drawing in top talent. Younger generations are now paying more attention to a company’s sustainability policies, and using that as a decider when it comes to applying for a job.
This has now created an environment where more and more young professionals are applying for jobs that resonate with their own eco-friendly beliefs, and non-sustainable businesses are missing out on the next generation of talent.
This will also lead to an increase in competition, and an increase in other businesses having to take the steps to becoming more eco-friendly. If they don’t, they risk missing out on a large percentage of the next generation of employees.
Reduced Costs
One of the biggest benefits of becoming more sustainable is that it will increase your bottom line. While initial changes can be expensive, over the long-term, eco-friendly businesses save, and therefore make, more money thanks to eco-friendly changes and improved efficiency.
On the small scale, something as simple as changing your lightbulbs to power-saving lightbulbs can cut your electrical costs and fixing any leaks or drips can save on your water bill.
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Operational Efficiency
Operational efficiency as been alluded to before, but it is a very important reason to become more sustainable. In simple terms, sustainability improves operations by cutting down on unnecessary steps or cutting out aspects that are damaging to the environment.
For instance, in the supply chain, researching new routes and cutting down on travel times for your vehicles not only makes your supply chain faster and more efficient, but your vehicles spend less time on the roads, and therefore put less damaging gases into the air.
Reputation
The reputation of your company is also directly tied to its sustainability practices. We have all seen how something like an oil spill or burning too many harmful gases can put a long-lasting stain on massive companies.
As previously mentioned, your customers also connect to you and your brand better when your sustainability practices match their beliefs. In short, a sustainable, eco-friendly business is held in much higher regard compared to those that aren’t.
Growing Market
The market for more sustainable goods and services has also grown exponentially over the past few years. A study done in 2019 showed that over 70% of consumers were willing to change swap brands, and even spend more, if the product they were buying was eco-friendly.
A company like Lush, for example, has grown in popularity thanks to its scheme of allowing consumers to return empty bottles or tubs for cheaper refills.
Tax Advantages
On the business side of things, depending on where you live, there are plenty of tax advantages that you could benefit from simply by becoming more green. In the US, for example, there are several state and federal initiatives in place that reward businesses for becoming more eco-friendly.
For example, a government may give you a tax credit when purchasing electric vehicles to offset the cost of them, while others may give you a tax cut for building an energy-efficient warehouse or something similar. These change from country to country, but many will give you some sort of incentive to go more green.
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Reduces Compliance Risk
Compliance is another factor that every manufacture has to juggle on a day-to-day basis. However, being more eco-friendly allows you to cut out a lot of risks often associated with compliance.
For example, having a better waste management system allows you to effectively deal with waste in a way that not only makes you compliant, but is also better for the environment.
Overall Change
Finally, becoming more sustainable makes you an important cog in the machine that will drive overall change. With the current state of the environment, massive change is needed at a rate we haven’t experienced before.
Whether you are a small business or a large multinational, making the change to being eco-friendly doesn’t only benefit you, but forces other businesses to change with the times as well.
