Written by: Wayne Elsey, Executive Contributor
Executive Contributors at Brainz Magazine are handpicked and invited to contribute because of their knowledge and valuable insight within their area of expertise.
If you asked a group of business owners what sustainability means in business, you'd likely get different answers. Some say it's an investment opportunity; others think it's a marketing strategy. But no matter what your colleagues think about the term, sustainability plays a pivotal role to grow profitability.
As more professionals flock to cities with solid sustainability initiatives and high living standards, companies promoting environmental friendliness will see ever-greater demand. The bottom line is that sustainability is an essential element of any business – large or small, old or new.
With 5 billion, half of humanity, as noted by the United Nations, living in cities, the idea of sustainability is shifting. In other words, for many years, people viewed sustainability as a nice to do. However, with people's demands to make cities both intelligent and sustainable, business leaders have an immense opportunity to grow profitability.
In other words, business leaders will differentiate themselves by leaning into social responsibility around sustainability. That becomes a competitive advantage. And that leads to more business and loyal customers and clients. This article covers some reasons why companies should invest in this area and ideas for how to do so successfully.
What Does it Mean to be Sustainable?
One definition of sustainability is the capacity to endure. We want to save our planet and the people and animals. For instance, we want to arrest the power of superstorms. And we want to see companies use innovative technologies to stop global climate change. But we also want everyone living in intelligent cities (or not) to have everything they need for healthy lives. Ultimately, that's what we're all talking about, right?
So, how does sustainability grow profitability? Well, when it’s done right, sustainable businesses can endure through turbulent economic times because they’re more cost-efficient. They could also influence customer preferences by aligning themselves with social good, such as the Sustainable Development Goals (SDG). And they can create new technologies or business models that support social responsibility and profitability.
Why is Sustainability Important to Businesses?
More sustainability-focused businesses are better positioned to succeed in the global marketplace. It might not seem so or may seem slow, but there's a global shift toward sustainability. For example, we know there's a significant movement toward smart cities worldwide. A vital element of that is environmental sustainability.
Further, sustainable companies better anticipate consumer demands. In a globalized world, customers want businesses to focus on environmental and socially responsible operations. Therefore, sustainable companies can not only grow profitability by promoting what they do around sustainability. But they can also attract and retain more talented employees.
However, the process for ensuring customers know about your sustainable company is to make it a core company-wide value. In other words, any business that claims to be sustainable has to be so—top to bottom. Second, you must generate benefits for all stakeholders. And that includes suppliers, employees, customers, and the communities in which they operate. Finally, you need to incorporate sustainability as new technologies and processes emerge. Doing so will keep them as a market leader over the long haul.
Strategies for a More Sustainable Business
Using sustainability as a core value and one that will grow profitability, your business should do the following:
1. Invest in Recruiting and Developing Talent
Sustainable companies know that happy employees lead to better customer experiences and higher customer retention rates. To create a culture of sustainability, you must first create a culture of engagement. You can do this by investing in recruiting and developing talent within your organization.
In particular, sustainable businesses should look for skilled talent in critical skills, such as emotional intelligence. In short, not just technology. So, you should seek candidates with strong communication and collaboration skills, as these are essential for creating a culture of engagement. You should also create sustainability training and mentorship programs to help teams build the skills they need to drive the organization forward.
2. Go Fully Digital and Sustainable
With digital technologies, companies can cut carbon emissions by 15%. But, going fully digital does mean behavioral changes. For one, you have to prioritize sustainability within your business and make decisions to change old habits. For instance, you may decide to go fully remote or hybrid to cut energy. Or, you may consider committing not to do print marketing any longer.
Sustainable companies constantly seek new ways to reduce their impact on the environment. For businesses with products, they could commit to researching and developing eco-friendly merchandise. By conducting research to identify sustainable trends in their target markets and the best technologies for their products, companies could reframe how they produce things.
One Key Objective for Profitability
Ultimately, all business strategies seek to achieve one key objective: profitability. For sustainability strategies, to get it to 'stick' within your company, you need to measure its success. So, once you devise what you'll do to become a fully sustainable business, you must develop metrics. Those metrics, in turn, need to get disseminated through your company, partners, and your target audience.
Moreover, as you achieve greater success in transitioning your business toward total sustainability, you want to educate and inform. The reality is that many people appreciate sustainability. But they don't know where to begin for themselves (aside from recycling). Sustainability is much broader than recycling. It includes everything from repurposing clothing and shoes to monitoring your energy to choosing wisely on your modes of transportation.
However, once your company shifts to becoming fully sustainable, you've got an advantage that's hard to beat. As the public clamors for business leadership, you stand to increase engagement and grow profitability by doing the right socially responsible thing to do.
Wayne Elsey, Executive Contributor Brainz Magazine
Wayne Elsey is the founder and CEO of Elsey Enterprises. Among his independent brands, he is also the founder and CEO of Funds2Orgs. This social enterprise helps nonprofits, schools, churches, civic groups, individuals, and others raise funds while helping to support micro-enterprise (small business) opportunities in developing nations and the environment.
