Sustainability is a trending topic in business, and there’s a reason: companies are realizing how important it is in today’s market. Eco-conscious efforts no longer have to take a back seat to profits or dividends, and today’s most successful ventures have integrated environmentally sustainable practices into their business’s DNA. How? The sustainability business model creates long-term value by considering how an organization operates in its ecological, social, and economic environments.
With rising demand from investors to embrace a sense of purpose, companies are including environmental consciousness as a part of their brand identity not just for the ecological benefits, but because it actually boosts profits. The importance of sustainability continues to grow due to the direct link between changing global conditions and changing consumer interests. As pressure for transparency builds, businesses have the opportunity to highlight their efforts while also boosting revenue. Adopting an environmentally conscious model encourages business success without sacrificing core values and helps companies achieve their altruistic aims while increasing shareholder confidence.
First, companies must look at their biggest environmental impacts, then make choices about which are most important to their values, success, and impact on the planet. “Having the planet as a shareholder or constituent helps justify decisions that may, either in the long or short term, trade profit for sustainability,” writes Rebecca Deczynski in an article for Inc.com. Of course, such efforts vary from industry to industry, but changes can be implemented at all levels of an organization. Operational changes like sourcing materials ethically and transparently and standardizing environmentally conscious manufacturing practices are a good place to start. As we work toward waste-conscious packaging or distribution and shipping options reducing carbon footprints, businesses are also reducing landfill waste, energy consumption, and vehicle emissions.
More and more companies, like Patagonia, Dr. Bronner’s, and Seventh Generation, are working to improve sustainability efforts must also embrace a model of transparency. Only by being open and honest about where product materials come from, how they get from factory to consumer, and how the organization prioritizes the environment, can we understand the impact and benefit on a macro and micro scale. By streamlining supply chains, utilizing renewable resources (solar, wind, hydroelectric), reducing waste, using recycled/reusable/refillable materials and packaging, the company can make a substantial positive contribution to the environment at large.
On a smaller scale, by paying all employees a living wage, the business benefits the internal ecosystem of the company. Workers who are appropriately and respectfully compensated for their work are happier at their jobs, making them better ambassadors for a brand which makes them feel valued.
So when it comes to determining if a company is actually eco-friendly and not just another product of “greenwashing,” ask yourself a few questions: Where did these materials come from? How far did it have to travel to get to me? Is the packaging minimal and recyclable? Who made this product, and are they paid properly? What happens to this product when I’m done with it? By taking a little time to make informed decisions, consumers are able to spend their dollars with companies that align with consumer values, putting pressure on all companies to embrace sustainability efforts.