In the 21st century, companies are becoming increasingly aware of corporate social responsibility and the consumer’s expectations from conglomerates. Business organizations don’t just exist to enhance their profitability and pursue commercial objectives today. Statistics show that consumers can switch to environmentally conscious brands. At the same time, they’re prepared to boycott companies contributing to pollution.
Since people expect businesses to “do more” than making a profit, pursuing environmental sustainability has become imperative for both success and survival in the marketplace. We’ll explain why companies should adopt CSR and attempt to reduce their carbon emissions in 2021 significantly.
Business Benefits Of Environmental Sustainability
Since industrialization accelerated in the 20th century, people became more cautious about their capitalist endeavors’ influence on the world’s environment. You might’ve heard this back in 2017 that just 100 companies caused 71% of global emissions since ’88. That’s why organizations today focus on conserving natural resources and protecting the environment. Thus, you can utilize renewable energy sources, reduce waste products, recycle old metals, and vow to “go greener” to save the earth.
Studies say that over 90% of Gen-Z want companies to address today’s social, political, and environmental problems. The exact number of customers are more willing to purchase from brands that support a cause. It has become essential for businesses to give back to their communities. You can now choose corporate social responsibility initiatives you care about and ask employees to volunteer. It’ll help you boost your marketing efforts. Let’s see how environmental sustainability is helpful for your company as a cause:
Reduces your waste
It’s a no-brainer that becoming environmentally sustainable enables you to reduce waste along with conversing energy for future generations. It started in the ’90s when companies used to collect cans to recycle them later. Companies have now moved on to decrease paper dependency (going digital) and replace incandescent lights with LED bulbs. It thus makes your company more sustainable and also enhances the workplace’s efficiency. Moreover, reduced costs are another advantage.
Lowers your costs
Going green helps your company perform its operations cost-effectively. That’s why we recommend you reuse, reduce, and recycle for lower costs. Let’s talk about paper, shall we? A company spends 3% of its revenue on paper, uses 10,000 sheets annually, and dumps 45% of printed materials daily in the garbage! So, you can save money by printing things double-sided, shredding extra paper, and using scrap paper to record messages. These practices contribute to your organization’s profitability.
Increasing your profitability
Lower costs mean enhanced profitability. Making your business more sustainable boosts sales since more consumers are interested in conducting business with eco-conscious companies. A McKinsey survey shows that socially responsible organizations have outperformed competitors with their commitment to environmental sustainability. Therefore, businesses that promise to diminish their carbon imprint have convinced more employees to stay and work for them.
Reduces employee turnover
Millennials aren’t willing to work for old-fashioned corporations where sustainable practices haven’t been implemented. They prefer working for eco-friendly and socially active organizations. A survey shows that 90% of workers are prepared to accept lesser wages for doing something meaningful. So, adopting sustainable practices will enable you to attract fresh talent and reduce employee turnover. Just look at the Bank of America giving subsidies to workers installing some solar panels at home.
Enhances your compliance
With growing concerns about climate change, many state/federal agencies want organizations to comply with eco-friendly regulations. These regulations – for instance – compel businesses to stop wasting water and dispose of their waste properly. So, adopting sustainable practices allow you to comply with these regulations effectively and avoid penalties in the future. We have many examples of companies being punished for polluting the environment, thereby getting “bad publicity.”
Brings more customers
It was predicted two years ago that the sustainable products market would reach $150 billion by 2020. We’ve already seen how sales have increased by 20% since 2014 as more consumers are now buying eco-friendly products. It shows how promoting your commitment to sustainability practices can lead to more customers. We’ve explained in the introduction how more people are now willing to conduct business with environmentally conscious companies. So, show them that you care!
Winning new markets
Companies can’t survive today’s competitive marketplace without finding new markets to leverage. And adopting sustainability practices will help you access untapped audiences. These practices make you grow popular among potential investors who monitor your performance and several CSR initiatives you’ve undertaken. Have you heard about the Dow-Jones Sustainability Index?
Investors utilize this method to assess your organization’s commitment to protecting the world’s environment today. So, suppose you insist on being a dinosaur by refusing to adopt eco-friendly practices. In that case, it’ll just reflect poorly on your public perception. To win new markets, you must improve CSR demonstrations.
Becoming a leader
Those companies who wish to become leaders in their niche embrace sustainability. It enables them to act as trend-setters and acquire a better market. Not just people but even businesses are interested in buying green products today. So, adopting sustainability practices will help you spread awareness about CSR and position yourself as an industry leader.
There are examples of small businesses that outperformed their competitors solely because their products/services were more eco-friendly. The growing popularity of environmental sustainability has enabled organizations to lead this trend and convince more businesses to protect the environment. That’s what customers expect of you now!
Improves brand image
Sustainability contributes to your brand’s improved reputation. Since customers are familiar with the environmental challenges facing humanity today, they’re more supportive of companies attempting to reduce their carbon imprint. A survey shows that 87% of consumers consider the social impacts of products they purchase.
Also, some companies are spreading awareness along with practicing sustainability to boost their marketing endeavors. You shouldn’t forget that actions speak louder than words, so speeches won’t improve your brand image! Consider Unilever‘s example where they sold PG Tips beverages in biodegradable tea bugs to protect the environment.
From Nike to eBay – several companies have taken environmental sustainability initiatives to regulate their impact on the environment and please their niche. A 2011 survey by Deloitte shows that some 70% of millennials decided to work for a company committed to the community’s betterment. CSR today has become essential to retain both your employees and your customers.
The renewable energy market’s expected to cross the $2 trillion mark by 2025 – being environmentally conscious can be helpful in the long run! CSR adds to your brand value, helps you meet people’s demands, and hones your company’s efficiency. That’s why it’s a path to progress and profitability for modern-day businesses.