5 ways businesses can benefit from being environmentally sustainable

As companies compete for resources, coming out ahead in terms of profits sometimes seems synonymous with draining our planet of natural resources. This is a misguided view. Although environmental concerns in business have only been thrust into the spotlight this century, they have always come hand in hand with environmental sustainability. 

1) Leveraging renewable energy can reduce energy costs

Implementing environmentally sustainable practices in your business operations often includes using renewable energy sources. This may reduce energy costs, and profits depend on costs and revenue. For example, using solar energy to power some of your office facilities reduces your electricity bill. There will be an initial capital investment needed to incorporate a new energy infrastructure, but this will result in long-term savings. Walmart enjoyed electricity cost savings of up to 30% in their California locations when these locations switched to renewable energy. 

2) Sourcing from local suppliers reduces shipping costs and emissions

Sourcing from local suppliers is another sustainability measure that can reduce your costs. By reducing your reliance on distant suppliers, you reduce the carbon emissions you generate from shipping and transport, as well as the cost of transporting raw materials and finished products. 

3) Environmentally sustainable business practices are critical in ensuring business longevity and long-term profits

Environmental sustainability also plays an important role in business longevity and long-term profits. With a clear understanding that the world is not ours to exploit for profit, but rather a living ecosystem which we all cohabitate and which we wish to cherish and preserve for future generations, we will naturally make decisions consistent with this view. By relying on energy sources and raw materials that are renewable and sustainable, businesses can build a sustainable production line atop a stable supply chain. 

4) Investors and talent favour companies that practice environmental sustainability

Having environmentally sustainable business practices will help you attract investors and talent alike.

Furthermore, environmental sustainability makes a business attractive to investors and talent. Investors are shown to favour companies with CSR programs in place, and that are committed to healing the earth. Meanwhile, there is strong evidence that the growing pool of millennial human resources show a preference for joining companies that have environmental sustainability initiatives in place. 

5) Numerous regulatory benefits are in place to support companies in their environmental goals
Being environmentally sustainable is encouraged more and more by governments and could set you up for a host of regulatory benefits. Many governments lend support to companies that go green through measures such as grants for environmental start ups. In Singapore, the Sustainable Bond Grant Scheme currently funds up to $100,000 per issuance of expenses attributable to obtaining an external review for green bonds. While our main motivation to switch to environmentally friendly practices should not be money, there are also hefty taxes on companies that leave a huge carbon footprint. In the UK, carbon emissions exceeding the company's annual allowance are taxed at a rate of £16 per tonne. 

A decision to trade the environment for profits is irreversible. Photo credits: Alexandre Magnin via Sustainabilityillustrated.com

As much as businesses are often tempted by short term profits,  any road apparently gained by snubbing environmental sustainability for profits will ultimately be seen to have been lost and completely invaluable.  Environmental sustainability and sustainable profits go hand-in-hand. Money cannot buy back our earth.

If you are interested in going beyond environmental sustainability and making compassion for the earth part of your corporate culture, this mobile app is for you. Get in touch with us to learn more.