According to a United National Global Compact Accenture Industry Study, 93 percent of industry CEOs believe that sustainability issues will be critical to the future success of their business. That study highlights the fact that sustainable businesses are becoming the new reality. We will now focus on four reasons why sustainability is so important for your business.
Good for the Environment
Sustainable businesses are good for the environment. Because of this fact your company should be concerned about sustainability strictly for ethical reasons. Caring about our planet should be enough motivation to adopt sustainable business practices.
Cuts Down on Energy and Waste Costs
According to an Ernst & Young study, “Six Growing Trends in Corporate Sustainability,” cost reduction was cited by 74% of the respondents as the principal driver of their company’s sustainability agenda. Sustainable businesses are able to cut down on energy and waste costs, which will in turn have a positive impact on the bottom line.
Helps Attract and Motivate Employees
The sustainability of your business practices can help with recruiting. While the minority of potential employees who don’t care about sustainability won’t care either way, the rest may – and it could be the tie-breaker that helps them choose to work with your organization. Sustainability can also help motivate your existing employees. In connection with this according to a nationwide study “What Workers Want in 2012,” conducted by Rutgers University and funded by The John and Catherine T. MacArthur Foundation, “Employees who feel they can make an impact on social and environmental issues while on the job are twice as satisfied with work as those who don’t.” Happy employees are productive employees. Happy employees are also more likely to stick around which will help increase your company’s retention rate.
Good for Your Reputation
Clients and investors are drawn to sustainable businesses. We already previously made reference to the 2011 Ernst and Young Study. In that study, 68% of all respondents felt that stakeholder expectation was an important factor in their company’s sustainability agenda. This is also highlighted by the following statement made in 2012 by Mary Wenzel, Director of Environmental Affairs: “Over 80 percent of our customers said it was important to them that we have an environmental commitment.”
That good reputation can also spread throughout the communities where your business locations are based. This could also potentially lead to positive media exposure. Since sustainability is the new reality, you can’t afford to overlook sustainable business practices.