Sustainable practices have become an important issue for the general public – and this includes consumers. In a survey conducted by IBM, 49% of consumers indicated in the prior 12 months they’ve paid premium prices for brands promoting themselves as sustainable or socially responsible.
Why Are Sustainable Practices Important for Corporations?
Business leaders are also coming around to the realization that sustainability is important. According to The World Economic Forum (WEF), a whopping 90% of executives feel sustainable practices are important. Yet, interestingly enough, only a mere 60% have implemented strategies to support sustainability.
Sustainability practices aren’t going to be a passing trend, this mindset is here to stay. Decision-makers would be wise to take a closer look at investing in sustainable practices. Aside from doing the right thing, large businesses that embrace sustainable practices are going to enjoy numerous benefits.
Improve Brand Recognition
The statistics back it up – corporations that demonstrate environmentally friendly and sustainable practices improve public perception of their companies, which can give them a big boost in brand recognition. For instance, those that invest in electronic recycling to reduce their landfill waste take a big step in helping promote sustainability.
All it takes is one environmental fiasco or other events to tarnish a brand’s reputation. Consumers will not support companies that act unethically or don’t support environmentally-friendly practices to prevent disasters. On the other hand, those acting proactively and responsibly will gain the respect of the public and entice them to become customers.
Create Business Value with Sustainable Practices
When it boils down to it, sustainable practices for large corporations create business value and opportunities. Companies that embrace ESG (environment, social, and governance) and get high ratings enjoy operating margins higher than those with lower rankings. This equates to long-term success and profitability. It is clear sustainability matters and those companies investing in ESG sooner than later position themselves to be respected businesses. People gravitate towards companies with strong ESG values – not just talking the talk, but walking the walk.
Align With Public Demands on Sustainability
As survey after survey demonstrates, the public considers sustainable practices for large corporations to be a priority. Companies that make the commitment satisfy consumer demand, investor demand, and even that of top talent. This helps them to grow and gain a solid competitive advantage.
Millennials and Gen-Z consumers drive the current market and these two generations are committed to sustainability and demonstrate this in their buying and investing habits. Generally, consumers are willing to pay more for greener products or to support a business pursuing sustainable practices. And Gen Z’ers are even influencing their older counterparts in Gen X and Baby Boomers, further illustrating that sustainability isn’t a passing trend when it comes to consumer demands.
The above also translates to today’s job seekers. Top talent often aligns their career decisions with their personal ethics. This means that a growing number of applicants will opt to work for companies that support sustainable practices and other corporate social responsibility traits, even if it means a reduction in pay.
This matters a lot in job markets where top talent is highly competitive and there is a shortage. It can make the difference between not only appealing to top talent but retaining them and reducing costly employee turnover.
Companies also need to consider how their sustainability practices affect investors. One thing that has become consistent is that Gen Z and Millennial investors are using their growing wealth to support companies that are “driven with a purpose.” This further demonstrates that investors will absolutely put their money where their mouth is when it comes to supporting their personal beliefs associated with sustainable practices.
Sustainable Practices and Regulatory Requirements
Regulatory requirements and compliance are two issues that cannot be ignored. Those businesses that don’t invest in sustainable practices to meet ongoing changes in both domestic and global laws are going to find themselves in trouble down the road.
Many countries are committed to sustainable practices that include reducing waste (including e-waste), decreasing pollution, and eliminating carbon emissions, and are consistently passing stricter laws and mandates with set dates to meet these goals.
Those companies that do not abide will face regulatory action and fines. Transforming sooner than later is simply a smarter choice since these requirements are coming either way.
Reduce Costs and Boost Profitability
Companies that find new ways to promote sustainability often find it keeps money in their budgets to use for other expenses or to invest in their core competencies. For example, investing in energy efficiency decreases costs associated with utilities, or committing to reducing raw materials used in production can create higher efficiency and can save money on production. Not to mention, sustainable and green practices can leverage new opportunities which can generate revenue that can be reinvested back into the business.
In the end, sustainability promotes a healthier environment and lifestyle. Companies that reduce their negative mark on the environment help promote a positive future for everyone.
Ready to Start to Make Your Positive Mark on Society?
Companies today heavily rely on technology to drive their businesses. Unfortunately, a side effect of this is generating significant amounts of e-waste. However, you can reduce your negative footprint on our Earth by committing to recycling and reducing your level of e-waste?Want to learn more about how evTerra can help you commit to and reach your sustainability goals? Contact us today to learn more about what we do. We’ll also provide you with a custom quote.