Sustainability trending with business growth
Sustainability has built up momentum over the past several decades. What some people thought would be a buzzword came to be a new perspective and way of thinking. It now incorporates all industries and businesses. Building sustainability into the brand doesn't only help the environment, but it also helps businesses that want to cultivate company longevity.
Environmental, social and governance (ESG) metrics and their impact
Typically, government bodies and interested investors look at a company's ESG or Environmental, Social, and Governance metrics. These metrics help to demonstrate how far along a company has advanced with its sustainability measures. Each letter stands for a different metric as sustainability is no longer only focused on environmental concerns but also on how it impacts social and governance matters. Modern sustainability means promoting the health of the environment, the health of the local community, and bringing economic profit back into the sector.
Research done by McKinsey and Company promotes companies having a higher ESG rating as it has shown to mean a lower cost of equity and debt. These initiatives foster the health and wellness of the company's community while still improving a business's financial performance, meaning a win-win situation for everyone.
Improve brand image = improve the environment
It goes without saying that a company's brand image pulls out your audience, allowing you to have more of a targeted reach to the people that will lead to conversion and profit. Using and promoting your sustainability initiatives to your customer base improves your brand image while simultaneously improving the environment and the communities the company works in.
Attracts customers and new Talent
According to a survey done by IBM, almost six out of ten consumers are willing to alter their shopping habits to reduce the environmental impact of their purchases and almost eight out of ten indicated that sustainability is essential. Consumers might drive the change, but it is ultimately up to the company to make it, thereby attracting more of those willing to convert to more sustainably focused brands.
Improved financial performance
Ultimately, without increased financial performance, most companies wouldn't be interested in promoting sustainable initiatives. As the interest and research around them have increased, promoting and sustaining these initiatives has become more affordable. Since these sustainable production methods or support have become more affordable, the benefits often outweigh the financial siphons.
Increased investment interest
Sustainable strategies are necessary to cultivate a competitive edge, as seen by 62% of company executives. That competition isn't just for a consumer base but for investment interest. Sustainability isn't going away, and many investors consider it the route of the future. Jumping on it now and implementing those ESG initiatives is an excellent way to attract more investment interest.
Building a successful company often involves keeping one eye on the present functions and another on future possibilities. Modern sustainable enterprises have been proven to lead to business growth in more ways than one. What is stopping you from going green?