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Does Sustainability Make Business Sense?

Table of contents

8 min read

Business-Meeting

Efficiency and Growth

The Sustainable Business Network explains it accurately by saying, "Sustainability is about protecting your business from the risks of today while ensuring that it can respond to the challenges and opportunities of tomorrow."

Shifting your perspective from a short-term to a long-term outlook will ensure growth. Through the implementation of sustainable business practices, your operations will increase efficiency. Sustainability focuses on reducing waste, water, and energy use. It truly makes the most of the resources used. As a result, you'll have no problem meeting environmental requirements, driving innovation by not depending on finite resources, and ultimately ensuring your business's longevity and success.

Brand Value and Meeting Consumer’s Demands

Let's take a look at Futerra's survey results, as explained by Forbes:

  • 96% of people feel their actions, such as donating, recycling, or buying ethically, can make a difference
  • 88% of consumers want brands to help them be more environmentally friendly and ethical in their daily life

Another study showed:

  • 88% will be more loyal to a company that supports social or environmental issues
  • 87% would buy a product with a social and ecological benefit if given the opportunity

All of this data shows that sustainability is an effective strategy for your marketing department to keep in mind. Fostering environmental awareness will drive more customers to trust your brand, make them choose you over another competitor, and retain their loyalty throughout time. This is will greatly strengthen our global infrastructure.

Company Culture

positive-company-culture

It's important to note that consumers and your employees are on the same page.

According to Forbes, this is how Millennials feel when choosing companies to work at:

  • More than 70% said that they were more likely to choose to work at a company with a strong environmental agenda
  • Nearly 70% of respondents said that a company with a strong sustainability plan would affect their decision to stay with that company long term
  • More than 10% of workers said they'd be willing to go as far as to take a $5,000-$10,000 pay cut to work and support the company's culture

Top talent is looking for meaningful work that gives them a sense of purpose. Since sustainability is something they're passionate about, talent prioritizes working for companies that share their same values. A comprehensive and robust sustainability plan will attract new talent and retain valuable employees. Keep in mind your company wants to back up your sustainability claims and have them be more than a smokescreen. Even if you haven't achieved your sustainability goals yet, outlining your plan and critical touch points will allow your team to feel involved in creating meaningful work that brings value to society.

Strengthen Stakeholder Relations

balance-sheet

Who are stakeholders? Investopedia explains: "A stakeholder has a vested interest in a company and can either affect or be affected by a business' operations and performance. Typical stakeholders are investors, employees, customers, suppliers, communities, governments, or trade associations."

Traditionally business sustainability hasn't been perceived as not profitable or as an impediment to achieving financial goals. However, the perception has shifted as people learn more about sustainability practices and how they reduce business risks. A sustainable business plan makes a sound long-term investment and will attract investors looking for companies with a strong focus on anticipating business risk.

Developing sustainable practices will help create better relationships with your stakeholders. They are likely interested in holding your company accountable for your sustainability initiatives. In addition, communicating your goals, actions, and achievements will help develop trust and nudge them into associating transparency with your brand reputation.

Having said that, it may still be a little difficult to picture what type of business practices you can change or implement into your sustainability efforts. Depending on your company, your brand has different ways and timelines to develop a sustainability plan.

Let's Look at Some Examples of Companies That Have Marked Exciting Approaches to Sustainability:

CHNGE

woman-holding-flowers

CHNGE is an unapologetic ethical fashion brand based in New York.

They've built their company under three pillars:

  1. sustainability
  2. transparency
  3. inclusivity

Its founder, Jason Castaldi, told Forbes, "We want to reduce the environmental impact as significantly as possible through CHNGE and create the most sustainable and transparent brand we can while building a more philanthropic model by donating 50 percent of our profits."

CHNGE honors its transparency pillar by sharing the information of the factories they partner with to produce their clothing. They also detail the certifications each one has, what they make there, why they chose the factory, the union representation, etc.

CHNGE also emphasizes that its garments are produced with 100% organic cotton. Their clothing is 100% carbon neutral. CHNGE offsets all carbon emissions from their production and their consumers' use when washing and drying them. They also do pre-orders on their items to avoid generating waste.

Overall, CHNGE has a very comprehensive approach to sustainability and has managed to gain the trust and support of its consumers. They bring their pillars into everything they do, from the production and design of their clothing to the models they choose. They've also carved themselves a space with their singular voice where they're not afraid to talk about the issues that matter to them and have managed a community around their brand.

