5 Reasons Why You Should Care About Sustainability
This article was originally published at Twistellar.com
“We are running the most dangerous experiment in history right now, which is to see how much carbon dioxide the atmosphere can handle before there is an environmental catastrophe.” — Elon Musk
Despite climate change being a real threat, hanging like a sword of Damocles over humanity, most people and businesses choose to put off their participation in its solution.
Obviously, there are more short-term issues that require our attention: how to keep our businesses thriving in times of economic uncertainty, and AI development, how to win over competitors, how to grow into new markets, the list can go on.
However, if we close our eyes on a problem, it won’t make it go away.
So in this article, we’ll tackle the reasons why your business should consider sustainability and some actionable steps you can take now.
How Does Climate Change Affect Business?
According to Deloitte’s 2021 Climate Check Report, nearly 30% of executives say their organizations already feel the operational impacts of climate-related disasters and more than a quarter are facing a scarcity of resources due to climate change.
Source: Deloitte’s 2021 Climate Check Report
There are different types of business risks connected with climate change:
Physical risks
However irrelevant they may sound, physical risks pose real threats to businesses, with the leisure and agricultural sector being particularly exposed. These risks come from the physical environment such as floods, hurricanes, droughts and wildfires, all of which can cause damage to people, property and transport links.
Regulation and policies risks
Companies must now adhere to stricter environmental standards, such as The Paris Agreement, ensuring that their operations are more sustainable. For example, the energy industry is now to rely on renewable energy sources and net zero carbon emissions. Additionally, the introduction of carbon pricing measures may potentially put the mining industry at financial danger.
Reputation risks
Companies may also face reputational risk as wider society changes its view on ethical business practices.
5 Reasons Why Your Business Should Care About Sustainability
These are five factors why your business should consider sustainability not only to help in solving our common threat, but also improve your business operations:
1. Customers prefer sustainable businesses
According to Deloitte’s Sustainable Consumer research, 85% of consumers in the UK have adopted a more sustainable lifestyle during the Covid-19 pandemic and a third of consumers look for sustainable businesses when buying.
Increased media coverage and public awareness of environmental issues has significantly influenced buying habits. Customers want to make sure their money is going towards companies that are actively making the world a better place.
For example, businesses may focus on developing green products, reducing waste, and transitioning to renewable energy sources.
2. Sustainability can help in reducing costs
By utilizing sustainable practices, organizations can better manage their resources and reduce their emissions, which can lead to lower operating costs.
Additionally, organizations that embrace sustainability can gain access to new markets and customers who are more likely to purchase from socially responsible companies.
Not to mention more investment opportunities since investors now are more likely to support sustainable business practices.
3. Increased employee morale
It’s a common practice now for companies to implement codes of conduct, monitor their environmental impacts and working conditions, adopt standards for environmental and health and safety management systems, and create sustainability reports.
All these regulations make employees choose sustainable companies thanks to such benefits as flexible working hours, paid leave policies, and access to learning and development resources.
Moreover, a common vision shared by the whole team adds more sense to work and boosts morale.
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