The opportunities are real — how a sustainability strategy can help your business grow

August 14, 2024 | 6 minute read

Key takeaways

  • Companies of all sizes and types will be directly affected by the transition to a cleaner economy.
  • Businesses that commit to net zero strategies are likely to strengthen their operations and lower costs.
  • You don’t need all of the answers on how to get started right now; however, it’s important to get the conversation going.

 

When you think of all the risks and opportunities facing your business today, sustainability may not be top of mind — a passing trend or something that only much larger companies need to worry about.

 

Yet sustainability including the transition to a low-carbon economy, is already underway, and it’s going to affect just about every company. How you respond could influence your ability to maintain and strengthen existing and new key business relationships within your supply chain and beyond, attract the best employees and customers, stay ahead of evolving regulations, and more.

 

While some of your competitors may be slow to embrace the change that’s underway, there are several ‘no-regret’ steps your company can take so that sustainability pays off for your business in the years ahead.  

1. Protect your place in the supply chain and gain market share

 

What you should know: Already, 92% of GDP and nearly 88% of global emissions are now covered under a net-zero target,1 and more than a third of companies in the S&P 500 have monetary incentives in place linked to emissions reduction, according to the 2023 S&P Global Corporate Sustainability Assessment.2 Many are assessing not just their own operations, but companies across their supply chains. If they haven’t already, chances are that companies you depend on for your business will soon be requiring you to meet similar targets and sustainability standards.

 

Your next steps: Be proactive. Ask the companies you work with about their sustainability goals and where you fit in. Use that information to help guide your own emissions-reduction strategy. As slow-to-respond competitors struggle to catch up, you could stand to gain market share.

“Companies may at first resist the transition, thinking that cutting emissions and becoming greener costs a lot. But what if you could help the world while reducing your operating costs, strengthening key business relationships and maybe even growing your market share?”

2. Stay ahead of regulations

 

What you should know: While businesses are no strangers to regulation, mandates for firms of all sizes to disclose detailed information on environmental, social and governance practices are increasing, as evidenced by California’s new climate disclosure laws that impact firms all over the U.S.3

 

Your next steps: Get started by establishing processes for assessing and reporting your emissions, use of water and other resources. Rather than viewing this as a distraction from your business, consider it an integral part of your operations, yielding valuable and actionable insights. 

 

3. Invest in cleaner energy to lower your costs 

 

What you should know: Equipment, utilities and office supplies are among the top costs for most businesses.4 Incremental investments in efficient lighting, heating and cooling are just the start.

 

Your next steps: As you look around your company, ask yourself, “How can our next decision or purchase make a difference?” For instance, eliminating paper checks and forms can not only reduce waste, but it can also lower your supply costs while helping you become more efficient. Likewise, utilities operators in your area may provide free or cheap energy audits, with suggestions (and possibly rebates) for efficient lighting or heating and cooling systems that lower energy consumption, all the while slashing your bills.5 And as the costs for electric vehicles and renewable energy drop and they continue to become mainstream, think about whether it makes sense to switch some, if not all, of your fleet vehicles to electric or install solar panels in a new facility you’re building.

 

4. Make sustainability an integral part of your brand

 

What you should know: The intangible benefits of working toward sustainability may be as valuable as the tangible ones. Consider that seven in ten consumers choose to buy more from brands they trust6, eight in ten workers want employers’ values to match theirs7, and 76% worry about climate change.8

 

Your next steps: Speak with employees, customers and other stakeholders about what matters to them. Incorporating their thinking and telling an authentic story about your efforts toward cleaner operations could strengthen your brand and help you attract and keep valued employees.

 

5. Gain near-term benefits without knowing all the answers

 

What you should know: Committing to sustainability may seem daunting, especially at first. But the fact is, nobody has all the answers. While the business community is establishing standards for cleaner business practices and ways to measure progress, knowledge of how to get there will continue to evolve.

 

Your next steps: Don’t let perfection be the enemy of progress. Start now. Conduct a SWOT analysis (which refers to strengths, weaknesses, opportunities and threats) to better understand the implications that clean energy will have for your business. Also get the conversation going within your company and with others in your industry. Taking steps to reduce your emissions can offer benefits now, even as you hone and perfect your strategy moving forward.

 

A Sustainability SWOT Analysis

Chart depicting a Net Zero SWOT Analysis
Matt Elliott

Matt Elliott, Global Banking Sustainability Executive, Bank of America

 

1 Science Based Targets (The Corporate Net-Zero Standard - Science Based Targets), Net Zero Tracker

2 2023 S&P Global Corporate Sustainability Assessment

3 California Legislative Information (https://leginfo.legislature.ca.gov/) laws SB-253, SB-261, AB-1305

4 Business 2 Community, “12 Major Business Expenses (and How to Reduce Them).”

5 Energystar.gov.

6 Customer Trust: The Key to Brand Currency" March 23, 2023, Forbes Books

7 2023 LinkedIn Workforce Confidence Index

8 2024 Edelman Trust Barometer Global Report

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