Originally published November 13, 2022 , updated on January 17, 2023

As the world becomes increasingly aware of the need for sustainable practices, organisations are under pressure to do their part. While some may see this as a burden, others see it as an opportunity to improve and optimise. Adopting a sustainable strategy in business can lead to reduced expenses, increased efficiency, and improved employee morale. But, the shift to sustainable practices starts with management.

Business leaders set the tone for their company and have the power to make changes with a lasting impact. Because managers call the shots, it’s up to them to pioneer a path toward a more sustainable future. 

Since climate change is one of the world’s most pressing problems, business owners today have a moral imperative to combat the issue. By adopting sustainable practices at all levels of their companies, they create an opportunity to positively affect the environment. But it’s not just beneficial for the planet—it has benefits for business, too. According to a Mckinsey survey, companies that incorporate sustainability agendas into their business strategies have a better chance of generating greater value while increasing cost savings. Furthermore, the survey states that forty percent of respondents foresee company sustainability initiatives to increase value generation over the next five years. 

Sustainability isn’t a modern-day luxury or trend; it’s a necessity. And it’s an aspect of operating that every business should be thinking about. This article unearths some of the many benefits of incorporating a sustainability strategy in business. 

Importance of Sustainability Strategy in the Business World Today

Sustainability has many definitions, but the most accurate definition, quoted by Science Direct, is probably “the endurance of systems and processes.” In other words, it’s the capability of a system to maintain itself over time.

For many businesses, sustainability is about creating value for their target market while positively impacting society and the environment. The Mckinsey survey showcases that value creators are more likely to engage their desired audience with sustainability attributes. In doing so, these companies can create a seemingly self-sustaining loop that builds and maintains a loyal customer base. 

Society is more conscious of the environment than ever. Therefore, consumers are looking to do business with companies that share their values. In response, businesses have had to adapt their practices to be more sustainable. They also protect the environment, their employees, and their customers. A recent survey conducted by Deloitte shows that between 2020 and 2021, 40% of respondents state to purchase goods from brands that harbour distinct sustainability practices, and the number is only expected to grow. More consumers are making conscious and mindful decisions about their behaviour and habits, choosing to support brands that prioritise environmentally sustainable practices and ditching those that don’t. 

Sustainability for business can take many forms, including implementing policies and procedures that minimise waste, reduce energy consumption, and promote recycling. For some businesses, it also means ensuring products are made from sustainable materials. 

Deloitte’s survey shows that an increased amount of businesses are becoming more sustainable and attractive to consumers looking to make responsible choices.

The Business Benefits of Embracing Sustainability 

There are many ways for businesses to become more sustainable. They can reduce waste, use less energy, and create products that last longer. All it takes is a simple yet effective sustainability strategy in business and a few tweaks in the workspace to experience the myriad benefits. 

Reduces Costs

Sustainability reduces costs and affects operating profits by up to 60%, according to McKinsey & Company. While the initial investment might be higher than traditional methods, sustainable practices can save money in the long run. For example, a company can save on disposal costs and reduce its water bill. 

Solar energy is one of the most popular alternative energy resources available to businesses today. In addition to reducing operating costs, solar energy can also help businesses garner profits by selling energy back to the grid, further reducing the expenses associated with manufacturing goods and services. 

Increases Productivity 

It’s no secret that employees who work at sustainable businesses are generally happier and more satisfied. But, in case you need proof, a recent report conducted by GetSmarter shows that 56% of employees are more satisfied when working at companies that prioritise sustainability. After all, sustainable businesses typically place emphasis on things like employee well-being and work/life balance. And when employees are content and more satisfied, they tend to be more proactive at work. It eventually leads to increased productivity and, in turn, profitability for the business. 

What’s more, sustainable businesses often have a positive impact on the communities in which they operate. This can help to boost employee morale even further, as people generally appreciate working for organisations that give back to society.

Sustainability Strategy in Business Elevates Reputation

More people are embracing sustainable lifestyles, and they’re pushing businesses to do the same. A GetSmarter report states that up to 73% of consumers are shifting to a more sustainable approach to consumerism. 

Companies that enhance their approach to sustainability are more likely to be respected by the community. A business’s reputation will increase if people know it practices sustainability.

Furthermore, the GetSmarter report shows that consumers are buying more from companies that have embraced sustainability as they want to support businesses that share their values. And as consumer demand grows, it will only become more important for businesses to do so.

Attracts Prospects and Investors

Sustainable businesses often enjoy a boost in public relations and customer loyalty. As more and more consumers become concerned about environmental issues, they are increasingly likely to refer businesses that take steps to reduce their impact on the planet.

Partnering up with a company that prioritises sustainability is a powerful move. It impacts reputation, consumer trust, and the environment as a whole. Businesses known for their participation in governing sustainability generally attract more investors, helping them build larger clientele and generate greater profits. 

A sustainable business meets the needs of the present generation while safeguarding the world for future generations, one where they can meet their own needs. Sustainable businesses are usually more profitable, have happier and more fulfilled employees, and garner a larger, more loyal customer base. 

The key to creating a sustainable business is to focus on the triple bottom line: people, planet, and profit. Businesses must consider their activities’ social and environmental impact and their financial bottom line. Creating a sustainable business is not only the right thing: it’s also good for business.

Goodman Lantern is now offering sustainability persuasive writing services that provide companies with the means to articulate & communicate their sustainability strategies. Contact us today if you’d like to learn more or get involved.

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