The Business Case For Sustainability - Save Your Business, Save The Planet
“Do you think brands have a responsibility to make positive change in the world?”
This question was put to 2,400 consumers across the UK, US, South Africa and India in a 2019 survey carried out by Futerra consumer research, and a staggering 98% of people said yes. People expect and demand businesses to do more than simply maximise their profits at any cost.
Whilst I understand that there are many challenges, costs, and potential risks associated with transitioning a business to more sustainable practices, I argue that we need to act - and act quickly! - so have written this article to make the business case for sustainability.
We are in peak climate awareness.
Despite the current Coronavirus pandemic and the disruptions caused by the resulting lockdown, the climate crisis is still extremely high on people’s list of concerns. On average, 72% of the global population still agree that, long term, climate change is as a serious a crisis as Covid-19.
I had worried that the most pressing issue of our time, the climate emergency, would take a major back seat and fall out of people's minds during the pandemic. But it seems despite all the heartache and disruption that we are currently feeling, climate change is still seen as a top issue.
This gives me some hope that, as we emerge from the lockdown, we will bring with us a different, more climate-resilient mindset to our approach to our workplaces and everyday life.
People want to live better, we need to help them do that.
And this hope is somewhat justified, as the numbers suggest that 92% of consumers are trying to live more sustainably. This means that there is an incredible opportunity to adapt your business to connect with environmentally-conscious people and position your product/services as the sustainable option.
And globally, 65% of people support a “green economic recovery” from Covid-19. Whilst I still wish this number were higher, it does suggest that people are primed and ready to accept more sustainable products, services, and utilities into their daily lives. And data also suggests that people are, in some part at least, willing to pay more for these options.
People are willing to pay more for sustainability.
Not only does there appear to be great public concern for the environment, it seems that people are willing to change their purchasing habits to reflect this. A 2018 Wunderman Thompson Intelligence report stated that 83% on people will always go for the brand with better sustainability policies, and that 70% of people are willing to pay more for products from an environmentally responsible organisation.
We know that as sustainable business practices increase, ethically-sourced materials are procured, and environmentally-focussed processes are streamlined and normalised, we will see a drop in the price of eco products. I am hopeful for the day that all businesses shift towards this, and sustainable becomes the new normal, but until then it is assumed that most sustainable options will inherently cost a little bit more, but it is encouraging to see that people are saying that they are willing to pay.
Zero waste and eco products - the demand is growing.
Of course we must consider all demographics and not isolate or exclude those on the lower economic rung - we cannot expect those who are struggling to get to the end of the month to be too concerned about “the end of the world”. Which is why I often talk about normalising sustainable business practices so we shift not only the mindset, but actual industry practices in order to make sustainability affordable and not only a middle-class endeavour.
There’s a great opportunity to position ourselves for sustainability success.
I mentioned earlier that over 90% of people are trying to live more sustainably, and this is reflected in the fact that 88% of consumers want brands to help them on this journey to become more environmentally friendly. People know that their purchasing power can influence the market, as businesses respond to demand, and with so many people expecting brands to help them live the way they want to it is interesting to see that less than 20% of this audience think companies are doing enough.
So that gulf between people trying to live more sustainably - those who want brands to help them achieve this - and the perception that these companies are actually helping them achieve this, is huge… and this indicates a great opportunity for ethical businesses to fill this gap, position themselves as the sustainable option, control that portion of the market and make a great positive impact!
I’d like make an important note at this point: we cannot shop ourselves out of the climate crisis, even under a model of a “more sustainable mass consumption” - we need to recognise that the mindset of continual growth is one of the core roots of this problem! But that’s a topic for another article. However, I recognise that trade, commerce, and enterprise is key to a functioning global society but if we are to continue producing products and delivering services we absolutely must change how we operate.
Sustainable businesses attract and retain top talent.
I exist in the digital agency world, and one of the biggest challenges facing this industry is finding and keeping good staff. I’ve been on both sides of the interview table and I know how difficult it is to find the right person for the right job, at the right time. I am sure this challenge resonates with all industries and job types, particularly during times of uncertainty.
Gone are the days of salary being the deciding factor in an employees decision to join or stay at a company, and superficial perks like Casual Fridays and Pizza Days no longer cut the mustard. The current workforce is far more environmentally-minded and ethically-driven than previous generations, with 40% of millennials saying they have taken a job because of their sustainability policy, and 70% say they will stay in a company because of a good sustainability strategy.
This trend of eco-minded people (both within the workforce and as potential customers) is only set to increase. As people seek out more purpose in life, we need to respond and adapt to this, or risk being left behind!
“Businesses that fail to respond to climate change will go bankrupt without question.”
Not only is there is risk of losing your talented staff and struggling to grow a dynamic team, but you risk being perceived as uncaring about climate in the eyes of your customers. And you may also risk losing trust in investors and others who support the financial security of your business if you fail to demonstrate that you have a long-term environmental plan.
Good for business, good for the planet.
So, it’s in all our interests to reflect on our business practices, ask ourselves some difficult questions to discover if we are really part the solution to climate change… or part of the problem.
We must quickly adapt and shift toward a sustainable model so you can not only save your business, but do your part in saving the planet.
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