The Benefits of Becoming a Sustainable Business

Did you know: 83% of consumers surveyed agree that a brand's sustainability is important to them (IBM Survey, Oct 2020). Sustainability is a word that has been doing more than just trending – it's impacting the way we view brands and ourselves.

Sustainability has been a critical area of growth from some of the largest companies, including Nike, Unilever, and Lego. Still, the UN has stated that only 46% of private businesses surveyed are looking to implement Sustainable Development Goals (SDGs) into their business model. The question remains: what do some of these larger brands understand about sustainability that others haven't grasped yet?

This article will look at what it means to be a "sustainable business" and why sustainable businesses enjoy many additional benefits.

What is a sustainable business?

A sustainable business is one whose actions have minimal impact on the environment. Since all organizations accrue some environmental impact, the minimization of impact is a conscious decision implemented by the business as part of a strategic initiative.

The Top 3 Business Benefits of Sustainability

1) You connect with your customers

92% of consumers are more likely to trust a company that supports social or environmental issues (Cone Communications, 2017).

Consumers connect with brands that value the same things they do. Showing your company's support for reducing climate change reveals those in the organization's values, adding an element of humanity to your brand.

Studies show that the younger generation is the most responsive to CSR (corporate social responsibility) initiatives – with 37% percent of American Generation Z consumers report that they are willing to pay a premium for environmentally sustainable products (Statistica report, November 2020).

2) You increase employee engagement

75% of the Millennial Generation want to work for a company that "cares about how it impacts and contributes to society" (Surveys by Cone INC).

With more companies embracing a purpose-led business model, ensuring your business has a clear plan for environmental and social impact is more important than ever for recruitment purposes. Working for an organization whose values align with their own is so essential that in a survey conducted by the nonprofit Net Impact, 45% of workers agreed they would take a 15% pay cut for a job that makes a social or environmental impact.

Leveraging your sustainability initiatives will not only help you attract talent but will help you keep employees engaged. The same Net Impact survey shows that 53% of workers said that “a job where I can make an impact” is important to overall happiness on the job.

3) It’s better for the bottom line

Pursuing sustainability in a way that creates value can result in incredible results for your business’ bottom line. According to a 2012 research study conducted by Deutsche Bank, which evaluated 56 studies of companies with high ESG (environmental and social goal) ratings, 89% of the companies outperformed the market in the medium (three to five years) and long (five to ten years) term.

Environmental initiatives can help the bottom line in many ways, including mitigating the risk of loss due to government regulations and reputation risks, and creating opportunities for product innovation and expansion to new market segments.

Conclusion

Sustainability is the way of the future. It means growth for your business, a stronger connection with your customers, and happier employees. For businesses, sustainability should no longer be a question of “why” but of “why not”?