In addition to addressing global issues like climate change and inequality, sustainability drives business success in several ways.
Increases the possibility of investment
Investors often use environmental, social and governance (ESG) metrics to determine a company’s impact. They will use this information to decide whether or not to invest, and are more likely to support a brand with a lower carbon footprint.
Improve financial performance
McKinsey research shows that companies with a high ESG rating are more likely to have a lower cost of debt. They also found that brands with effective sustainability initiatives have better financial performance.
Meets customer expectations
Consumers expect brands to be sustainable, and are willing to pay more for it. Up to 60% of consumers are willing to spend 10% more on more sustainable products.
Gain a competitive advantage
Meeting customer demands and demonstrating your understanding of current global concerns will give you a competitive advantage over brands that continue to operate as if nothing is happening.
Reduce costs
Working towards a more sustainable future can canadian consumer email lists save you money. Around 33% of companies that integrate a sustainability strategy to improve their efficiency manage to reduce costs and can increase their profits by up to 60%.
How to create a sustainable business model
Evaluate the problem (or problems)
Define the objectives of your sustainability plan
Outline your sustainable business strategy
Implement your sustainable practices
Evaluate your results
1. Evaluate the problem (or problems)
The first step to becoming more sustainable is to figure out what issues you face. What matters in one industry may not be relevant in another, so it’s critical to examine the key sustainability issues that span your team, company, customers, and industry.
Determine what each of these groups considers a priority: is it reducing your carbon footprint or providing opportunities to marginalized communities around the world?
Here are some sample questions you can ask each group to determine what is most important:
What impact does the business have on the local community?
How much waste are we generating?
What is our corporate culture like?
Does our hiring process attract diverse candidates?
How are we minimizing our impact on the planet?
2. Define the objectives of your sustainability plan
Once you know what the biggest problems are, you can start creating your sustainable business strategy. This will depend on your target audience, your product, and what you consider important.
If you’ve found that your hiring process isn’t diverse or that you’re generating more waste than necessary, you can set goals to address these issues. For example, you might set a goal to reduce waste by 5% month-over-month or look to improve your hiring process with the help of outside professionals.
Use SMART goals to create realistic goals. Each goal should be:
Specific
Measurable
Reachable
Relevant
With a defined deadline
This ensures that you are not creating unrealistic goals and that you have tangible results to work towards. Use these goals to create a mission statement that you can circulate internally and one that you can post on your website.