Business sustainability means running a business without bringing potential harm to the environment, economy, and society, and this approach to running operations has to be set to work for the long term. To be a sustainable business is not just an opportunity that you can pass on anymore; rather, it’s an approach that has the power to make or break your company.
Why is sustainability in business so important? Its majority for two reasons-
- According to McKinsey, efficiency improvements, AKA being sustainable, can increase operational profitability by as much as 60%.
- A sustainable business plays a huge role in reducing carbon footprint, ensuring human rights, and corroborating positive societal impacts
Being sustainable is the only way to ensure that you as a business are heading in the right direction. This approach to running operations not only saves you money but as a result of adopting positive changes also paves the way for a new era to come through where businesses are no longer the leading GHG emitters.
Business Sustainability Ensures Growth
In the 21st century going green for businesses is essential. One of the main ways your business affects the environment negatively is by consuming a lot of energy that comes from a non-renewable source. Apart from paying insanely huge bills for a coal-run source of power, this hurts your reputation too. What your business does to help protect the earth, and its people is what sets the tone for your brand.
Adapting to renewable energy sources greatly cuts business expenses and helps ensure business sustainability. Indeed, paying to achieve power independence by investing in solar panels, wind power, or any other renewable source might feel like an expense. Still, it pays off tenfold in terms of ROI.
When you invest in renewable energy (solar panels), you get to –
- Save up to 75% on energy expensesÂ
- Achieve energy independence requiring little to no maintenance for years
- Enjoy government incentives for choosing to go green
Because Your Customers are Educated
As a business owner, it is of utmost priority to keep your customer’s happy. Along with providing the best possible goods and services, what more value you can add to the community also matters.
For the newer generations of millennials and Gen-Zs, to commit to any business, it takes more than good products and services. Community building is a new and demanding approach for any business, and to do so, keeping the community’s future top of mind is important.
A business that takes steps to become sustainable attracts a wave of aware customers. Studies show that the majority of customers are willing to pay a 10% premium for food packed using ecologically friendly materials – (source).
In essence, COVID-19 has inspired customers to actively seek out commodities that are ethical, pay greater attention to their health and the environment, and work with companies that provide long-term sustainable business solutions.
Attract Talent That Fosters Innovation
What scales up a business beyond imagination? The people that run it. Innovative and talented minds care about their contribution and input. Talented minds are enticed by a company culture that cultivates a team approach, fairness, and a positive societal impact. Building a sustainable business is very important if you want to attract and retain prodigies in your team.
Additionally, creating a purpose-driven plan provides your team members with a reason to work hard, which increases engagement, team morale, and productivity. For instance, according to 89% of CEOs, employee happiness will be higher in a company with a collective goal that has a big picture with a positive societal impact.
Build Unmatched Brand Value and Gain a Competitive Advantage
When you build a business that cares about how its actions can impact people’s lives and the planet’s future, people, AKA your customers, reciprocate. A sustainable business cares about being eco-friendly, humane, innovative, socially responsible, and fair. Being sustainable can set your business apart from competitors.
Human civilization is approaching the threat of severe climate change. It is more apparent now than ever with frequent natural disasters. So, it’s natural for more people to be aware of the situation, and this has caused a revelation in how people approach businesses. In order to build brand value, pay close attention to these details and adapt to sustainable ways.
Be The Changemaker – A Sustainable Future
It’s all about the big picture. Apart from all that your business can gain, which is plenty from being a sustainable one, think about what legacy you will leave behind. To protect our planet, every small step we take towards sustainability and greener changes matters. Make investment decisions that can revamp your business into a sustainable one. Be the changemaker.
The bottom line is sustainable business practices not only pave the way for your business opportunities to grow immensely but also help the community. These are the exact reasons why sustainability in business is important.
