The Benefits of Making Your Business Sustainable
This week is the second week of the 2021 United Nations Climate Change Conference, known as COP26, where UK leaders are working with other nations to reach an agreement on how to tackle climate change.
Environmental awareness can contribute to your company, customers, and employees in a big way, no matter if you are running a small or a multi-millionaire business, we are all responsible for the sustainability of our planet.
Sustainability has become a crucial aspect of modern companies that’s on par with business and marketing strategies. Although going green isn't directly profitable in the traditional sense, it can significantly impact your business in many ways, including the financials.
The negative ecological impact is a major risk in capitalist societies and its growing range is apparent from the beginning of the Industrial age up until modern times. And as awareness of the critical issues spreads, much attention is given to sustainable businesses, affecting customer's spending habits, investments, and the workforce.
With this ongoing shift in the public consciousness, making your company ecologically responsible has become a palpable economic factor.
In this article, we'll explain the largest benefits that sustainability can bring to your business.
Benefit Number 1: Energy Efficiency and Productivity Increase
Resource conservation can contribute to a decrease in costs and better work efficiency. If your company pays attention to how it uses electrical energy, water, and other resources, it could allow you to save a staggering amount of money.
For instance, if you are working from home or back in the office, switching your light bulbs from halogen to LED bulbs could save you extra money, as LED light bulbs are vastly superior to halogen, lasting over ten times longer (meaning that they also save on material and production costs) while consuming 85% less electricity. Adding to that, LEDs don’t contain any toxic compounds or elements like mercury. They are also 100% recyclable; using LED lights will help you to reduce your carbon footprint by a third.
While investing funds in energy-efficient utilities, insulation, and similar upgrades can be initially costly, it will prove profitable in the long run.
Also, ensuring you're not wasting resources can bring your business a productivity boost that will justify the initial inconvenience.
Benefit Number 2: Better Brand Image
More and more customers consider a company’s environmental impact when deciding on purchasing a product or service. That’s why businesses that focus on sustainability have a considerable advantage in the marketplace. According to a survey conducted by Deloitte in March 2021, 28% of all UK consumers (nearly, 1 in 3) had stopped purchasing certain brands or products because they had ethical or sustainability related concerns about them and 34% had chosen brands that have environmentally sustainable practices/values.
In a competitive environment where numerous companies cater to the same niche, your brand image can make all the difference.
This makes investing in promoting environmental and social values a smart business move and you can include your sustainability efforts into a business strategy.
Benefit Number 3: Attracting New Investors
Since environmental awareness is a relevant and widely popular subject, many investors are looking to associate themselves with responsible companies that nurture their positive image.
Poor ecological practices have a negative public impact not only on customers but also investors. As investors recognize the scope of that impact, they gravitate more and more to environmentally-responsible businesses.
Benefit Number 4: Recruitment and Retention of New Employees
Like customers, many employees scrutinize a company based on its environmental impact and ecological awareness when considering job applications.
According to an article published by Forbes, 79% of millennial employees are loyal to companies that care about their effect on society. The companies that people work for will influence their and their families’ lives the same way as it affects the rest of the community. That’s why new employees are more likely to accept a position at an eco-friendly company if given a choice.
Several surveys show that sustainable businesses attract about half as many new employees and retain over a third more than those not concerned with environmental issues.
From My Business to Your Business
At Grace Certified Accountants, we are working towards becoming an even more sustainable business by;
- using e-signature facilities to reduce paper, ink, and energy wastage,
- cloud software to share and save documents (being aware of the digital footprint)
- Online meetings to meet new and existing clients saving on fuel, time, and CO2 emissions
- Cloud accounting software to raise, send and invoices/payslips (no more using a shoe box for storage) reducing paper, ink, and energy wastage.
It isn't hard to predict how sustainability will grow in importance in the business world as public attention turns more and more towards solving ecological challenges.
Even without regard to the current social climate, the future market might favour sustainable companies to such an extent that improving on those aspects now may turn out to be the best investment imaginable.
What is your business doing to encourage sustainability?
You're very welcome to get in touch with me at Grace Certified Accountants if you have any questions. Book a Free Call directly into my diary HERE.
Director & Managing Partner
Grace Certified Accountants
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