5 Reasons Why “Sustainability” Should Be Company’s Priority in 2021
Creates positive brand image and strengthen company’s competitive advantage
Consumers are demanding more for the company to take social responsibility
Transparency, which comes when you implement a sustainability strategy, will have company increase efficiency
Not only consumers, talents are also trying to look out for company with environmental-conscious culture
Help company enter into new markets, and strengthen their position in the existing ones.
Sustainability is not a new word to anyone. You might have heard some people make a speech about it, or accidentally read research papers somewhere else. But if you still feel like it is “too conceptual”, “too inapplicable”, and “too irrelevant”, here’re the simple reasons why you should rethink and put this matter to the first priority.
The idea behind “sustainability” is to focus on meeting the needs of the present without compromising the ability of future generations to meet their needs.
It comes with three pillars: economics, environmental, and social.
1. Positive Brand Value and Company’s Competitive Advantage
We are all living in the world of consumer-centric battleground, so the more you understand your targets, the better you can manage to become top of their mind. According to a survey by Nielson conducted to U.S. consumers, 75% of millennials are likely that they’re changing habits to reduce environmental impact, and 53% of them say they’d be willing to forgo a brand in order to buy products that are environmentally friendly. Whereas research collected from 9,000 people across Asia reported that 75% motivated significantly to lessen their environmental footprint, with cost and east remain a barrier. But if you’re in a B2B industry, ESG is definitely the thing you’re looking for.
2. Meet Consumer Demands
As the number of millennials and generation Z increases, the trend toward supporting sustainability products is getting stronger. Nielsen studies show that 66% of consumers would spend more for a product if it came from a sustainable brand, and 81% of global consumers feel strongly that companies should help improve the environment. Although the sustainability concept is also about social and economic aspects, environmental concerns lead the thinking.
3. Increase Overall Efficiency
One thing which will also come when implementing a sustainable business practice is a “transparency” of all activities in the company. Thus, you can track unnecessary losses back to its causes. According to McKinsey report, a sustainability strategy can reduce costs substantially and can affect operating profits by as much as 60%.
4. Attract Talent
Brand image is important, not only for consumer aspects, but also for talent acquisition. A survey of 1,000 employees at large U.S. companies showed that nearly 40% of millennials have taken a job because of the company’s sustainability. With millennials becoming the largest workforce, not having a sustainability strategy can mean losing out on a lot of good talent.
5. Create New Business Opportunities
While some leaders see sustainability as a company limitation, some see it as a breakthrough. A strong sustainability proposition can help companies enter into new markets, and strengthen their position in the existing ones. China’s initiative to fight air pollution is to create investment opportunities worth more than $3 trillion through 2030. In Europe, one of their big challenge is improving food production system to reduce GHG emissions and reducing food waste, which could create 200 million jobs by 2050, and economic value up to €1.8 trillion by 2030.
At SCG, we have been taking sustainability issue as our top priority, but we alone, cannot make this world a better place. This matter needs an action from everyone. Are you ready to take the first step with us? Find out more about our solutions at https://scginternational.com/