Why Should Companies Implement Sustainability Strategies?
Here are the benefits of implementing sustainability strategies:
1. Increase Brand Value
Millennials are the most populous generation. According to a Nielsen poll, millennials are twice as likely as baby boomers to claim they are changing their habits to decrease their influence on the environment. Generation Z is on its way to becoming the next dominant generation, and it is just as concerned about sustainability as millennials, if not more so. This demonstrates that focusing on sustainability can significantly boost corporate brand value, and many of the world's leading brands are doing just that.
2. Increase Efficiency
A sustainability plan, according to McKinsey, can save expenses significantly and increase operating profits by as much as 60%. It also reduces energy and water consumption. By incorporating sustainability into business divisions, an organization's chances of benefitting from its sustainability efforts are increased. Being environmentally friendly can also help us enhance your relationships with the government and the local community. It may be able to obtain tax benefits for the company.
3. Meet Consumer Demands
According to Nielsen research, 55% of consumers would pay extra for a product if it came from a sustainable brand, and 81% of global consumers believe businesses should benefit the environment. More people are shifting their thought and attitudes toward sustainability, and this tendency is only growing as the number of the latest generation grows. Though social and economic aspects of sustainability are important, environmental issues are at the forefront of the discussion.
4. Attract Talent
When it comes to attracting talent, being sustainable is critical. Nearly 40% of millennials have accepted a job because of the firm's sustainability, and many are even willing to take a wage sacrifice to work for an environmentally conscious company. With millennials now accounting for the majority of the workforce, failing to develop a long-term strategy could result in a loss of valuable talent. Employees may be more motivated to work if they find value in what the company is doing if the organization is sustainable.
5. Open Up New Markets
A strong sustainability proposition may assist businesses in entering new markets and expanding into existing ones. By 2030, China's plan to combat air pollution is expected to generate investment possibilities worth more than $3 trillion. Corporations that prioritize sustainability will have the best chance of securing lucrative new business prospects.
1Forbes, 14 Nov 2019, James Da Costa, The Sustainable Development Goals: What they are and why you should care, Accessed 2 Nov 2021, https://www.forbes.com/sites/forbesnonprofitcouncil/2019/11/14/an-improvement-science-approach-to-goal-setting/?sh=6e9c8d29542e
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