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A sustainable company serves consumers, without jeopardising the ability of future generations to meet their needs. In discussions about business sustainability, three pillars are generally mentioned, economic, environmental, and social. They’re also known as profit, planet, and people.
Sustainability can also help your business, by making you more attractive to workers, increasing staff satisfaction, boosting profitability, future-proofing your organisation against legislative changes, and more.
So, it’s no surprise that more and more businesses are factoring sustainability into their corporate strategy and supply chains.
Keep reading to learn the benefits of greener business.
1. Be more attractive to workers
People are becoming increasingly conscious of issues like sustainability. They prefer companies that align with their ideals, when choosing where to work. So, being a greener company can help you stand out and attract top talent.
Another benefit of increased sustainability is greater staff satisfaction and productivity. When employees work for organisations that match their values, they feel like they belong which reduces loneliness and increases productivity. Almost half of staff, in Deloitte’s 2020 Global Human Capital Trends survey, said that working for an organisation with similar values contributed the most to feelings of belonging.
Shared values are also crucial to the development of a strong company identity, which increases resilience, and performance during periods of instability. They provide a sense of purpose which transcends work. Staff are doing more than earning a living, they’re making the world a better place.
Your workers must value sustainability and you need make a genuine commitment to go green. Creating shared values, empowering your workers to make a difference, and incorporating sustainability throughout your processes is key, to be more attractive to workers and to boost staff satisfaction.
2. Get more custom
Consumers care more about sustainability than ever before, so it’s no surprise that going green can give you a competitive edge.
62% of consumers want companies to make a stand on issues like sustainability, according to Accenture Strategy’s 14th Global Consumer Pulse Research survey. Similarly, a 2021 Deloitte survey found that sustainability and ethical issues are a key driver for 32% of consumers.
Shoppers are 4x more likely to purchase from value-driven companies and 4.5x more likely to recommend them to their family and friends, according to the 2020 Zeno Strength of Purpose Study. Likewise, 28% stated that they have stopped buying from brands due to ethical and sustainability concerns. So, it pays to go green and get it right.
Younger consumers are especially passionate about sustainability, with Gen Z adopting more sustainable behaviours than any other group.
Being more sustainable can help you to get ahead of the curve, tap into new markets, outperform your competitors, and appeal to the next generation of consumers.
3. Increase profits
In the long term, going greener can increase your profitability. Adopting sustainable business practices can reduce costs and increase profits by up to 60%, according to McKinsey.
Going green almost always comes with an upfront cost. However, reusing materials and reducing waste can increase profitability further down the line by boosting efficiency. Especially seen as resources like water and fossil fuels are likely to become more expensive.
Plus, most consumers are willing to pay 5% more for a sustainable product, providing it's just as good as non-green alternatives. Meaning that if you get your numbers right then your business can be both greener and more profitable.
4. Ensure compliance
The pressure to go green and the associated regulations are increasing. Sooner or later, every business, irrespective of size and industry, must become more sustainable.
Companies that fail are unlikely to get government contracts and are less likely to receive both custom and investment.
In 2021, the UK government laid out a roadmap for creating a greener economy. One of the key components of its roadmap is the Sustainability and Disclosure Requirements (SDR), meaning that certain organisations and businesses must report on sustainability actions and metrics.
The UK government are also looking to take it up a notch with a UK Green Taxonomy, listing environmentally sustainable economic activities. It can be used by companies, investors, and policy makers to finance sustainable projects and mobilise funds from the private sector.
These regulations ensure alignment and accountability empowering both investors and consumers to make informed decisions by increasing transparency.
The government is also working on standards and regulations, that will require investors to factor SDR reports into their decision making.
Simply put, failing to go green is likely to cost your company investment. There’s also the risk of financial penalties if you fail to meet regulations. Plus, working to become a more business sustainable now will futureproof your organisation against up-and-coming legislative changes.
We can help
Embracing sustainability, will benefit your business further down the line. In the medium term, you’re likely to become more attractive to candidates and see an increase in staff satisfaction, productivity, and performance.
After the initial cost of implementing sustainability measures, reduced waste and improved efficiency will cut costs and elevate your bottom-line. You’ll also be more attractive to consumers, and be able to charge more for your products, increasing profitability.
Plus, putting in effort to meet sustainability and disclosure regulations will allow you qualify for government contracts, access finance, and avoid penalties.
The benefits of greener business are clear, but how do you do it? To help you get started, futureproof your business, and meet requirements, we created accountabl.
Accountabl is an expense management system, which saves you money on expenses with complete visibility and built-in spend controls, while tracking the carbon footprint of purchases. So, you can cut costs, while monitoring your business scope 3 emissions and empower your workers to make greener decisions.
Try accountabl for 30 days free
