Business case — Why make your business sustainable ?

So you’ve heard about the planet currently facing a lot of tipping points and the emissions increasing year on year is only taking us closer to more warming of the planet. Yes, it does make absolute sense to focus on developing your business integrating sustainability into your operations to reduce and restore the damage done to the ecosystem around us but you may be wondering what is the business value of it, what would be my ROI if I invest on building a sustainable business ? This article is to help you find those answers.

There are many reasons why businesses might choose to make their operations more sustainable. Some of the main benefits include:

1. Cost savings: Implementing sustainability practices can help a business reduce its energy use, water consumption, and waste generation, which can lead to cost savings.
2. Improved reputation: Consumers, employees, and other stakeholders increasingly value businesses that prioritize sustainability. By demonstrating a commitment to sustainability, a business can improve its reputation and potentially attract new customers.
3. Risk management: Adopting sustainable practices can help businesses mitigate risks associated with resource scarcity, regulatory changes, and reputational damage.
4. Innovation: Focusing on sustainability can drive innovation and help businesses identify new opportunities for growth.
5. Positive impact: Sustainability efforts can have a positive impact on the environment and the communities in which a business operates
6. Aligning with climate policies and regulations: Ensuring that your business is proactive is aligning to global and national climate policies and upholds with the regulations

Some case examples on integrating sustainability in their business operations and their benefits:
1)Cost Saving:

One example of a company that has realized significant cost savings through sustainability efforts is Xerox Corporation, a global technology company that provides document management and business process services. Xerox has implemented a range of sustainability initiatives, including energy efficiency improvements, waste reduction efforts, and water conservation measures. These efforts have helped the company save millions of dollars in energy and water costs, while also reducing its greenhouse gas emissions.

For example, Xerox has reduced its energy consumption by more than 30% over the past decade through a combination of energy efficiency measures and the use of renewable energy sources. These efforts have helped the company save more than $100 million in energy costs. Xerox has also implemented water conservation measures that have resulted in a 20% reduction in water usage, saving the company an additional $1 million per year.

In addition to the financial benefits, Xerox’s sustainability efforts have also helped the company improve its reputation and attract new customers. The company has been recognized for its sustainability efforts and has received numerous awards and accolades, including being named to the Dow Jones Sustainability Index for the past 11 years.

2)Improved reputation:
To give a case example of a company that has improved its reputation through sustainability efforts is Patagonia, an outdoor clothing and gear company. Patagonia has a long history of prioritizing sustainability and has implemented a range of initiatives to reduce its environmental impact, including using recycled materials in its products, donating 1% of its sales to environmental causes, and supporting the development of renewable energy sources.

As a result of its sustainability efforts, Patagonia has developed a strong reputation as a socially and environmentally responsible company. This reputation has helped the company attract and retain customers who value sustainability, and has contributed to the company’s overall success.

In addition to attracting new customers, Patagonia’s sustainability efforts have also helped the company retain and motivate its employees. The company’s commitment to sustainability has made it a desirable place to work, and has contributed to its low turnover rate.

Overall, Patagonia’s sustainability efforts have helped the company improve its reputation and differentiate itself from its competitors, while also contributing to its financial success

3)Risk Management:
Walmart, the world’s largest retailer. Walmart has implemented a range of initiatives to reduce its environmental impact, including increasing its use of renewable energy, reducing its greenhouse gas emissions, and supporting sustainable agriculture practices.

By prioritizing sustainability, Walmart has been able to mitigate a range of risks associated with resource scarcity and regulatory changes. For example, the company’s efforts to reduce its energy consumption and greenhouse gas emissions have helped it prepare for potential future regulations on carbon emissions. In addition, Walmart’s support for sustainable agriculture practices has helped it reduce its reliance on a single source of supply and has made it more resilient to disruptions in the global food supply chain.

In addition to managing risks, Walmart’s sustainability efforts have also helped the company save money and improve its reputation. The company has realized significant cost savings through its energy efficiency and waste reduction efforts, and its reputation as a socially and environmentally responsible company has helped it attract and retain customers.

Overall, Walmart’s sustainability efforts have helped the company manage risks, improve its reputation, and contribute to its financial success.

4)Innovation:
An example of a company that has used sustainability as a catalyst for innovation is Interface, a global manufacturer of carpet tiles. Interface has implemented a range of sustainability initiatives, including reducing its greenhouse gas emissions, water consumption, and waste generation. The company has also set an ambitious goal of becoming a “restoration company” by the year 2020, meaning that it will have a net positive impact on the environment.

To achieve this goal, Interface has focused on innovation and has developed a range of products that are made from recycled materials and are designed to be easily recycled at the end of their lifecycle. These products have helped the company reduce its environmental impact and have also helped it differentiate itself from its competitors.

In addition to driving product innovation, Interface’s sustainability efforts have also spurred innovation in its manufacturing processes. The company has implemented a range of sustainability-focused initiatives in its manufacturing facilities, including using renewable energy sources and reducing water consumption. These efforts have helped the company reduce its environmental impact and have also led to cost savings.

Overall, Interface’s sustainability efforts have served as a catalyst for innovation and have helped the company differentiate itself in the marketplace while also reducing its environmental impact.

5) Positive impact on environment and people:
One example of a company that has had a positive impact through sustainability efforts is The Body Shop, a global cosmetics and skin care company. The Body Shop has a long history of prioritizing sustainability and has implemented a range of initiatives to reduce its environmental impact, including using sustainable packaging materials, supporting fair trade practices, and protecting the rights of animals.

Through these efforts, The Body Shop has had a positive impact on the environment and the communities in which it operates. For example, the company’s use of sustainable packaging materials has helped reduce waste and protect natural resources. Its support of fair trade practices has helped improve the lives of small-scale producers in developing countries. And its commitment to animal rights has helped protect the welfare of animals.

In addition to having a positive impact on the environment and communities, The Body Shop’s sustainability efforts have also contributed to its financial success. The company’s reputation as a socially and environmentally responsible company has helped it attract and retain customers, and has also made it a desirable place to work.

Overall, The Body Shop’s sustainability efforts have had a positive impact on the environment and communities, and have also contributed to the company’s financial success.

6)Aligning with climate policies and regulations:
A company that has benefited from aligning its business with climate policy is Iberdrola, a Spanish utility company. Iberdrola has implemented a range of sustainability initiatives, including increasing its use of renewable energy sources and reducing its greenhouse gas emissions.

In 2015, Iberdrola committed to achieving net-zero emissions by 2050, and has since made significant progress towards this goal. The company has invested heavily in renewable energy sources such as wind and solar, and has reduced its carbon dioxide emissions by more than 60% since 2007.

Iberdrola’s efforts to reduce its greenhouse gas emissions have helped the company align its business with climate policies and regulations, which are increasingly focused on reducing carbon emissions. This alignment has helped the company mitigate risks associated with regulatory changes and resource scarcity, and has also helped it attract investment from socially responsible investors.

In addition to these benefits, Iberdrola’s sustainability efforts have also contributed to the company’s financial success. The company’s reputation as a leader in renewable energy has helped it attract new customers and has contributed to its overall growth.

Overall, Iberdrola’s sustainability efforts have helped the company align its business with climate policy, mitigate risks, and contribute to its financial success.

There is no doubt that having a business that is sustainable not just with finance but that is sustainable with it’s resource consumption and reducing it’s environmental impacts is the future of any business. The question you might want to ask is ‘Do you want to be proactive about it and make immediate efforts to be a market leader in building a sustainable business in your industry?’

Check out, www.beyondsustainability.in to take a free consulation on how to integrate sustainability into your business or improve your sustainability journey.