The Business Case for Prioritising Sustainable Development Entrepreneurs and start-ups play a crucial role in driving sustainable practices, with commitments to sustainability not only benefiting the planet but also boosting revenue, innovation, and talent retention for long-term success.

There is a misconception that only large corporations can have a positive impact on sustainability. But entrepreneurs and startups have just as important a part to play in spearheading sustainable practices. As new enterprises arise, integrating sustainable development into their foundations will be critical for attracting and retaining talent and customers, innovating, and complying with various regulations. Entrepreneurs have the unique opportunity to set the precedent for more sustainable approaches to business conduct.

Why do businesses pursue sustainability? Beyond the crucial benefits to people and the planet, companies are realising the mutual values of sustainability and financial success. From revenue optimization to employee retention, adopting sustainable practices is now one of the most effective strategies to ensure startup growth and longevity. Let's consider what committing to sustainability looks like, and the benefits of doing so for entrepreneurs.

The benefits of prioritising sustainable development for entrepreneurs
Taking sustainability seriously requires businesses to adhere to the four pillars of sustainable development (Waite, 2024) - society, the environment, the economy, and intergenerational equity.

This means businesses must ensure that:

• They meet social needs such as fair wages and safe working conditions.
• They adopt practices that are the most favourable to the planet's health and ecosystems.
• Their product or service provides good value for money, taking into account environmental and social costs like land use and pollution.
• They have a long-term outlook about their business impact on future generations.

How does committing to sustainability benefit startup concerns?

1. Revenue and cost optimisation: Entrepreneurs are continually aiming for lower costs and higher revenues, and businesses can achieve both through critical approaches in sustainability. For example, encouraging remote work where possible to limit carbon-producing travel can reduce overall costs on office space, energy use and infrastructure. Companies can also attract new customers who value sustainability attributes, thereby increasing revenues.
2. Brand and reputation management: Sustainability-leading companies are better able to maintain brand loyalty, as customers are showing a growing concern for people and the planet. 46 percent of consumers are buying more sustainable products as a way to reduce their impact on the environment, according to a 2024 PwC survey.
3. Employee retention: Over two-thirds of staff want to work for a company that is trying to have a positive impact on the world. Startups can thus attract and retain talent by showing that sustainability is integral to their business model. If they don't, employees are willing to leave, as one-third of employees have resigned from their jobs because they felt the efforts by their company to tackle environmental and societal challenges were insufficient. For entrepreneurs to stand the best chance of onboarding top talent, committing to sustainable development is key.
4. Employee engagement and performance: According to a 2023 Adobe report, over a third of employees believe that instituting sustainability practices at work boosts productivity rates. Further, A 2024 Culture Amp survey found that employees at companies deemed genuinely committed to sustainability reported a substantial 16% increase in engagement levels. Sustainability practices therefore can lead to better productivity at work. Not only can sustainability commitments create incentives for exceptional performance, they can also enhance critical competencies. Individuals with a strong awareness of sustainable development "possess a powerful understanding of the challenges facing business today, and frequently command the skills to engage with a wide diversity of institutions and people" (WBCSD et al., 2005). Startups can thus drive success by fostering a culture of improving sustainability metrics, especially those aligned with the business purpose.
5. Innovation: Seeking sustainability also enables innovation because entrepreneurs are forced to look at new ways of tackling and providing solutions for problems. According to the same Adobe report, 37% of employees believe instituting sustainability practices at work opens more opportunities for innovation. When a company asks critical questions such as "how can we transform this product to last for future generations, create social cohesion, protect the environment, and create economic well-being?" companies spur innovative solutions. Sustainability drives new product innovation and new business models; it is an approach that benefits both the business and society.

A great example of sustainable innovation is DASH Water, the fastest growing beverage brand in the UK. When co-founder Alex Wright discovered how much 'wonky' fruit was being discarded by supermarkets, he created a sustainable drinks brand from the wasted produce, without the artificial ingredients found in competitor products, both reducing waste and offering a healthier alternative to consumers.

Opna is another great example of entrepreneurial innovation driven by sustainability. Founded in 2022 by Shilpika Gautam, a Guinness World Record-breaking climate advocate, Opna is a climate fintech startup that aims to 'unlock capital for high-quality carbon projects that address climate change with speed, scale and equity'. In September 2023, it secured $6.5M in seed funding, with a pledge to bridge the gap between corporates and carbon projects, and help businesses make meaningful reductions in emissions.

As these benefits show, incorporating sustainability is no longer an either/or choice. Rather, sustainable development and business success go hand in hand, making a commitment to having a positive impact a no brainer for entrepreneurs.