5 Areas Where Sustainable Practices Help Businesses Profit

Depleting natural resources, fast developments of emerging economies, apparent changes to the climatic equilibrium and various other factors are driving businesses to unprecedented changes.

Business leaders can profit by integrating sustainability into their strategic goals and value-chain while securing competitive advantage. Businesses can improve short and long-term profitability by adopting sustainable practices.

Sustainable development is the need of the hour. Business case for sustainability is growing stronger and will continue to do so.

Application of sustainable practices in the following areas can help businesses grow. Below are 5 areas with lists of how the use of sustainability helps businesses.

1. Energy and Resources

  • Reduce operational  and overhead costs;
  • Conserve capital for implementing a long-term growth strategy;
  • Reduce  environmental degradation;
  • Hedge exposure to volatile fuel and energy prices; and
  • Protect self from supply chain disruptions.

2. Financial Operations

  • Improve access to capital;
  • Improve investor relations;
  • Increase market capitalization and stock growth;
  • Lower risks and insurance premiums; and
  • Decrease borrowing costs.

3. Sales and Marketing

  • Improve brand image;
  • Expand customer base;
  • Secure customers that are less sensitive to price;
  • Differentiate products; and
  • Have greater brand loyalty.

4. Human Resources

  • Improve worker productivity;
  • lower training costs;
  • Reduce employee absenteeism;
  • Retain experienced workers; and
  • Recruit the best talent.

5. Partnership and Collaborations

  • Improve brand image;
  • Better supply chain management;
  • Gain access to new markets;
  • Strengthen regulator and community relations; and
  • Mitigate risks to brand reputation.

What other areas have you seen benefiting from sustainability and how?


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