When it comes to business, sustainability is not just a buzzword anymore. It has become the standard and a guiding philosophy for the way many businesses operate worldwide. With well-informed and environmentally conscious consumers keeping the businesses accountable, more businesses are starting to adopt more sustainable practices in every aspect of their business. Businesses are also discovering that turning into more energy-efficient options can actually boost their bottom line in the long run.
In this article, let us have a look at the way sustainability looks like for businesses worldwide and how it is changing the way they operate for the better.
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The Recent Popularity of Sustainable Practices
There has never been a time when sustainable practices across the board mattered more than the current climate in the world. Up until not too long ago, sustainability and its applications, especially in business operations were considered nothing more than a feel-good gesture. The reason for the lack of attention towards sustainability in business was that it did not have a direct impact on the bottom line.
However, the times have changed drastically. There is a growing awareness among people of sustainable practices. The businesses that practice sustainability are more attractive to people since they are deemed friendlier to the planet. Therefore, many businesses nowadays are practicing sustainability in a variety of aspects including their supply chains, energy consumption, consumer relationships, and more.
Here are a few reasons why sustainable practices are now more popular than ever.
Intelligent Consumers
Consumers nowadays are highly informed and socially conscious. When they spend money on a service or a product, they would like the brand that is attached to it to be responsible for the impact they make on the environment. Especially Millennials and Gen Z customers are willing to pay even a premium for businesses that are conscious about their social and environmental impact.
Regulatory pressure
Not just everyday consumers, the governments around the world are also getting more and more environmentally conscious. Governments are introducing more strict regulations around the impact of businesses on the environment specifically. There are taxes on the carbon footprint, and bans on things like single-use plastic which essentially force businesses to fully integrate more sustainable practices into their business operations.
Expectations of investors
Similar to the consumers and the governments, investors are looking at both the environmental and social aspects of a business before they invest their money. If a business scores low on its sustainable practices, it can be difficult for it to attract funding.
Sustainability in Supply Chains
The way supply chains are designed and executed is one of the most significant ways businesses can integrate sustainability into their operations. Historically, the supply chains of many businesses, regardless of their industry, have caused a large environmental impact. This is clearly seen in industries such as manufacturing, retail, and food production. Thinking from a more sustainable point of view allows businesses to change the way they source, produce, and deliver their products in a way that is friendlier to the environment.
Here are several ways businesses are changing their supply chains to be more sustainable:
Sourcing from Local Vendors
Making sure the materials used in creating products are locally sourced leads to a large decrease in transportation emissions. It also helps strengthen the local economies, which indirectly benefit businesses in turn.
Ethical Labor
One of the common misconceptions about sustainability is that it is only about the environment. It is also about making sure the human resources involved in production are treated fairly as well. More and more businesses are opting for suppliers who are transparent about their ethical labor practices. This includes both fair wages and safe working conditions.
Eg: Patagonia
One of the leaders of supply chain sustainability is the apparel brand Patagonia. They are known for prioritizing environmental responsibility in every stage of their supply chain. They source organic cotton and recycled materials as ingredients. Their factories are fair-trade certified, and their marketing and advertising efforts emphasize on repairing or recycling their clothes rather than buying them new. Their sustainable efforts have strengthened their brand’s positive image.
Sustainability in Energy
The carbon footprint of a company is the biggest indicator of its commitment to sustainability, and energy consumption is perhaps the biggest contributor for it. Therefore, there is a huge tendency towards making investments for creating more efficient energy practices and measures.
There is a global movement towards shifting into a future with renewable energy sources to cut down the environmental impact of energy production as well. Many businesses are making the initial investments towards renewable energy which point towards cutting down energy costs down the line.
Energy Efficient Tech
The massive influx of smart devices in the market usually have many energy-efficient measures built into them. Many businesses are moving towards upgrading the tech devices they use to be smarter and more energy efficient to reduce the overall energy consumption. It has a great positive impact on the environment by lowering emissions and the businesses can expect significant cost savings in the long run as well.
Greener Architecture
There are greener and energy efficient architecture standards such as Leadership in Energy and Environmental Design that businesses are adhering to as a part of their sustainability efforts. These greener architectural designs minimize the energy use of the entire building and create healthier and safe work environments as well.
Moreover, although there is a larger cost up front, more businesses are investing in renewable energy sources such as solar and wind power to move towards a more sustainable future. There are businesses that are producing their own energy to reduce the overall carbon footprint.
Finally, as we are looking towards the future, it is apparent that greener and more sustainable business practices will become the norm and the mainstream expectation to be a responsible business. Therefore, companies that are investing in sustainable practices in their business operations worldwide are not only contributing positively to the environment, but also are positioning themselves as a responsible business for long term success.