The Importance of Supporting Sustainable Companies

Look around you; you'll see that everybody is trying to make more sustainable, greener choices one way or another, be it swapping to reusable bags or purchasing organic products. These efforts even create their markets; the reusable straw market offers customers metal, silicone, bamboo, or glass straws to choose from and has reached the value of US$ 1.8 Billion in 2021. More people are looking to start zero-waste markets as they are getting more and more popular among people to get plastic-free food and liquid refills worldwide. As in these examples, customer trends are shaping the future of businesses and making sustainability a trend that will continue to move forward.

This is not news for many companies considering 90% of executives say that a sustainability strategy is essential to remain competitive, according to the corporate sustainability study from MIT Sloan Management Review and The Boston Consulting Group (BCG). However, the same research also shows that only 60% of these companies have a sustainability strategy. Therefore, we can say that what makes a difference here for companies is not to have a sustainability plan but to implement them. So what would lead companies to close this gap between creating and implementing sustainable business plans? Or what would be the leading force companies to design their sustainability plans to start with? Is there anything you can do as a marketing official to promote the implementation of existing sustainability plans in your company or assist in creating one and putting it into work?  

Supporting sustainability starts with understanding the importance of it. Once decision-makers know the difference sustainable business practices create, sustainability becomes imperative for their companies and brands. Therefore we'll be offering to close the gap by embracing the importance of supporting sustainability in purchasing, sustainably sourced products, and sustainable business overall. To help you with this mission, we'll discuss how companies can benefit from being more sustainable and supporting sustainable practices. 

What difference creating sustainable business practices would make? 

Sustainability is often associated with environmental issues; however, it is not simply about environmental degradation but making social and ethical choices. On the other hand, economics is one of the three pillars, maybe the most overlooked, pillars of sustainability together with environmental and social. One of the biggest traps to fall into while considering sustainable business practices is seeing sustainability as a threat to companies' profits. However, sustainability in business is more an opportunity than a threat. No matter what your business is, sustainable business practices earn profits in the long term by being especially responsible and protecting our use of the planet's resources. Let's have a look at how!  

1. You'll be selling more products or services.  

Deloitte UK's recent survey shows that 32% of UK consumers are highly engaged with adopting a more sustainable lifestyle, and 28% of consumers have stopped buying certain products due to ethical or environmental concerns. Similarly, another survey run by Accenture in 11 countries across North America, Europe, and Asia among 6.000 consumers reveals that 72% of the respondents are currently buying more environmentally friendly products than they were five years ago. These results show that no matter where you are around the world, your customers value sustainability more than ever. So the sustainability in purchasing, production, and even delivery, would make your products and services appealing to a larger consumer group.  

The shift in consumer buying has also changed the value and benefit paradigms of the customers. According to Nielsen's study, 66% of global customers are willing to spend more on a product if it comes from a sustainable brand. Considering this, it can be said that personal values are getting more important than personal benefits among customers, and you should take this change into account while pricing your sustainably sourced products.  

On the other hand, we established that the demand for sustainable businesses is popular today. However, studies show that sustainability will be the leading way of doing any type of business in the near future. Accenture's comprehensive survey finds that 81% of the respondents expect to buy more sustainably sourced products over the next five years. Thus you can see how inevitable it is to opt for sustainable business practices for the future of your business. This is even without talking about the next dominant generation, Generation Z, and their increasing concern about sustainability compared to Millennials and baby boomers.  

2. You'll be spending less money on production. 

Moving towards more sustainable alternatives in energy use, purchasing and transportation will lower your operating expenses in the long run. Let's put this into a simple example; an average commercial property can reduce its electricity cost by approximately 89% by converting to solar energy. Even if it takes an upfront investment, most businesses pay off the price of panels in five to seven years. On the other hand, the cost benefits you get from sustainable business practices vary among industries and the type of practice. However, returns on capital have significant value for many businesses.  

According to McKinsey, there is also a significant correlation between a company's resource efficiency and the strength of its financial performance. Their studies found that you can increase your operating profits by up to 60% by reducing resource costs. Moreover, sustainable businesses improve the possibility of profiting from their sustainability activities in terms of money and the image. Sustainable business practices can get your company tax incentives and subsidies and improve relations with the government and the local community. One thing to remember here is that the more sustainable your business becomes, the less you'll spend on energy and materials. 

3. You'll be more preferable among top talents. 

Being sustainable is adding more value to the job your company is doing. Together with the World Business Council for Sustainable Development and the Global Network for Advanced Management, Yale University conducted a global study at 29 top business schools among more than 3,700 students to understand the effect of companies' sustainable business policies on attracting talent. According to the study, 44% of students are willing to accept a lower salary to work for a company with better environmental practices. On the contrary, one-fifth of students said that they would want to work for companies with bad environmental practices no matter what the salary. The situation is similar when it comes to the current workforce; almost 40% of millennials choose to work in companies that care for sustainability, and they are even willing to take a pay cut. So if you want to work with top talents, make sure to have a sustainability strategy in place even before GEN Z has become the largest workforce. 

How to support sustainable businesses? 

Sustainability is becoming much more critical to all stakeholders, including consumers, regulators, and companies. Thus, it is best for your business not to overlook its importance. Considering sustainability will only get more popular, not embedding sustainable solutions into your company's business plans might turn its benefits into a disadvantage for you. Intengine offers you a place to list your company among the responsible businesses that share the same mission and get recognized for your company's sustainable efforts. You can also use Intengine's directory to find sustainable partners for your company. 

Tags: sustainable business, sustainable business practices, green business, benefits of sustainable business