Many individuals are becoming more and more concerned about sustainability, since our lives and that of other living organisms on Earth are continually being impacted by climate change. In fact, according to a report by NASA, the chances that human activity is the culprit behind the rising temperatures are over a shocking 95%.
Sustainable business practices are quickly becoming essential for company owners, managers, and administrators. Understanding the problem at hand and how crucial it is to make changes — for the business and the planet — is the first step in making businesses more sustainable.
In this article, we explore the reasons why all businesses, regardless of industry, should embrace corporate sustainability.
What is corporate sustainability?
Before we delve any further, it is imperative to understand what corporate sustainability is. Essentially, corporate sustainability is the practice of making a conscious effort to reduce or eliminate the negative impact a company has on the environment.
An environmentally conscious company goes beyond considering making profits or hitting sales targets – it thinks about its influence on society and the environment. Such a company often pays close attention to environmental, social and governance (ESG) issues.
Why is corporate sustainability important?
1. Drive change and make a difference
Arguably the most important reason why businesses should embrace corporate sustainability is the ability to drive change and make a difference.
Unfortunately, both the quantity and quality of natural resources are quickly declining. In order to maximise the use of natural resources while also enhancing the quality of life, it is crucial for businesses to promote sustainable development through a circular economy.
2. Consumer perception
According to a 2019 survey, 73% of customers worldwide are open to altering their purchasing habits to reduce their negative impact on the environment.
Particularly among millennials, these days, consumers are more prepared to pay more for goods made with sustainable components or from companies that have a strong corporate social responsibility. Moreover, research has found that 76% of people do expect businesses to take action against climate change, and 73% would stop purchasing from a business that does not do so.
Thus, to portray your business in a positive light and attract the growing market who are concerned for the environment, it is vital that your business commits to eco-friendly processes.
3. Increase business efficiency and profit
It has been found that a sustainability strategy can reduce operating costs significantly – by as much as 60%. This is because such go-green efforts can often shape how key resources are used.
Most companies that begin implementing sustainable practices quickly observe a decrease in their energy consumption (check out our article on how to engage employees in these practices). Businesses may reduce expenses, become more energy-efficient, and minimise their carbon footprint by implementing sustainable business practices. Efforts to lessen their environmental effect will not only boost brand reputation but will also pay off financially.
Conclusion
Corporate sustainability is a business strategy that considers how a certain company functions in the ecological, social, and economic settings to create long-term value. The foundation of corporate sustainability is the idea that implementing such techniques promotes business lifespan.
Companies are realising the need to act on corporate sustainability as the demands for it continue to rise. If you are looking for an ESG training course to kickstart your company’s sustainable journey, check out Aventis Learning Group’s 1-Day Starting and Managing Corporate Sustainability & ESG Strategy course. Learn more about why corporate sustainability is so crucial for businesses, how to start, manage or improve your strategy, and more.
Aventis Learning Group is a multi-award-winning corporate training solutions provider that aims to meet the evolving needs of working professionals with our comprehensive range of courses – including IBF funded courses, self-paced e-learning solutions, in-person classes, customised training and even corporate lunch and learn in Singapore.
Contact us today for more information and we’d be happy to assist you in your learning journey.
