Can Sustainability and Profitability Go Together?
People often wonder can sustainability and profitability can go together in a business environment.
The answer is that they do go together and must go together.
Sustainability for business is relatively new, and it means shifting the paradigm when it comes to making a profit.
We see the effects of climate change all around us, with rising power costs, loss of resources, and rapidly changing weather.
On top of this, many of us talk about making sustainable changes.
But did you know that nearly 40% of the Fortune 500 global companies have not made a climate commitment, never mind taking action?
Both McKinsey and Forbes showed how sustainability and profitability go hand in hand, and it follows that companies not taking action will get left behind.
Continue reading to learn why sustainability and profitability go together.
Sustainability Increases Profitability and is a Fantastic Opportunity for Business
Investing in sustainable practices for your business gives returns on many fronts.
Below are just some of the compelling reasons for any business to embrace sustainable change.
Sustainability is now no longer just good for the planet…it’s great for business.
Sustainability Enhances Brand Value and Consumer Loyalty Increasing Profitability
We live in a changing world where Gen Z and Millennials make up the largest consumer and employment groups.
As well as having the biggest spending power, they also demand social impact and sustainability.
Following on from that, sustainability is also now an investor priority.
That is in addition to consumer and employee priorities, providing businesses with incredible opportunities to build on going green.
Doing business in a better way and focusing on green and social impacts will strengthen your business and brand.
Along with this, consumer loyalty is strengthened in groups that are vocal about their likes.
This is because they come from a world of sharing and thumbs up (social media).
Increasing loyalty and growing brand value is only good for business.
A fine example of why sustainability and profitability go together.
Sustainability Saves Money Leading to Increased Profits
Looking at energy costs alone, embracing sustainable technology and practices reduces a business’s operating costs.
These technologies help a business operate more energy efficiently, resulting in lower consumption and thus costs.
An excellent example of this is Jones Lang LaSalle, which has embraced digital and electrical energy reduction solutions to increase profitability.
Their buildings are connected to power, air quality, and other efficiency modules within a single system.
In doing so, the company reduced its energy consumption by 30% saving a considerable amount of money.
This is just one example of many to show that sustainable practices can cut operating costs.
A clear demonstration that investing sustainability goes together with profitability.
Sustainable Practices Build Business Communities
As businesses delve into their emissions, the supply chain has to be assessed.
Supply chain emissions can be up to twelve times larger than a company’s own operating emissions.
That’s why they have to be taken seriously.
It does start with the bigger players demanding sustainability from their suppliers.
But as these suppliers go green to meet demands, so do others.
The trickle-down effect means that smaller businesses that want to go green now have options to put pressure on their own suppliers.
Partnerships begin to develop between sustainable suppliers and businesses going green.
A good example of this is Walmart’s drive for sustainability and how they are providing their suppliers with the tools they need to go green.
These suppliers have all grown in revenue as businesses gravitate towards them.
Another fine example of why sustainability and profitability go together.
Sustainable Businesses Attract and Retain the Best Talent
Research from across the globe shows that there has been a seismic shift.
The shift has taken place in the values, wants and needs of Gen Zs and Millennials when it comes to employment.
A recent poll by KPMG showed that 1/3 of Gen Zers interviews had rejected a job offer because they didn’t like the company’s green credentials.
They also found a growing group of ‘climate quitters’ leaving their jobs as they disagree with the company’s environmental policies and practices.
Furthermore, the poll found that 55% of people aged 25 to 34 were most likely to value ESG commitments by their employer.
Gen Z was the next highest group with 51%.
This goes to show that investing in sustainability as a business is more attractive to over half the employment group from school age up to 34.
Another fantastic example of how sustainability and profitability go hand in hand.
Play It Green
Want to take your business on the journey of sustainability?
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Through our 3-step solution, we support footprint reduction, repairing the planet (through reforestation) and increasing social impact by regiving 10% of turnover to charity.
For £5 per person a month we send out a weekly newsletter with our weekly tip, sustainable discounts, news and education.
Following this, we plant thirteen trees each month with our partner Eden Reforestation in Madagascar and give 10% of the subscription to a charity of your choice.
That’s a lot of positive impact and value for less than a coffee and a piece of cake!
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