Benefits of Becoming an environmental Sustainable Business
Although each business has their own grounds
and motives for being more green and sustainable in business, here are a few of
the prime benefits to becoming a more sustainable company.
Enhanced Brand and Increase Competitive Advantage
The Natural Marketing Institute (NMI) has found in their consumer research that knowing a company is mindful of its impact on the environment and society makes consumers 58% more likely to buy their products or services. A subculture called “Cultural Creatives” has been emerging for the past 40 years and is now in the mainstream leading this sustainable uprising. This demographic according to the NMI is approximately estimated at 68 million adult Americans who make purchasing decisions based on their personal, social and environmental values. They find consumers are willing to spend up to 20% more on environmental sound products and services. According to the BBMG Conscious Consumer Report, nearly nine in ten Americans say the words “conscious consumer” describe them well and are more likely to buy from companies that manufacture energy efficient products (90%), promote health and safety benefits (88%), support fair labor and trade practices (87%) and commit to environmentally-friendly practices (87%), if products are of equal quality and price.
The Natural Marketing Institute (NMI) has found in their consumer research that knowing a company is mindful of its impact on the environment and society makes consumers 58% more likely to buy their products or services. A subculture called “Cultural Creatives” has been emerging for the past 40 years and is now in the mainstream leading this sustainable uprising. This demographic according to the NMI is approximately estimated at 68 million adult Americans who make purchasing decisions based on their personal, social and environmental values. They find consumers are willing to spend up to 20% more on environmental sound products and services. According to the BBMG Conscious Consumer Report, nearly nine in ten Americans say the words “conscious consumer” describe them well and are more likely to buy from companies that manufacture energy efficient products (90%), promote health and safety benefits (88%), support fair labor and trade practices (87%) and commit to environmentally-friendly practices (87%), if products are of equal quality and price.
Increase Productivity and Reduced Costs
Through development of more sustainable business practices, competence in operations will boost. With better use and conservation of resources, operations will be streamlined and costs will reduce.
Through development of more sustainable business practices, competence in operations will boost. With better use and conservation of resources, operations will be streamlined and costs will reduce.
Improve Financial and Investment Opportunity
Financial and investment analysts have recognized companies who have developed sustainability plans with regards to energy efficiency and reduction of environmental impact as an important evaluator measure. A study based on CFO Research that surveyed 175 top finance executives more than half believe their companies will increase revenue through strong sustainability initiatives.
Financial and investment analysts have recognized companies who have developed sustainability plans with regards to energy efficiency and reduction of environmental impact as an important evaluator measure. A study based on CFO Research that surveyed 175 top finance executives more than half believe their companies will increase revenue through strong sustainability initiatives.
Minimize Carbon Risk and Improve Energy Efficiency
In Ernst and Young’s 2008 report on ‘The Top 10 Business Risks for Business’ highlight two key business risks; 1.failure to react and plan for environmental regulations and 2.energy efficiency as vital business risks to alleviate. It is estimated that companies will be required to cut 25% of carbon emissions by 2020 and 50-80% by 2050 which will be mandated by both state and federal regulations. This will affect the availability and costs of energy which are expected to double within the next 10 years.
In Ernst and Young’s 2008 report on ‘The Top 10 Business Risks for Business’ highlight two key business risks; 1.failure to react and plan for environmental regulations and 2.energy efficiency as vital business risks to alleviate. It is estimated that companies will be required to cut 25% of carbon emissions by 2020 and 50-80% by 2050 which will be mandated by both state and federal regulations. This will affect the availability and costs of energy which are expected to double within the next 10 years.
Increase Employee Retention and Recruitment
Employees want to work with companies who are ‘doing the right thing’ and being positive with corporate environmental and social programs. A 2007 survey by Adecco, an international HR company, found that 52% of employed adults feel their companies should do more about the environment. More importantly, companies want their employees to be loyal and ethical to the organization. According to a Global Study of Business Ethics by the American Management Association, one of the top five internal practices for ensuring an ethical corporate culture is mounting corporate social responsibility programs. (Benefits of Becoming a Sustainable Business, 2013)
Employees want to work with companies who are ‘doing the right thing’ and being positive with corporate environmental and social programs. A 2007 survey by Adecco, an international HR company, found that 52% of employed adults feel their companies should do more about the environment. More importantly, companies want their employees to be loyal and ethical to the organization. According to a Global Study of Business Ethics by the American Management Association, one of the top five internal practices for ensuring an ethical corporate culture is mounting corporate social responsibility programs. (Benefits of Becoming a Sustainable Business, 2013)
According
to (Benefits of sustainability, 2013) , here are some of
other reasons that many organizations are choosing to engage with environmental
and sustainable practice.
- It saves money. We automatically find opportunities to start saving, by understanding how we waste things.
- It reduces your tax bill - climate change levy, landfill tax and more to come - need we say more?
- It can prevent prosecution for you and your suppliers, allowing you to get on with your business uninterrupted.
- It's good PR and adds value to your products and services.
- It opens up new opportunities to collaborate, develop products and keep stakeholders happy and confident.
- It's a responsibility and some say a pleasure, to preserve economic, social and environmental well being so that you and your children have an equal chance to provide for yourselves now, and in the future.
Benefits of Becoming a Sustainable Business. (2013). Retrieved January 2013, from
ecoofficiency:
http://www.eco-officiency.com/benefits_becoming_sustainable_business.html
Benefits of sustainability. (2013). Retrieved January 2013, from Sustainable
development : http://www.skyward.co.uk/sustdev/sd_benefits.htm
yeah.. It is not simply about reducing the amount of waste you produce or using less energy, it benefits and it‘s concerned with developing processes and that will lead to businesses becoming completely sustainable in the future.
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ReplyDeleteYes it is important to increase productivity through development of business practices and involves local people and provides them with rewarding, immediate work,& preserves functionality and diversity of system while providing a wide range of benefits.
ReplyDeleteIn many such cases, it has been seen that the businessman loses all enthusiasm and leave the business Scott Dylan Fresh Thinking Group
ReplyDeleteYes it is important to increase productivity through development of business practices and involves local people and provides them with rewarding, immediate work,& preserves functionality and diversity of system while providing a wide range of benefits. a3trading
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