1. Greater understanding
Sustainability becomes a genuine competitive edge when embedded in the core and strategy of a business, rather than just being an add-on. Identification of sustainability themes, goal setting and metrics provide new tools and perspectives which help companies to develop and understand their business environment. Companies exist to provide customers with solutions that meet their needs and problems, but such needs are changing faster than ever. If you listen intently to your stakeholders, you’ll be able to anticipate and understand the needs and preferences of consumers, customers and investors.
2. Credibility and trust
Many large companies are obliged to report on sustainability. For this, they need data and reports from their smaller partners. In sectors with long subcontracting chains, main contractors may expect subcontractors to report on the number of sick leave days and occupational accidents. On the other hand, getting your products onto the shelves of large retailers can depend on various standards, certificates or carbon footprint calculations.
3. Cost saving and efficiency
Sustainability goals and metrics will help your company to find ways of reducing your water or energy consumption, for example. They also provide cost savings: waste heat recovery or installing solar panels on an office roof reduces the need to purchase energy. The circular economy, on the other hand, reuses product and side stream waste to turn one company’s waste into another company’s fuel, for instance. Recycling and the circular economy also reduce dependency on virgin raw materials, whose prices and availability can be volatile.
4. Better risk management
Taking account of sustainability will give you a broader perspective on which risks are key in terms of your business. This will help your company to prepare for changes and future scenarios concerning the business environment. For example, climate change and cyber threats bring new kinds of risks, for which companies did not previously need to prepare. On the other hand, the green transition may make some types of business and sectors redundant (think single-use plastic straws or abandoned oil rigs) while also bringing new opportunities.
5. Reputation and respect
Many young customers, potential recruits and partners view sustainability as a deal-breaker – without it, no deals or agreements will be signed. Sustainability also differentiates companies in many sectors, most of all in international markets. Reputation is built on a proven track record. If a company is known to be a sustainable business, its reputation will be more resilient to learning through trial and error, including in sustainability and corporate responsibility work. It pays to tell the world about consistent and committed sustainability efforts.
6. Greater employee satisfaction
When a company is socially responsible and its employees thrive, it has lower employee turnover and recruitment is easier. A company’s values and sustainability also make work meaningful, which improves employee retention. Additionally, a diverse, inclusive and equal work community brings a range of competencies and perspectives to a company, promoting activities such as innovative product and service development, and the search for new markets.
7. More financing opportunities
Investors are actively seeking sustainable alternatives. Private and government financing, support and grants are available for a range of green transition projects and development activities. Green transition projects require high levels of investment, but many companies are unaware that a range of financing channels exists for such projects. Moreover, lower-cost financing lowers the threshold for making bigger investments.
Are you interest about green financing solutions? Our specialists help you find a financing solution that suits you green investment.