Why should companies incorporate sustainability into their businesses?
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- Опубліковано 12 лип 2024
- Why should companies incorporate sustainability into their businesses?
All living things need clean air, fertile lands, unpolluted rivers and uncontaminated seas: all these are unquestionably essential for the continued survival of the earth.
Although this so is clear, do businesses care?
Think about three important questions:
a. What are the advantages of implementing sustainability policies?
b. Is it worth it?
c. What if businesses refuse this new norm?
‘Sustainability’ in a business describes the ability of businesses to coexist with, and even enhance, their environment.
Big businesses are increasingly being pressured to incorporate ‘green’ and ‘socially responsible practices’ into their corporate strategy.
Is ‘profit’ the only aim in business?
To some businesses, ‘sustainability’ only makes sense if their business can make greater profits.
So, some business owners deliberately close an eye to sustainability.
That business is not there only to generate profit is a universal truth
It is selfish and self-destructive to use ‘profit’ - as a measure of business success.
Could ‘sustainability deliverables’ be measured?
Twenty years ago, no one could not draw a straight line between how the behaviour - irresponsible behaviour - of a business would affect global temperature rises or how that prejudiced - or enhanced - the value of a business’s assets.
All that has changed.
Increasingly, independent international bodies measure and give - or remove - ‘credit’ or ‘points’ from companies that practise sustainability goals.
No one will invest in a company that secretly abandons drums of poisonous waste material in caves.
No one would dare be part of a board that kills whales or cuts down rainforests.
The important point is: True sustainability practices are an intangible asset.
Institutional investors like to associate themselves with responsible companies.
If a company’s sustainability implementation improves economically, it stands a better chance of survival and success.
Advantages
Let us see how sustainability is crucial for the survival of any business.
#[1]. It creates new markets.
Any corporate move towards sustainable responsibility brings into play new factors.
Businesses become more innovative.
They offer new products.
They provide novel services.
Tesla
Its electric-powered vehicles cut carbon monoxide emissions.
To a great extent, BMW has also seen the writing on the wall.
All that opens new revenue opportunities.
In the financial services sector, new ‘products’ have emerged: e.g. ‘green bonds’, environmental risk solutions, e.g. insurance linked securities, and ‘carbon credit’ trading platforms.
Sensefolio, a data provider
Sensefolio ‘rates’ companies on their commitment to environmental, social and corporate governance values.
They use artificial intelligence to ‘rate’ a business’s Sustainability Commitment.
The ratings cover wide areas of businesses, ranging from clothing to groceries.
#[2]. Sustainability offers a Unique Selling Platform.
In a few years, sustainability will become the norm.
Right now, however, investors see companies that support sustainability as ‘unique businesses’.
And these businesses are more attractive.
This one factor - this uniqueness - keeps them leaps and bounds ahead of their competitors.
Easy Jet
Recently Easy Jet announced that it will operate ‘net-zero carbon flights worldwide’ by planting more trees.
It promises to cut down carbon dioxide release.
This will cost the airline $25 million in the next financial year.
Its Sustainability Policy will boost its brand image.
The $25M spent is a catalyst.
#[3]. Regulators like it
All over the world, regulators are increasingly imposing specific sustainability requirements.
#[4]. You become less of a target.
A business that practises sustainability initiatives indicates responsible management, a healthy corporate culture, and environmentally conscious operations.
Businesses with a strong sense of respect for the Earth make them less of a target.
#[5]. Sustainability creates Customers Loyalty.
A recent survey Shelton Group, Nielsen and Horizon Media conducted suggests that
most consumers are more likely to buy from businesses that practice sustainability policies.
Consumers will spend more money on sustainably manufactured products.
They worry about the well-being of future generations.
#[6]. The pursuit of sustainability is now a strong Consumer Lifestyle
It gets brand loyalty.
#[7]. Sustainability has another intrinsic value - it generates a new world of business
Before sustainability becomes the new normal, early movers will benefit the most.
Is your business one of them?
Or will you be left behind, in the wake of a New Earth?
Gratitude
Envato Element: images and videos
Wow well said!
Thank you Sivachan
Welcome Back GK! We all need some R&R and you deserves it with overdue interest. I like the new set up. I have been in business all my life, selling ducks, flowers, food and all one thing in common sustainablity. Quite honest to say that greed plays an important role to make money. The older generation kept telling me to give some to those in need as one makes his/her coins. You will be bless with you kindness. No that does not include the trip to "nombor ekor". cheers
Thank you for your kind words!
Only "due to pressure" did companies looked into the advantages of "green technology", but unfortunately the Ukraine issue seems that this may be "rolled back due to uncertainties". It is going to take a long time for humans to realise that they are forever linked with this environment. A great piece of enlightenment.
Thank you
Welcome back GK sir...👏👏👏
Hi! Yes. Had to take a break!
Hi Sir, good day. Welcome to home...
Thank you JR
Which company does practice sustainability in Malaysia? I never heard of such news, too few to notice. Local businesses are far from it, only individuals are practicing reduce and reuse.