There are many businesses that want to get on the path to becoming climate positive but struggle to convince others on the benefits.
The cost of offsetting the emissions for your entire company can be as low as 0.4% of total expenses but understandably, every expense needs to be justified in today’s world.
We go through 4 reasons for how sustainability can actually increase your company’s revenues and lower overall costs making sustainability a more attractive business case.
1. Attract the right talent
Millennials make up 50% of the entire workforce and they want to work for more mission driven, purpose led companies.
According to a study in 2016, 64% of Millennials consider a company’s social and environmental commitments when deciding where to work. This means that if your company’s policies aren’t strong enough, you might be losing out on attracting the best talent.
Worse still, they might be joining a competitor who does.
2. Retain your best performers
83% of Millennials would be more loyal to a company that helps them contribute to social and environmental issues. Having a strong impact on the environment can reduce annual quit rates by 3% resulting in massive decreases on both the time and costs spent on hiring replacements.
3. Boost your revenues and profits
In 2018, Unilever reported that sales of their sustainable brands grew 46% faster than the rest of the business and delivered 70% of its turnover growth.
This data is further backed up by another study by the Harvard Business Review, which shows that “between 2006 and 2010, the top 100 sustainable global companies experienced significantly higher mean sales growth, return on assets, profit before taxation, and cash flows from operations in some sectors compared to control companies.”
Consumer demand for sustainable products and brands is resulting in bottom line increase in revenues.
4. Lower your company expenses
There is a common misconception that sustainability can increase your company’s expenses but this isn’t the case. Even simple energy saving measures like LEDs and renewable energy can drastically reduce emissions and save the company money. Having an environmental programme can save up to 15% of total expenses helping to outweigh any costs that have been incurred.
Taking Marks & Spencers as an example, in 2007 they published their ‘Plan A’ blueprint which required suppliers to embed sustainability into their products. After only two years the programme broke even. Today, it contributes millions in cost savings for the company.
Sustainability can be incredibly beneficial to your company in so many ways. If you want to take the first step on your journey, get in touch with us!