Sustainability has become more than just a buzzword in recent years. Research shows that sustainability has real benefits for business.
Here are the top reasons why sustainability determines the success of a business and why it becomes more critical every year.
A Profitable Bottom-line
There are several ways through which sustainability efforts reduce costs and lead to higher productivity. Simply replacing obsolete machines and installing energy-efficient light bulbs can save businesses millions of pounds annually, and some of the biggest brands in the world have found that a renewable investment gives them an advantage in product innovation and brand image.
There are also a few other profitable incentives, such as environmental tax incentives, income tax credits and property tax cuts, which are provided by the government to businesses to get them interested in sustainability programmes.
Ability to Comply with Regulations
It’s no longer news that government agencies all over the world are enacting regulations to protect the environment. Climate change, diminishing energy resources, and environmental impact stress the importance of the move by world governments toward supporting sustainability practices.
Incorporating sustainability efforts in your company policy will put your business in the right position to meet evolving regulations and to be fully compliant, a move that will attract partnerships from all the right sources.
Sustainability Means Access to New Markets
The business and financial world is actively looking for sustainable enterprises to invest in and gain new partnerships partner.
One index that shows the sustainability level of your business is the Dow-Jones Sustainability Index. Investors and other programmes might study your sustainability levels by using such an index to determine if you are a good fit.
Even financial institutions might support you as there are soft loan programmes designed for environmentally friendly businesses to give their current account the needed investment for production and facility expansion.
If you want to work with the best clients, the best companies, the best vendors, or if you wish to get public financing, then you need to have a sustainability plan or, at least, some practices in place.
Sustainability Attracts Customers
Customers know the value of their money and are willing to use it for causes they care about. Now that everyone is interested in a sustainable environment, people don’t just take a product off the shelf. They deliberately look for products or businesses that align with their personal interests, meaning that you stand a good chance of being the market leader if you cultivate sustainable policies.
Sustainability policies will improve your company’s reputation and the products and services that you deliver. Most individual consumers prefer to buy from responsible companies, while business customers may select sustainable suppliers as part of their dedication to sustainability.
Additionally, a good reputation will help you to attract and retain staff, and improve your credibility among your local community. A sustainable approach can also make it easier to attract investors and collaborate with regulators by reducing the risks in your company and demonstrating that it is well run.
Sustainable business practices can lower your costs, provide you with competitive advantages as well as growth opportunities, reduce risks and effectively drive more revenue.
So, it’s a smart business approach which makes it essential for your business to catch up.