Why Making Your Company “Green” is More Important Than Ever
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Looking at the current state of the world makes it apparent that a proactive approach to sustainability is more imperative today than ever before. Projections reported by the UN predict that the global population will grow to 9.7 billion by 2050.
At the current rate of population growth, maintaining current living conditions could quickly deplete the planet’s remaining natural resources, especially since today’s consumption practices are already causing so much damage. Natural purification processes cannot get in front of the rate at which human activities pollute rivers, and unsustainable water use, declining soil fertility, and overfishing are reducing the world’s natural base supply of food.
Companies play a vital role in mitigating the damage caused by climate change. Given the cost of switching to green operating processes — such as green energy, production, and transportation — it had been difficult for many businesses to make the transition.
However, at the same time, the demand for sustainable brands continues to rise, creating more opportunities for profitable sustainability. Below, we’ll dive into a few reasons making your company “green” has become more important than ever before.
Consumers Champion Sustainable Brands
The devastation caused by the COVID-19 pandemic propelled world issues into the forefront of mainstream awareness. Global research commissioned by the World Wildlife Fund reveals that searches for sustainable goods rose by 71% within the past five years, seeing a large growth during the pandemic. Many have actively changed their consumption habits in support of green and sustainable companies.
Additional research also shows that today’s consumers demand to see improvement when it comes to the way companies address climate change. Therefore, companies can create higher revenues by aligning their products and practices with the demands of today’s consumers.
(Source: Pexels)
ESG investors finance sustainable companies
Investors these days look beyond just the financial aspect when making investment decisions. ESG (environment, social, and justice) investors, for example, place their funds in socially responsible or sustainable businesses. An FXCM article on ESG investment reveals that, in 2018, this kind of investment strategy accounted for 20 trillion USD (17 trillion EUR or 14.6 trillion GBP) in assets under management.
Research also shows that companies that practice sustainability perform better on an operational level, which invites more cash flow and investments. Companies that want to take their financing further can improve their sustainability practices and take advantage of the growing popularity of ESG investing.
Sustainable companies attract quality jobseekers
2021’s Great Resignation showed that today’s job seekers have become more selective when it comes to the companies they work for. A failure to align with the values of today’s workers could lose businesses many qualified employees.
Additionally, an IMB job seeker survey reported that 71% of employees and employment seekers claim that they prefer environmentally sustainable companies. 50% of respondents even said they were willing to take lower salaries for the privilege of working with an environmentally friendly organisation. Therefore, companies who want to stand out in today’s competitive hiring landscape need to adopt values and practices that job seekers value, such as sustainability.
(Source: freepik)
Sustainability Increases Efficiency
Though it can be expensive to make the shift toward sustainability, certain green processes, such as green energy, can cut operating costs in the long run. Additionally, some governments provide tax reliefs for companies that use green technology.
Aside from creating obvious positive impacts on the environment, shifting toward green practices can help your business on an operational level.
Author: Blog content courtesy of our partner, SmartHead
If you want to find out more about how reporting your ESG can benefit your business
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