5 Reasons Why Companies Should Embrace Sustainability
Jan 6, 2021 Amelia Smerchynsky 5 min read
The deadline for the 2030 goals is quickly approaching. With many different issues arising over the last few months, we are seeing a rise in companies publicly addressing their ESG (Environment, Social and Governance) goals. In the current climate, it has now become the norm to showcase these incentives.
In a Forbes article from 2019, Marguerita Cheng wrote, “Millennials are committed to implementing Sustainable Development Goals (SDGs), including equality, climate change, peace, justice, poverty, and prosperity. They have unique consumption trends that make SDGs goals more attainable. Their tastes and preferences support creating sustainability and equality for all.”
As a millennial, I find myself spending more time researching the company/products I buy to make sure that they align with my beliefs. With millennials being one of the most populous generations, the 2030 goals approaching, and ESG becoming more prominent in everyday life, there is no better time to make the switch to a more sustainable mindset.
If you have been tracking your goals since the beginning or just starting, here are 5 reasons why companies should start embracing sustainability.
With the growing impacts of climate change, people are becoming increasingly more aware of the products they consume. According to the Harvard Business Journal in 2018, “More than 90% of the CPG (Consumer packaged goods) categories, sustainability-marketed products grew faster than their conventional counterparts.” As a society, we are at a critical point where we need to start thinking about what and how we consume. “Consumers are voting with their dollars — against unsustainable brands. The legacy companies that will thrive are those that accept this shift and are willing to pivot”. The idea of the “fast” movement is no longer something we seek. Consumers look for longevity in products and services, and are willing to spend more money if they know they are creating a positive impact.
Who doesn’t love saving money and the planet at the same time? Producers and consumers can find financial assistance in the form of incentives like rebates or tax benefits. Depending on where you are located, you can find what local incentive programs are happening in your area. This allows you to offset the cost of your energy efficient and renewable energy improvements. Below I have linked resources for the United States and Canada to see what programs are found in your area.
Productivity and Reduced Costs
Switching to more sustainable options may cost more upfront, but the long-term savings will be worth the cost. The U.S. Department of Energy estimates that the typical household can save 25% on utility bills with energy efficient measures, which amounts to over $2,200 annually. If a household can save that amount annually, imagine how much money could be saved if large organizations started implementing more energy saving programs! With more efficient machinery and equipment will come an increase of productivity. Once you start saving in one area, you can take those saved funds and move them to another area where they are needed. If you are a big or small business or are just looking at ways you can reduce your costs here is a list of ways you can do so.
Reduce Costs: http://bit.ly/3rWGHcZ
Better Quality Investments
A study done by Morgan Stanley, suggests that the financial trade-offs of sustainable investing, 86% of individual investors believe that corporate ESG practices can potentially lead to higher profitability and may be better long-term investments. Investors globally believe that portfolios integrating ESG are likely to perform just as well, or better than non-ESG integrated portfolios. With companies becoming more transparent and showcasing their progress towards sustainability goals, why not invest in companies that will mutually benefit you in the long run as well as the environment?
Building Relationships with Local Governments and Communities
Staying on-top of current regulations, guidelines and targets allows you to have a better relationship with the local governing bodies. Having that open line of communication can help you to stay on top of these everchanging regulations. Following local guidelines allows you to create a positive impact not only in your organization, but also in the local communities. I have noticed over the last few months that one of the main areas that has been showcased in many sustainability reports is supporting our communities. Especially in this new age of having to stay at home, supporting local is more important than ever.
These are just some of the reasons why companies should embrace sustainability. We are at a critical point in history where everyone is starting to realize that we need to face environmental issues head on before it’s too late. There is no better time to start. Whether you are just beginning your sustainability journey, or you have been working on it since the beginning, a lot can happen in 10 years. As we have noticed how much can change in a few months, anything is possible. This is the time to plan ahead and work towards a better future.
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