When sustainability and business collide. Why sustainable businesses should be a standard.
You should always look for companies that are dedicated to sustainability. Sustainable business practices should be a standard in the company's mission statement, with the company taking responsibility for their global footprint and understanding the challenges they face on a daily basis.
More and more businesses are realizing that in order to be successful in the long term, they need to adopt sustainable practices. But what does it mean for a company to be sustainable, and why is it so important?
In this article, we'll explore those questions and more, and we'll also look at some of the challenges companies face when trying to operate sustainably.
What role does sustainability play?
The term "sustainability" is often used interchangeably with "environmentalism," but it's important to remember that sustainability encompasses much more than just conservation and protecting the planet. Sustainability is about meeting the needs of the present generation without compromising the ability of future generations to meet their own needs.
This means that sustainability must be considered in all aspects of business, from product development to marketing to employee relations. And it's not just about being "green" or making token gestures; sustainable businesses are profitable businesses, and they can create a more sustainable world for everyone - not just for future generations, but for the people who work for and do business with them today.
What are the advantages of investing company profits into eco-friendly endeavours?
There are many reasons why sustainable businesses should be a standard in the corporate world. For one, sustainable businesses are more resilient in the face of change. They're better at anticipating and responding to challenges such as climate change, resource scarcity, and changing consumer preferences.
Sustainable businesses are also more profitable in the long term. A study by The Economist showed that sustainable companies outperform their counterparts over time, and they're also less volatile and more likely to weather economic downturns.
In addition, sustainable businesses have a positive social and environmental impact. They create jobs in local communities, use fewer natural resources, and produce less waste. And research shows that consumers are increasingly interested in supporting companies that have a positive social and environmental impact.
The challenges of operating sustainably
Of course, no company is perfect, and there are always going to be challenges when it comes to sustainability. One of the biggest challenges is measuring progress. Sustainability is often seen as an intangible goal, and it can be difficult to set concrete targets or benchmarks.
Another challenge is dealing with resistance from employees or shareholders who may not see the value in sustainable practices. It can be difficult to convince people to change the way they've been doing things for years, but it's important to remember that sustainable businesses are more profitable in the long term.
Finally, another challenge is finding the right balance between making a profit and having a positive social and environmental impact. It's not always easy to do well by doing good, but sustainable businesses are up for the challenge.
So why should your company be one of them? Sustainability is no longer an option - it's essential for long-term success.
How can business' make the switch?
One of the advantages of being a sustainable business is that you have a positive social and environmental impact. This can be something that you showcase to your customers, and it's also important for your employees.
Many companies are now realizing the importance of having an ESG statement. This is a document that outlines your company's policies and practices when it comes to social and environmental responsibility. It's a great way to show your customers and employees that you're committed to sustainability.
You can also promote sustainability through your marketing efforts. Talk about the products and services that you offer that are environmentally friendly, and highlight your company's green initiatives. You can also get creative with your marketing and find ways to engage your customers in sustainability.
It's also important to have a sustainable workplace. This means implementing policies and practices that reduce your environmental impact, such as using recycled materials, composting, and reducing energy consumption. You can also encourage employees to walk or bike to work, or carpool when possible.
A renewed interest in renewables.
There are many advantages to using renewable energy to power a company. Here are just a few:
Renewable energy is environmentally friendly and sustainable. It doesn't produce the harmful emissions that traditional fossil fuels do, and it doesn't rely on finite resources like oil or coal.
Renewable energy is affordable and reliable. Unlike fossil fuels, renewable energy sources are free once you've installed the equipment. Variable output is possible, but it is a myth that renewables are less reliable than non-renewables. Nuclear plant interruptions have become seven times more frequent in the past decade due to climate-related factors.[2] This is why grids like Germany's that is supplied by more than 50% renewables are rated as one of the most reliable globally.[3]
Renewable energy creates jobs and supports local economies. Renewable energy projects typically create more jobs than traditional fossil fuel projects, and they help stimulate the local economy by sourcing materials and services from local businesses.
Renewable energy is scalable. You can start small with a few solar panels or wind turbines, and then gradually expand your system as your needs grow.
