At last year’s COP26 talks, the world saw climate activists increasing pressure on governments to tackle global warming. Again, the issue of green washing was at the forefront and at the center as protesters took to the streets to urge leaders to seek new legislation and stop less strenuous efforts to achieve carbon neutrality.
But as tensions rise over nations, so does the spotlight on corporations. Customers and employees alike are increasingly looking to companies to provide identified changes to their business models to ensure a more sustainable future for all. In the future, eco-friendly overhauls of the company’s structure will be “much better” and will be a key value for business strategies.
So what are the reasons behind this transition and the rise of small business sustainability? Below we break down the 6 reasons why companies of all sizes are adopting new practices and turning green to prove their business in the future.
Employees are enthusiastic about environmental issues
As the global cry for climate action grows, it is becoming clear that employees want their companies to do more. A 2020 study conducted by CensusWide reveals the statistics of businesses that are reluctant to make meaningful changes because it is becoming increasingly clear that employees want their company to reflect their values through their activities, not words. It showed that:
- 72% There were employees Concerned neo-hippies and their global warming, i’ll tell ya Concerning environmental protection.
- A stunned 73% Respondents claim that their Companies were not involved enough with sustainability Effort
- 65% Among the interviewees they said Organizations that have strong sustainable initiatives in their culture are more likely to choose roles..
- Meanwhile, 63% Would like Learn green skills To increase their value to eco-minded organizations. These planet-protection passions also extend to execs.
In addition, Accenture Research interviewed and published 4,051 C-Suite leaders. 73% see the transition to sustainable business practice as a significant priority over the next three years.
Another indicator that employees are serious about green practice is the emergence of leadership positions within the sector. As the number of environmental, social and governance (ESG) roles increases, more and more organizations are recognizing the value of expert assistance in writing and implementing sustainability plans.
Want to appeal to your eco-advocating staff? Committed to environmental impact monitoring can give management access to meaningful metrics. With these numbers, it’s easy to write business sustainability plans, set baselines, and set stimulus goals that can bring teams together in search of a greener future.
Climate disclosure reporting is becoming mandatory
Although many companies now voluntarily participate in climate disclosure reports, countries around the world are seeking to increase the impact of this framework by making it mandatory. The theory is that by forcing companies to be more transparent about their environmental impact, investors will be attracted to companies with more green initiatives.
Just last month, the United States announced that it was considering more comprehensive legislation that would require agencies to analyze and disclose their environmental impact. Over the past ten years, voluntary disclosures have doubled annually, but purposeful regulations will require all publicly traded companies to include climate risk assessments in their annual financial analysis. These reports should cover the entire notation of greenhouse gas emissions, including those created by the supply chain and commuters.
More detailed climate disclosure reporting will undoubtedly help companies look at their carbon footprint more rigorously. Nevertheless, these regulations will present challenges that all organizations need to prepare for soon.
Other eco-friendly regulations are on the rise
On top of plans to make emissions reporting mandatory, countries are persuading a host of other regulatory initiatives to protect the planet. In 2018, the European Union has enacted a number of laws aimed at inspiring broader discussions on sustainable governance worldwide.
Another example is the UK’s ten point plan which is part of the nation’s intention to be carbon neutral by 2050. Launched in the Green Industrial Revolution, the initiative includes plans to accelerate the use of renewable energy, improve air quality, and implement new building standards that focus on energy. Efficiency and low carbon heating.
These plans will affect businesses in many ways As similar regulations are created in countries around the world, companies need to adapt quickly to remain loyal.
Delays can hit hard bottom lines in the long run
It’s easy to draw parallels between taking a trip down memory lane, this latest drive toward sustainability, and another big change we’ve been facing in recent years.
From camera powerhouse Kodak to mobile giant Nokia, there are plenty of stories of successful companies that have failed to innovate in the face of digitalisation. The cost of not performing has been staggering in many cases, with companies collapsing because they have not pivoted to meet the changing needs of customers.
Consumers have statistics on sustainability and it doesn’t look favorable for companies that are reluctant to invest in more environmentally friendly practices. Eighty-one percent of consumers worldwide think that companies should help in the fight against climate change. Research has also shown that More than 60% of Generation Z will choose green business over their less environmentally-conscious competitors.
If digitization teaches us anything, burying heads in the sand will prove less cost-effective when companies begin to lose their clients to more eco-friendly businesses.
Sustainable practice is becoming a mandatory element in many collaborations
Increasingly many companies are making sustainability a mandatory element of any collaboration. Take the fashion giant Jalando, for example. By declaring climate change a defined problem of our generation, they took drastic steps to be part of the solution.
In 2020 Zalando announced that any brand wishing to view features on their site would have to share information regarding the sustainability of their supply chain by 2023.
As the largest online retailer in Europe, an overhaul of their partnership is no small feat. Jalando said any affiliates who did not stack up against the Higgs brand and retail module ranking system would be removed from next year.
“Yes, this is a strong position we are taking. But we see a significant connection between sustainability and the continued commercial success of our business.”
Kate Heiney, director of sustainability in Jalandhar.
Jalando is not alone in taking a hard-line stance towards sustainability. Other brands are making huge changes to appeal to the younger generation of customers and to prove the future of their supply chain. Amazon is another example of a company tightening its environmental protection requirements.
Supply chains are going through a big eco-minded overhaul as more and more companies want to distance themselves from green washing allegations. Below the line, businesses that neglect sustainability may find themselves off of profitable partnerships.
Sustainability is not the only right thing to do; It’s a smart business decision
We are all stakeholders in climate change. Annual scientists reveal when our use exceeds the natural resources that the planet can produce each year. They develop what is known as the Overshoot Date for each country which provides a wonderful insight into the global overhead costs.
As we continue to run our resources at an alarming rate, companies have an important role to play in protecting the planet. As the effects of global warming accelerate on every continent, there are perceptible fears about the personal and economic implications ahead.
It is clear that some significant sustainable solutions need to be incorporated into corporate social responsibility protocols. Not only do companies have a moral obligation to ensure that their practices do not have a detrimental effect on the environment, but their business can also rely on these structural changes.
Whether resources are declining and energy costs are skyrocketing or the struggle to retain top talent, businesses can experience crises if they do not put the planet at the forefront of their future business plans. It can be hard to inspire real change, but you don’t have to go it alone. Tackling an issue as wide and varied as sustainability requires collaboration to create the innovative steps needed to reach net zero.
Take renewable energy, for example. It can be difficult for small businesses to figure out where to find green energy supplies. But depending on the nature of your organization, changing your activities can be as straightforward as changing your provider. There may also be financial support to help small business owners with renewable energy sources.
Even if you choose to tackle your carbon emissions, it is clear that moving beyond the sustainability curve is ethical and good for business. Early adopters of eco-friendly methods have reaped the benefits. Think of companies like Patagonia, Ikea, and Whole Foods, which have long championed sustainable materials and zero-waste, and it’s hard to argue that eco-friendly strategies aren’t compatible with success.