Why should your company include sustainability in its strategy and communication? See our 5 main reasons!
1. Consumer Demand and Enhanced Brand Reputation
Consumers are increasingly conscious of the environmental and social impact of the products they purchase and the companies they support. Derzeit bevorzugen 71 % der deutschen Kunden nachhaltige Marken und 49 % sind bereit, dafür mehr zu bezahlen. Companies that are transparent about their sustainable practices can build trust and strengthen their relationship with consumers.
2. Regulatory Compliance
EU and Governments around the world are imposing stricter regulations regarding environmental protection and social responsibility: Corporate Social Responsibility Directive, EU Taxonomie, Lieferkettengesetz und EU Green Claims Richtlinie. Putting sustainability on a back burner is therefore no longer an option. Risk management and non-financial reporting (or sustainability reporting) is now a must.
3. Operational Efficiency
Sustainability often leads to operational efficiency, as it encourages the optimization of resources and reduction of waste. Implementing energy-efficient practices, reducing water usage, and minimizing waste can lead to cost savings over time. Additionally, sustainable supply chain practices can create a more resilient and reliable supply chain. Study by published by Bain & Company and EcoVadis in 2023 find strong correlation between ESG performance and revenue growth of the company (up to 6% revenue growth above those in their sector).
4. Investor Attraction and Retention
Investors are increasingly considering environmental, social, and governance (ESG) factors in their investment decisions. Companies that demonstrate a commitment to sustainability can attract investment from these socially responsible investors. Moreover, sustainable practices can contribute to long-term financial stability and growth, making the company a more attractive investment opportunity.
Incorporating sustainability into a company’s strategy is not just about fulfilling a social responsibility; it’s a strategic move that can lead to tangible benefits in terms of customer loyalty, regulatory compliance, operational efficiency, investor attraction, and enhanced brand reputation.
Greenativity helps you to reach your sustainable goals and report about them. Reach out to us for free initial consultation!
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