An increasing number of businesses are incorporating sustainability into their overall company plan, realising that they can make money while also doing good. A recent McKinsey poll revealed that 70 per cent of respondents indicated their organisations have formal sustainability governance in place. What does it mean exactly to be “sustainably” successful in business?
Business sustainability is the practice of not negatively harming the environment. A green business is considerate of the local and global environment, thereby benefiting the community and economy. A socially and ecologically conscious company considers more than just profitability. A firm that contributes to the health of the structure in which it operates is a sustainable business.
The triple bottom line was coined in 1994 by John Elkington, founder of the British consultancy SustainAbility. Profits, people, and the earth comprise the triple bottom line. A sustainable business makes money while safeguarding the planet’s resources.
The Benefits of Sustainability in Business
Improved reputation
Getting embroiled in controversy is every business owner’s worst nightmare. Especially now, as more people are focused on ethical practices. Having unethical methods exposed and used against your company can be highly damaging.
For example, a corporation that allows an oil spill or forces employees to work in unsafe conditions will not be successful, especially the more public it becomes. A sustainable plan that protects the environment and your employees also protects you from costly incidents.
Lower Outgoings
The more sustainable you are, the more waste you cut from your operations to reduce your consumption and carbon footprint.
From making small changes such as swapping to recyclable packing and going digital to sourcing your own water on-site using Nicholls Boreholes to reduce water consumption and costs associated with public supply.
Meet Market Demand
According to a 2019 survey, global customers are willing to adjust their spending patterns to reduce their negative impact on the environment, and sales of sustainable products have increased by about 20% in the past four years. Millennials, in particular, are more prepared to pay a higher price for products that contain sustainable components or products that make claims about their social and environmental responsibility.
If your company commits to environmentally friendly products and practices, it will instantly appeal to environmentally conscious customers and increase your sales.
Become an Industry Leader
All it takes is for one company to make an innovative change, and before you know it, you have started a series of changes across your industry.
There are always ways you can change and improve what you do and how you do it—making these changes sustainable can allow you to enhance your reputation and give yourself a platform for others to look up to and take inspiration from.
The more consumers talk about how much they like your changes, the bigger your voice and the more visible you become.
There are many different benefits to making sustainable changes in your business. While there might be some initial costs associated with implementing greener technologies, this can save you money and increase your reputation in the long run.
