When it comes to sustainability, a lot of people and firms are often left scratching their heads. What does it mean to be sustainable? Does it definitively help the business? If so, what are the benefits? In simple terms, as a firm, how does becoming sustainable affect our bottom line?
Some years back, sustainability was a hot concept. The business didn’t know what it was or how to start looking into it. But then, something happened. The economy took a nosedive. Employees were laid off, and facilities mothballed. Only the most crucial activities were given any financial backing.
The truth is, most businesses still hold onto this mindset. The businesses in the country are running leaner and more cautious than ever. With a strong emphasis on management, these firms will only spend money when it makes sense.
Here are the primary benefits of leading a sustainable organization.
1. Brand Image and Competitive Advantage
Do you know that being sustainable improves your business image? Yes. The today’s customer is well aware of different environmental concerns. Plus, they are likely to buy from a firm that’s known to practice sustainability. With this, you get a competitive advantage.
But that’s not all! A study by Natural Marketing Institute shows that over 50 percent of consumers admit that a company’s environmental practice influences their purchasing decision.
No wonder big firms like Honda are valued for optimizing fuel efficiency. Colgate ran a public awareness campaign on water conservation during the Super Bowl.
And yes, spreading awareness and sustainability do not only build a better brand image but also penetrates at a deeper level to the employees.
2. Helps Business Comply with Regulations
Currently, business discussions revolve around climate change, dwindling energy resources, and environmental impact. With this, governments across the globe are enacting laws and regulations to protect and preserve the environment.
Integrating sustainability in your business operations helps you to comply with these regulations.
3. Boosts Production While Reducing Costs
The way your business handles resources like water, and energy affects your overhead costs. For instance, if you replace your basic lighting with energy-saving lighting makes a great difference to your power bills. Likewise, getting your dripping taps or faucets fixed saves a lot of water. Remember, a dripping tap can waste nearly 10, 000 liters of water a year.
Bigger corporates may go the extra mile and install a geothermal and cooling system in their offices. Yes, the investment may seem expensive, but it’ll be worth it in the long run.
4. Improves Employee Retention
Employees want to work with reputable firms that support and operate corporate environmental programs. No one wants to work for companies involved in community welfare scandals and ecological disasters.
According to a recent study by Adecco, over 50 percent of employees want their organizations to do ‘GOOD’ for the environment and the surrounding communities. In short, they want to stay with a company that cares.
For instance, Bank of America has set a great example in this context by subsidizingtheir worker’s solar panel installations at home. But that’s not all, the company is also offering an incentive when its employees want to buy an eco-friendly vehicle.
5. Helps Your Business Attract Investors
Do you want to attract investors to your firm? Become sustainable. According to financial and investment experts, having a sustainability plan increases the business chances of attracting investors than those who don’t.
A 2007 study by Goldman Sachs concluded that firms with a social and environmental policies track record have surpassed the general stock market by 25 percent. 72 percent of these companies are already of their competitors.
So, do you understand how becoming sustainable can support your business? It will not only add business value but also encourage potential customers to choose you. however, becoming a sustainable firm should be a norm, duty, and a responsibility rather than a burden or a forced rule.
And yes, becoming sustainable is not that difficult. It starts with small and simple steps like saving water, electricity, planting a tree, and educating employees about the environment.
Article Submitted By Community Writer