Why Going Green Is Best for Business
In recent years, many companies have turned their attention to becoming greener and more environmentally friendly. But when the pandemic hit, companies shifted their focus from initiatives, choosing to prioritize recovering their losses and staying afloat. However, dropping their environmental goals to protect their growth can be seen as short-sighted.
According to research data collected from more than 35 countries, businesses, on average, perform better when using green practices for several reasons. And while it may be difficult for some to make the changes needed to see this increase in performance, companies like Australia’s Signet understand the importance of remaining committed to their eco-friendly businesses.
Tapping Emerging Niche Markets
A company can open itself to untapped niche markets and emerging trends by offering new green products and services, which is a great way to distinguish the company from competitors. this. In some cases, companies committed to reducing their carbon footprint and increasing their green initiatives have received millions of investments during the pandemic when most others are struggling to open their doors. And as the world continues to struggle post-pandemic, these investments have been invaluable.
D’light, a company dedicated to lighting solutions for those without access to any electricity, has helped more than 100 million people in 70 countries with their green products, simultaneously gaining US$ 197 million investment. In addition, the Danish energy supplier, Ørsted, was named the most sustainable company in the world. Their success comes from transforming their own suppliers into green energy, and as a result, they see accelerated profits on their books.
Catering to niche markets makes businesses leaders in their sectors, allowing them to rapidly expand into international markets. And while such environments may only be realistic for some, it is possible to re-examine work practices and processes to make them easier.
More Efficiency
By making processes greener, companies can benefit from efficiency gains in the form of lower energy costs, securing green tax credits, and improving overall operational efficiency, in to name a few. In addition, these types of profits directly lead to commercial benefits. This can be as simple as printing fewer documents, reducing electricity use in offices, and using reusable or refillable items whenever possible.
In the UK, 78% of businesses that invest in green technology benefit greatly. And for large companies, like Procter & Gamble, this can translate into billions. At the other end of the spectrum, however, those responsible for environmental damage must be prepared to deal with ever-increasing costs and negative impacts within their business.
Improved Employee Motivation
As eco-friendly business practices become the way of the future, job seekers are showing more interest and desire to work for companies committed to this cause. It is a common belief that if an employer takes care of the environment and sustainability, they will take care of their employees, which ultimately leads to higher job satisfaction.
These work environments facilitate an increased sense of purpose, which in turn, makes work feel more meaningful. In addition, a recent poll showed that millennials and Gen Z have a higher level of concern for the environment. And considering that these are the generations that are currently entering the job market, it makes more sense to take this into consideration.
By some estimates, there could be as much as a 16% increase in employee productivity in companies that follow greener paths.
More Engagement
Almost all consumers are concerned about at least one environmental issue, with about half going as far as boycotting companies they consider harmful. Finally, they want to make more responsible purchases, which should be seen as an opportunity, not an obstacle. Making it easy for people to access clear information on recycling and packaging sustainability can help them make better choices and build loyalty to certain brands.
With many customers, green initiatives are attractive to stakeholders and investors. According to research focusing on American companies from 1993-2009, those with high sustainability have better stock market performances, leading to more profitable investments. In addition, investors are beginning to expect more about these practices, which is reflected in the increase in global sustainability investments to US $ 30.7 trillion in April 2019.
Polysolar, which specializes in glazed windows that generate electricity, has raised more than double the amount of its investment through crowdfunding alone. Likewise, Unilever, which has tried to correct a bad history of exploitation, has already received more engagement and loyalty thanks to the changes it has made.
Going green is not a simple process or a quick fix. Business spheres are different and require different methods to achieve a more eco-friendly effect. It takes effort and commitment to sustain businesses and consumers. But, no matter which side of the spectrum you fall on, this is the future of the global industry. To be connected and supported, making the necessary changes as early as possible is essential to set companies on steady paths moving forward.
