As a result of enhanced regulation, many business leaders are aware that they must take action to reduce carbon emissions. However, what isn’t always obvious are the potential wide-ranging benefits that sustainability action can bring to a business.
As well as growing evidence of a positive link between purpose lead businesses and improved financial performance, businesses that integrate sustainability into core strategy often see transformational impacts across the entire organisation. The business case for sustainability can provide solutions to some of the key challenges that SMEs face today.
Key Benefits
1. Better prepared to manage risks associated with climate change
2. Able to anticipate and respond to stakeholder needs and expectations
3. Improved brand reputation among employees, talent, and clients
4. Strategy development due to internal innovation and new markets
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Drive innovation and take advantage of technology
To deliver on bold sustainability commitments, organisations will have to innovate to reduce emissions, address risks, minimise inefficiencies and enhance data transparency.
By taking advantage of existing technology leaders can make data-driven decisions, leading to more efficient buildings, healthier workplaces, and a reduction in costly business travel. Organisations that embrace the cloud will see transformational benefits that include increased security, lower IT costs, and the ability to scale and innovate.
Attract and Retain Talent
‘Greening’ your HR benefits package can improve your employer brand,
attract new talent, and increase employee satisfaction and well-being. 75% of
employees say they’re more likely to stay because of their employee benefits
package and 50% of employees would be willing to quit their jobs to work for
a business with a strong sustainability strategy.
Communicating the company’s sustainability values through your recruitment process will attract sustainability-minded talent who wish to learn and use industry-specific sustainability skills. Re-aligning HR policies to your sustainability-focused values helps deliver on Environmental, Social and Governance criteria as well as the wider Sustainable Development Goals with a particular focus on resource management, and gender and diversity targets.
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Reduce Costs
By focusing on carbon reduction, an organisation will begin to minimise inefficiencies and improve the management of policies, processes, suppliers, and resources leading to significant cost savings. Despite concerns of the opposite, savings can often be made by choosing low-carbon alternatives.
Identifying new business opportunities
The risk of litigation and regulation of carbon-intensive products and services will lead to innovative R&D and the formation of new markets and customers. Alignment with science-based targets and demonstration of positive climate action creates positive PR opportunities for an organisation. Communicating this action to stakeholders will attract new sustainably focused clients, partners and investors.
Competitive Advantage
Resource efficiency, positive PR, and innovation through R&D, all translate into cost savings, improved profit, and competitive advantage. Creating new sustainable products or a value-driven strategy will be a key differentiator in a competitive market. Furthermore, ambitious companies that take positive action now, may have an advantage over competitors, in being prepared for new enhanced emission reporting obligations.
Mitigate against climate impacts
Investing in low-carbon activities can reduce environmental risks associated with climate change. The installation of renewable energy sources such as heat pumps and solar panels, in homes and offices, will create greater security over the supply of energy. Being prepared for the likely interruption of energy supply and the impact of rising energy costs will enable businesses to continue to operate efficiently.
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