Becoming a sustainable business is not simply a trend, and therefore the international community has touched on the far side of the “going green” motto. Sustainability could be a universal, long-run approach to only solely manage environmental risks, however social and financial risks as well. A sustainable business consists of three-sphere known as triple bottom line (3Ps) i.e. People, planet, and profits.
If you take a business sustainability approach, it means that your business has no significant negative impacts on the society and environment while your organization is flourishing financially. The business sustainability approach encourages organizations to concentrate on long-term objectives, targets & strategies, and it can offer a wide range of benefits in return.
For organizations to accept the business sustainability model and take it as a serious business strategy, we must be able to define and quantify the financial benefits that can be achieved from business sustainability strategy. Then business sustainability models can become criteria to measure the success of the organizations because as with any other model, return on investment is the ultimate measurement of success.
Improved brand image and competitive advantage
In one study conducted by Natural Marketing Institute from more than 53000 US consumers, it was revealed that 58% of consumers consider the impact of an organization on the environment before choosing to purchase any goods or services from it and are more intended to purchase from an organization with sustainable business approaches incorporated in their system. This leads to approximately 68 million American clients who favor those companies that have a good track record in social and environmental values.
It was also found that these consumers were willing to spend even 20% more on products that are environmentally friendly. Brand awareness and image building is becoming increasingly important. Creating awareness campaigns on sustainable business topics like water or energy conservation or paper conservation not only conserves resources but also improves awareness about the brand.
Productivity increase and cost reduction:
The people who are critical of a sustainable business model claim that these practices can reduce the corporate profits. But in reality, if we develop sustainable business practices, it leads towards operational efficiency improvement due to streamlines efforts, resource conservation, which enhances employee productivity and reduces costs. Cost reduction can also be achieved through sustainable business approaches e.g. energy conservation by a few simple practices likes switching off unnecessary lights and appliances and using energy efficient equipment. sustainable business practices might have a huge initial investment but long terms results will justify the investment.
Compliance with regulations:
As with the increase of awareness about climate change, global warming, reduced energy resources, and other environmental impacts, governments are increasingly trying to develop and enact different regulations to protect and conserve the environment and to make their business a sustainable business. If an organization integrates sustainable business practices into its business, the organization will be in a position to meet the always changing regulations.
You can read here ” What is Compliance and its Requirements “
Attract employees and investors.
People, especially the young generation is attracted to sustainable businesses that work on environmental conservation as they have been raised in an environment where there is the continuous message of environmental protection/activism and does not want to work with an organization that has environmental disasters and social scandals. Presenting your organization as a sustainable business, respectful to the environment and employees/society will not only attract component people but will also attract investors.
Waste Reduction:
Waste reduction is the most common and simple way to encourage organizations to engage in sustainable business practices. Utilization of 4Rs technique to reduce the solid wastes, replacement of energy efficient equipment’s to reduce energy waste.
Minimize Carbon Risk and Improve Energy Efficiency
It is expected from all companies to cut down 25% of their Carbon emission till 2020 and further cut down 50 to 80% till 2050, which will become mandatory by Law. This will also affect the cost and availability of electricity.
Read Here: ” What you can do to help save Environment “
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