6 Ways Going Green Can Make You More Profitable Sustainability and profitability are not mutually exclusive.
By Brian Condenanza Edited by Bill Schulz
Opinions expressed by Entrepreneur contributors are their own.
With rising concern about the scarcity of non-renewable resources and their impact on the environment, many companies are debating over how to incorporate greener practices into their policies.
Sustainability not only benefits our planet but improves the financial dimensions of your business. Here's how to help both the climate AND your bottom line...
Revenue and tax incentives
A recent study from the Natural Marketing Institute found that 58 percent of U.S. consumers assess a company's global footprint when they consider purchasing goods and services. These individuals are prepared to pay up to 20% extra for greener products.
Moreover, additional environmental rules are likely to be enacted by regulatory bodies. By incorporating sustainable practices into your decision-making, you're better positioned to satisfy future laws on time and under budget. Companies that do not follow these rules may be barred from receiving government contracts.
Adopting a sustainable approach can also earn you tax credits, rebates and savings from the federal government. There are also a variety of subsidies and funding schemes available to entrepreneurs that want to be more environmentally agreeable. For example, the Environmental Protection Agency awards funds to eligible initiatives that promote climate-responsible corporate practices in a wide range of industries.
Enhance brand loyalty
Being an ecologically conscious company has become a prestige symbol. Managing your business in an ecologically responsible manner allows you to include a sustainable slant into your marketing approach, while resulting in a huge competitive edge over your less environmentally engaged competitors.
Never discount consumer perception dictating the success of a product when it involves melting glaciers and rampant forest fires. Branding your company as one that is committed to a better planet is easier than removing the public perception that you are climate change challenged.
Related: How negative thinking influences entrepreneurs
Reduce costs
In contradiction to big business sentiment that sustainability hinders profitability, going green can actually help you save a lot of money. Costs can be reduced by employing more energy-efficient lighting or creatively re-purposing existing resources.
The more sustainable your company gets, the less resources it will consume. With growing energy costs, businesses must reconsider how they obtain resources. According to McKinsey, in contrast to conventional approaches, a sustainability strategy can significantly diminish operating budgets by as much as 60%.
Investment opportunities
More and more funders are now choosing to fund ecologically friendly companies, while their motivations aren't entirely altruistic. An investor's desire is to make money. A business that faces significant government fines, or a large clean-up effort, is unlikely to be successful and prospective benefactors may also see a firm that is environmentally responsible as being more innovative. Take the example of BlackRock, which is attempting to double its sustainable exchange-traded fund (ETF) offerings while also considering sustainable principles in their portfolios and procedures.
Attract talent
Instilling a sense of purpose in your organization may also help you recruit a motivated and competent staff. It is estimated that nearly 40% of millennials have chosen a job on the grounds of the company's commitment to sustainable principles. Indeed, many workers don't mind having a lower wage when they work for a business with a strong environmental philosophy.
It's the right thing to do
The current meteorological mess we're all dealing with means that now, more than ever, companies must adapt their responsiveness to a world riddled with rising sea levels and heavier hurricane seasons. This is a once-in-a-generation opportunity for business leaders to play roles in averting additional catastrophes and a resulting economic collapse.
Sustainability is here to stay and enterprises that embrace this simple fact will reap immediate rewards.
Related: Can Technology Help Us Fight Climate Change?