Renewable energy is flexible. There are many different types of renewable energy sources, so you can choose the one that makes the most sense for your company.
Making the switch to renewable energy is a smart business decision, and it's something that more and more companies are doing every day.
Why do companies fail to meet their environmental goals?
Many businesses fall short of their environmental commitments, often due to a lack of awareness or understanding of the benefits of sustainability. Other businesses may be interested in sustainability but find it difficult to make the switch due to financial or logistical constraints. Regardless of your company's reasons for not implementing sustainability initiatives, there are a number of advantages to making the switch as outlined above.
The urgency of climate change is becoming more and more evident, and it's having a serious impact on business viability. Climate change is already causing extreme weather conditions and natural disasters, which are costing businesses billions of dollars in damages and having ripple effects on the supply chain. In addition, climate change is affecting consumer behavior and causing a shift in demand for certain products. As a result, businesses that don't adopt sustainability policies and practices are at a significant disadvantage.
Many businesses are making the switch to sustainable practices in their supply chains. One example is Walmart, which has pledged to reduce emissions by 35% by 2025 and zero emissions by 2040. As part of this commitment, Walmart is working with its suppliers to reduce emissions and increase renewable energy use. For example, Walmart has partnered with its supplier Schneider Electric to "...democratize access to renewable energy and accelerate its use with our supplier base" according to their Senior Director of Sustainability.
Be wary of greenwashing.
It's important to be aware of greenwashing, which is when a company promotes itself as being environmentally friendly when it's not. Sometimes businesses will make false or misleading claims about their sustainability initiatives in order to make themselves look more appealing to consumers. It's important to do your research and make sure that a company is actually following through with its sustainability commitments.
Volkswagen. In the most famous example, the auto-maker was cheating on vehicle emissions tests. Signals would be sent when the vehicle was undergoing an emissions test and the vehicle would alter its performance and lower emissions only for the duration of the test before returning to normal. Their normal produced up to 40 times the allowed limit for nitrogen oxide.
Coca-Cola. Their bottles are ubiquitous with plastic-strewn beaches, no surprise as they have long been known as the world's number one plastic polluter. Their greenwashing efforts have found them embroiled in a lawsuit filed by Earth Island Institute.
H&M, Uniqlo, Zara. These brands are known as fast-fashion, with rapid turnover and high volumes of textiles produced each season. H&M's 100% 'organic' cotton was found to be recycled polyester and only 20% was actually organic cotton.
This is why B Corp status is a means to avoid company's that greenwash.
A growing number of businesses are choosing to become certified as B Corporations. What is a B Corporation?
B Corporations are businesses that have been certified by the nonprofit organization B Lab to meet rigorous standards of social and environmental performance, accountability, and transparency. To become certified, a company must pass a comprehensive assessment of its social and environmental performance.
B Lab is a nonprofit organization that promotes sustainable business practices and provides resources and support to B Corporations.
At the time of this posting, there are now close to 5,000 certified B Corporations from over 79 countries, and they represent a wide range of industries. Some notable examples include Patagonia, Ben & Jerry's, Warby Parker, and Seventh Generation.
When it comes to sustainability, there are a lot of misconceptions out there. Some people believe that sustainability is too expensive or that it's difficult to implement. Others may think that sustainability is only relevant for certain types of businesses.
In this article, we've outlined some of the many benefits of sustainable business practices. Making the switch to sustainable practices can improve your company's bottom line, help you reduce your environmental impact, and make you more competitive in the marketplace.
Sustainability is no longer a luxury – it's a necessity. By making the switch to renewable energy and sustainable practices, businesses can improve their bottom line while also reducing their environmental impact. Isn't it time your business made the switch?
References
Ollagnier, Jean-Marc. “The European Double up: A Twin Strategy That Will Strengthen Competitiveness.” Accenture, Accenture, 22 Jan. 2021, https://www.accenture.com/_acnmedia/PDF-144/Accenture-The-European-Double-Up.pdf.
Ahmad, Ali. "Increase in frequency of nuclear power outages due to changing climate." Nature Energy 6.7 (2021): 755-762.