Sustainability has become a buzzword in the business realm lately, and for good reason: enduring that your company's actions are good for the environment is a vital part of corporate responsibility. You should want your company to be a positive part of the broader community, and protecting our most valuable resource (the earth) should be a priority. Taking a pro-environmental stance is vital, but it must be backed up with practical actions and thoughtful decisions as well. Unfortunately, being responsible costs time and money, so it's easy to lose sight of why environmentally-friendly policies are essential. Pro-sustainability initiatives often end up on the back burner, even though they are crucial if we want our earth to stay healthy for both our children and for us.
Bottom line: sustainability initiatives are beneficial not only for the planet, but for your business as well. Below are some of the ways that prioritizing sustainability can benefit your organization:
Attracts new customers and increases the number of repeat customers
When someone feels good about buying a product or service, they are more likely to purchase that product again, as they associate that product as reflecting their personal values. Similarly, aligning products with customer values leads to higher demand and improved customer satisfaction. Furthermore, sustainable policies can draw positive press, spreading awareness of your company and growing your customer base.
Strengthens customer loyalty
Building on the above pint, being an environmentally-responsible company can further consolidate your current customer base. Recently, we have seen the new trend of "voting with money." Customers have become increasingly aware of and sensitive to the social and environmental stance of a company. Their knowledge of a company's values often directly informs and affects their decisions about whether or not to support a given company by purchasing goods or services from them.
Increases innovation
New, pro-environment standards lead to new solutions and new ideas. Initiatives to minimize waste and limit your company's carbon footprint encourage efficiency. Furthermore, innovative, environmentally-friendly products have the opportunity to fulfill the emerging public demand for sustainable goods. Similarly, introducing sustainability goals often necessitates the development of new strategies and products that are not only more environmentally-friendly, but also have general improvements, thereby increasing product value.
Improves risk management
Investing in sustainability initiatives helps manage climate change risks by allowing companies to be prepared for possible adverse effects. For example, by investing in solar power, companies can decrease their reliance on fossil fuels. This, therefore, protects them from price increase due to limited stores of oil and natural gas. Furthermore, sustainable policies and efforts help prevent climate change from worsening, mitigating some of the possible business costs. The benefits of being sustainable don't just help the general public; they help protect your company as well.
Enhances financial performance
Sustainable products and policies increase efficiency, resulting in cost reduction. This leads to better profit margins, thereby increasing revenue. This is backed up by several recent studies, which found that improved environmental factors lead to improved operational performance and enhanced stock price performance. Not only is sustainability good for the planet, but it's also good for your company's bottom line.
Now that you know about the numerous benefits of implementing and prioritizing sustainable policies, you will hopefully be ready to take action. After all, it's not just your company that will benefit, but the local community and the planet as a whole. Good business means adding value to the world, and by implementing sustainability initiatives, your company can do its part.