 

Imperfect Foods

organic-food

Imperfect Foods started with the intention of repurposing the ugly or overproduced veggies and fruits that grocery stores wouldn't buy from farmers. They took these items and delivered them in curated boxes to their customers at a discounted price compared to those of the grocery stores. Imperfect Foods started in 2015 and has since added different food types such as grains, dairy, and canned goods.

Imperfect Food was born in San Francisco, and its mission has remained the same:

"Eliminate food waste and build a better food system for everyone".

Avoiding food waste isn't the only aspect that holds their sustainability practices.

  • They reduce waste by using reusable and compostable packaging to deliver food
  • Imperfect Foods' largest facility is solar-powered
  • They have one of the most carbon-efficient grocery delivery models
  • The company has developed a sustainability plan to reduce carbon emissions and reduce food miles.

Philip Behn, Imperfect Foods' CEO, said the following regarding the opportunities in their industry:

"As climate change comes more and more to the forefront of consumers' priorities, we're seeing consumers want and demand more from the food industry in terms of where their food comes from and how it's grown while also prioritizing cost and convenience. We can tap into this growing network of customers who care about building a more sustainable food system, and oftentimes cannot afford to pay more, to help push the conversation, cut waste and build a better food system overall."

Krave Beauty

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Krave Beauty is a minimalistic skincare line that started in 2017. Liah Yoo, a skincare Youtuber, founded Krave Beauty when overwhelmed and confused by the messaging and endless beauty industry options. Liah Yoo wanted a more straightforward option that didn't disrupt the skin's natural functionality.

Krave Beauty's philosophy is: "We believe in the power of simplicity by urging every woman and man to step back, press reset, and listen to your skin's true needs. And we're born in this industry to offer truly Krave-able skincare essentials that respect the skin and restore it to health."

The company also realized the beauty industry was telling people they needed to use many products on their skin. Unfortunately, by doing so, clients were risking irritating their skin and producing a lot of waste that affects the planet. This began, as Krave calls it, "our sustainability journey.”

"Recycling and reusing products is helpful, but to be truly sustainable, we need to dial it back to the other "R" we tend to forget: reduce. Our mission is to empower the world to slooow down. We encourage companies in and out of beauty to produce at a responsible rate and cut down on wasteful overproduction to reduce their footprint. All of us have a part to play too; we can reduce our excess product consumption and purchase with purpose, so we avoid piling up what we don't need."

Krave Beauty's starting point was to make most of its products completely recyclable. They use non-toxic adhesive and UV ink, so you can recycle the bottles without removing the labels. Krave Beauty also points out that they send all products in 100% recyclable cartons without excess fillers.

When you place an order, you can add $1 to your order for a carbon-neutral delivery.

Krave Beauty is a member of 1% For The Planet, where they donate 1% of their profits to global environmental protection projects. Krave Beauty also continues to support different environmental organizations. They also have plans to make their packaging even greener and have shared that they're running a Life Cycle Sustainability Analysis (LCSA). Krave Beauty is working to make their internal processes eco-friendly, source renewable energy, create a recyclable program, and present sustainability progress reports.

Krave Beauty is always sharing its progress and the sustainability roadblocks they face. This transparency has helped them connect with their audience and build trust. Their honesty shows that even if they're not there yet, they're willing to do the work to become a more sustainable company.

Considering Sustainability

Stakeholders are invested in sustainability companies and want to be informed of their plans and accomplishments regarding their social and environmental efforts. In addition, aspects like social justice and eco-friendly practices will soon become something consumers expect from the brands they support.

Whether you're considering starting your company or shifting your business plan to have a sustainability focus, we hope these examples have given you some ideas on how others are doing it. Although it can seem overwhelming, outlining a long-term and short-term plan with important milestones will help you get your feet wet. Remember, there are no right or wrong answers, but it's more about what makes sense for your company and where you are headed.

Does sustainability make business sense? The answer is a resounding yes! Sustainability means doing more with less. By embracing sustainability, we ensure the Earth has the resources it needs to keep functioning.

Having your company embrace sustainability means people will feel good about buying from you. They will see your impact and know you care about their health, well-being, and the Earth's. As a result, statistics show they will be more likely to keep coming back again and again over time. In addition, people who are happy with what they've purchased from you tend to tell their friends about it too! So sustainability isn't just good for your wallet; it's good for your brand reputation too!