Companies increasingly believe that addressing environmental sustainability is a strategic and integral business imperative. Employees are calling for action. The expectation that companies commit to environmental sustainability is growing, and that’s not going to change. Millennials are particularly vocal about this matter, and by 2025, they will be 75% of the workforce.
Regulations make us more creative. This can be expanded to further down the value chain in terms of how services are delivered, or processes are executed. Creative thinking beyond initial requirements generates more ideas and more opportunities to find points of improvement. And, once companies have begun the process of looking for improvements, they start seeing opportunities for improvement everywhere which could lead to the discovery of new markets or new value application.
The supply chain is where the ROI on sustainability gets real (vendors consume as much as 80% of the resources used by a supply chain)-- in the triple digits according to research. It's also what separates “real” sustainability from “green washing.” That's why many businesses and NGOs are looking at how to make the value chain (supply chain, distributors, partner organizations, etc.) more sustainable.
Sustainability today is not about greenwashing for most corporations; instead, it’s about managing risk. The underlying catalyst fuelling many sustainability initiatives is the need to mitigate reputational and operational risks.
The fewer resources you use, the more money you can save. Most of your savings will come from finding ways to reduce your water usage, your energy usage (includes electricity, gas and fuel), which means cutting carbon dioxide and greenhouse emissions, and your waste which means recycling and using less materials.
Corporations that are actively managing and planning for climate change secure an 18% higher return on investment (ROI) than companies that aren’t – and 67% higher than companies who refuse to disclose their emissions.
A leading brand translates to customers what is relevant in today’s world, influencing buying behaviour. In other words, a brand creates value in two ways: generating demand and reducing risk and securing future earnings for the business. Brands enter the debate right about here. I believe we all understand what improving the brand means for profit, attracting talents, revenue generation etc etc.
Firstly, why is talent important? Well, superior talent is up to eight times more productive, the best workers simply do the best and the most work. When it comes to the all-important question of how to inspire millennials (75% of the workforce by 2025), organizations that focus on sustainability put themselves in a better position to attract and retain millennial employees.
