Why having a sustainable approach make good business sense?

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Being a green-minded business sounds like the responsible thing to do, but it is right for your long-term success? 

In real terms, sustainability is about taking action to ensure that your brand’s impact on the world around you is a positive one. This idea has gained considerable traction in the business space as companies have begun embracing everything from ethical hiring practices to green manufacturing methods. 

Yet, this all sounds great on the paper. But as a business holder, you may be wondering how you balance a commitment to people and the planet with the pursuit of profit, especially with limited reserves. 

The good news is, whether you’re a business of 300 or a startup of two, using a more sustainable approach isn’t just possible but increasingly important.

 The advantages of good behaviour

With a surge of the informed customer and greater transparency around the organisation conduct, people are becoming more careful about the business they advocate. Even studies have shown that consumers hold brands accountable for their impact on the environment. That, plus another majority that’s willing to pay 5-10 percent more on sustainable services and products.

The same evidence also proves that sustainable brand practices have the potential to improve employee retention, recruitment, and morale. In 2020 employees are more driven by mission and purpose than earlier generations and seek out jobs looking to provide value to society. Not to mention that when someone is doing good things, they are more likely to feel good about working there, which, in turn, can help improve overall productivity.

The outcome is, just as poor practice can have a negative impact, taking a responsible, value-driven approach provides an opportunity to position your business more favourably in the minds and hearts of the audience you wish to attract.

Making a start

If the idea of sustainability has already conquered your spirit, but you’re not sure where to begin, you can take inspiration from the UN sustainable development goals, a set of 17 objectives meant to set the world on a more sustainable course by 2030. These objectives include climate action, reduced inequalities, decent work and economic growth and conscientious consumption and production, among others.

Depending on the nature of your business, green-minded measures that support these objectives could include:

• Reducing energy consumption – small companies can tap into free, tailored energy advice programs meant to cut rising energy costs and reduce energy inefficiencies.
• Reducing waste and pollution: Australians generate one of the highest rates of plastic waste in the developed work. At the same time, e-waste is growing four times faster than the rate of municipal waste. Click here for a more comprehensive recycling option.
• Upgrading Equipment – whether it’s the refrigeration or heating system, you can find a lot more new and efficient options on the market, and there may be a program in your region that can help with replacement costs.
• Enhanced working conditions: this should include remuneration packages and fairer salaries, more flexible hours, employee/training development, and a stronger commitment to mental and physical wellbeing.
• Supporting a local cause – whether that’s a local school, charity or a local footy team giving back for a cause that reflects that value-can improve your brand image.

What sustainable trends will dominate 2021? 

2020 was unarguably a year like none other. Sweeping wildfires in Australia were soon surpassed by the pandemic – followed in fast succession by economic uncertainty, unrest and growing racial inequity, political discord, and the most active hurricane season on record. And because the COVID-19 outbreak continued, institutions and individuals alike understood there was no going back to the way things were, but rather this could be a chance to act resiliently and reconsider a better way forward. That said, in the midst of uncertainty and unrest, where did we see progress, innovation and possibility in 2021?   

• Completing climate commitments 

As the pandemic rages on, almost 63% of us expect US businesses to continue the progress they committed to regarding social and climate issues. 

This year, we witnessed many organisations meet huge sustainability goals – some ahead of schedule. Take Google – in September, the company announced it reached a lifetimes net-carbon footprint of zero, followed by a carbon-neutrality success from REI in the same month. 

• Competitors choose collaboration 

People are smart enough to understand that some of the world’s most aching challenges are too big for one company to solve alone. From this idea forth, we saw companies cross competitive lines to collaborate on solutions. 

At the onset of the pandemic, we saw Google and Apple join forces to develop an app-based contact tracing program; while Walmart, Nestle and General Mills CEOs all agreed on a CEO-led effort to end food waste. All in all, brands like Allbirds and Adidas 

opened the doors to each other’s suite in an effort to produce shoes with the lowest possible carbon footprint ever – making the first time Adidas has ever joined forces with a brand outside of its own portfolio.   

• Companies accelerate past carbon neutrality. 

Nearly 63% of US consumers think businesses have the opportunity, due to the COVID-19 pandemic, to be more pensive about how they will implement sustainability in their business model. Many climate promises were completed this year, but other businesses used this period as a launch-pad for even more aggressive programs.  

While most companies went beyond carbon neutral, a large majority announced objectives to achieve a carbon-negative future. Microsoft is one of those companies which promised $1 billion for a new investment fund to attain its carbon -negative goal in the ten years. 

2020 was the year many would prefer to solidly place in the past, but it’s still crucial we don’t forget the lessons we have learned this time. Every little bit pays when it comes to moving the world in a healthier direction – like making sustainability a core part of your business and sharing the same values with other businesses.