Driving Value Through Sustainability: How Can You Boost Profit while Saving the Planet?
As crucial decarbonisation deadlines such as the Paris Agreement (calling for Net Zero by 2050) become increasingly closer, integrating sustainability strategies into your business are no longer a nice-to-have, but an essential factor for attracting modern investors.
In a ‘Sustainable Signals’ report by the Morgan Stanley Institute for Sustainable Investing, 77% of investors expressed a preference for companies that balance financial performance with social and environmental responsibility. Furthermore, nearly 80% of global investors consider a company’s environmental metrics, such as carbon footprint and greenhouse gas reductions, when making investment decisions.
To stand out, your organisation should not only measure its environmental impact but also transparently report on how it integrates sustainability into business operations. Greenwashing or vague ESG claims will quickly dissuade investors, so it is important to ensure your data is credible and trustworthy. In this article, we will discuss the significance of integrating robust sustainability strategies into your business plan, and how to ensure this robustly across three Cs: Compliance, Cost, and Credibility.
Compliance: Strengthening Your Reputation Through Regulation
One of the clearest ways to demonstrate to a stakeholder, client, or potential investor that your organisation prioritises sustainability and is dedicated to decarbonising your operations is by certifying with a well-regarded sustainability standard. The ISO 14001, for example, displays an integration of robust environmental management structures, while the B Corp Certification assesses a business’ entire social and ethical principles.
Being equipped with certifications is a proven way of strengthening your organisation’s reputation, and ensuring that you stand out as a trustworthy, environmentally focused business to potential investors. All of this improves the chances of your business securing funding, grants, or investment from those with similarly sustainability-forward principles which, as we outlined in the introduction, are becoming increasingly prevalent.
As such, it is important to seek out these standards early, especially as many promote principles and processes which overlap with governmental legislation and regulation, thus improving your chances of assimilating with upcoming policies and avoiding the financial and reputational penalties which come with non-compliance. While it is often thought to be easier for larger corporations with greater resource to achieve these certifications, this is not always the case, and small or early-stage companies can still make meaningful progress. There are many schemes which offer scalable requirements in order to make such systems more accessible without impactful costs.
Cost: Creating Value Through Your Values
Not only do such certifications increase the likelihood of your business creating financial opportunities through investment, funding, and grants, but integrating sustainability strategies and principles into your company also unlocks more value through cost-saving within the company and greater revenue from your target audience.
By reducing energy consumption, waste, and resource inefficiency, research suggests that companies can decrease operating costs and increase operational profits by up to 60%. For example, switching to LED lighting can reduce energy consumption by up to 80%, which is further compounded by recycling and cuts to waste disposal.
Such practices also lead to a reduction in recruitment costs, given research that nearly 1 in 2 people want their company to incorporate ESG commitments, and 1 in 3 aged 18-24 admitted to rejecting a job offer when they found the potential employer to be lacking. Furthermore, employees already enrolled at a company are more likely to be engaged and productive when their employer promotes sustainable values.
Credibility: Enhancing Trust Through Transparency
All of this is enhanced by integrating proper tracking and reporting processes into your organisation, to ensure you understand your own sustainability practices to improve trust from outside and decision-making from within. In edenseven’s 2024 FTSE250 report, they uncovered that 74 out of 250 companies were not properly reporting their Scope 1 and 2 emissions, while 20% were not reporting Scope 3.
What this means for such businesses is not only damage to all of the benefits and positive impacts created by sustainability strategies described thus far, such as reputation, trust, and credibility with stakeholders, consumers, and investors, but it also means a barrier to all of the organisational growth promised by clear tracking.
The importance of tacking comes down to decision-making. Equipped with holistic oversight of its own sustainability progress and practices, a business can ascertain how to improve and accelerate such results and consequently amplify the benefits outlined in this article. This also allows it to benchmark its progress and compare against other companies to understand how much impact it is making in a wider arena.
To this end, reporting not only enhances transparency, but also visibility. Research suggests that 62% of Gen Z shoppers prefer to buy from sustainable brands, while 72% are willing to pay more for sustainable products, resulting in an increase in revenue of up to 20% on average. This in turn increases the likelihood of retrieving funding from investors by proving that there is more financial benefit for them.
Conclusion
As we have outlined in this article, implementing sustainability practices and processes into your organisation, from securing recognised standards, to operational and behavioural changes, and proper tracking and reporting mechanisms, has grown from a box-ticking exercise to a way of initiating valuable transformation for your organisation. Not only does prioritising environmental directives bring positive impact to your surroundings, but it also grows numerous opportunities and benefits within your business, particularly when it comes to profit. As such, it is important to make sustainable investment early in order to see this returned from your stakeholders, consumers, and potential investors.
If you are looking to maximise the value of your organisation, reach out to one of our sustainability experts to learn more about how you can accelerate this through environmental motivations. Our sister-company,
edenseven, provides a complete, cost-effective sustainability solution to ensure credibility with stakeholders and compliance with regulations.
Contact Form
Subscribe to our Newsletter
Blog Subscribe
SHARE CONTENT
