As well as helping to combat the effects of climate change, there are several economic benefits for businesses to go green. In an article, an environmental, social, and governance (ESG) strategy by Renegade Plastics helps companies to:
- mitigate risks
- create profitable growth through investments in sustainable innovation
- attract qualified employees; and
- create more effective marketing campaigns
Let’s take a closer look at the business benefits of sustainability
Reduced Operating Costs
Reducing energy consumption and finding ways to be more environmentally friendly can help your business reduce monthly overhead. The City of Seattle has made $2 million in fuel savings and reduced carbon emissions through electric vehicles, telematics, and sustainable fleet management practices.
- From utilities to office supplies, there are plenty of ways to save money
- Replace incandescent bulbs with long-life LEDs
- Use energy-efficient appliances and repair plumbing to reduce water consumption
- Buy from local suppliers to reduce shipping costs
- Eliminate paper printing and go digital
- Host online meetings and training to eliminate travel costs
- Switch to low- or zero-emission vehicles
Be Eligible For Tax Incentives
Depending on your area, there may be tax incentives or rebates for energy-efficient upgrades and to eliminate toxic plastics. You can also find incentives or loans for using alternative vehicles or renewable energy like wind or solar power. Additionally, you can seek funding for energy reduction or clean technology research and development.
Customers want and demand green products and services.
A global consumer confidence survey found that 81% of respondents felt it was “extremely or very important for businesses to implement programs to improve the environment.” The sentiment hit all age groups, from Gen Z (15-20) to those over 65.
72% of consumers think about their environmental footprint, and 79% change their consumption habits based on “the social responsibility, inclusivity or environmental impact of their purchases,” according to the Capgemini Research Institute.
The demand for greener options need not be seen as a business challenge to be solved independently. Creating a sustainability strategy is an opportunity to enhance your brand and build customer loyalty simultaneously.
Increase Employee Satisfaction
People are looking for new jobs to earn a living and grow personally. Harvard Business School Online notes that working toward sustainability as a “common goal” can promote employee satisfaction. An eco-balance can even increase employee productivity. If your company has a strong sustainability mission, it can become an attractive selling point for job seekers.
The research also highlights the link between corporate sustainability and financial performance. A meta-study from the University of Oxford and Arabesque Partners showed that companies with strong sustainability practices had better operational performance and positively impacted share prices. Learn more about corporate social responsibility at Geotab and our fleet sustainability solutions for businesses, including electric vehicle suitability assessment and fleet management.