Ian C Jones
Berkshire UK • 07469018888 ian@newgatetrading.co.uk • LinkedIn
In recent times, the demand for sustainable products has soared, with customers increasingly advocating for eco-friendly choices. This shift is not limited to a particular age group or gender; it spans across generations and industries. Embracing sustainability is no longer just a choice; it's a strategic move that can significantly impact your brand's success. Today we discuss unlocking Success: The Profit Impact of Embracing Sustainability in Your Business.
Sustainable Investing on the Rise
A 2019 study by the Morgan Stanley Institute for Sustainable Investing revealed a growing interest in sustainable investing. Millennials, in particular, expressed a strong inclination, but this sentiment extends to the broader population. The emergence of Generation Z has intensified the movement, with actual boycotting of businesses that don't align with sustainable values becoming more prevalent.
Profit Impact of Embracing Sustainability: Following the Money Trail
Government data highlights that women, in particular, are vocal about what financial institutions do with their money. A substantial 64% of women believe that investments should support companies positively impacting people and the planet. This trend becomes even more significant as women's financial influence continues to grow, with expectations that over 60% of the UK's wealth will be in their hands by 2025.
Building Trust Through Sustainability
Your brand's trustworthiness plays a pivotal role in present and future accomplishments. As sustainability takes center stage in the narrative of the future, integrating it into your business becomes imperative. At Profit Impact, we believe that early adoption of sustainability not only fosters trust with customers but also strengthens relationships with employees and the supply chain.
Transparency, achieved through holistic reporting, creates accountability from stakeholders to customers. The 2021 Edelman Trust Barometer report revealed that 56% of people believe business leaders may intentionally mislead, emphasizing the need for genuine and responsible business practices.
Employee Satisfaction: The Heartbeat of Your Business
Employee satisfaction is deeply rooted in shared values between individuals and their workplace. PwC's report, "The Future of Work: A Journey to 2022," underlines that 65% of people globally prefer working for socially conscious businesses. SMEs have a unique opportunity to fill the gap in the market by aligning their goals with the social and environmental conscience of their workforce.
Unilever stands as a prime example, with a remarkable 76% of its 170,000 employees feeling that their role contributes to a meaningful agenda. Sustainability ambassadors within the organization have played a crucial role in achieving high rates of employee satisfaction.
B Corp Certification: A Beacon of Excellence
B Lab UK shared compelling statistics on B Corp-certified SMEs, showcasing higher levels of employee retention, engagement, and diversity. From lower attrition rates to gender-inclusive leadership teams, B Corp SMEs lead the way in creating positive workplaces.
Trailblazers: SMEs Paving the Way
Several SMEs are making strides in sustainability, setting examples for others to follow. Toast Ale, Beauty Kitchen, and Simply Business, all B Corp certified or pending, showcase innovative approaches. From repurposing surplus bread for brewing to pioneering 'Return, Refill, Repeat' programs, these businesses prove that sustainability can be embedded in various industries.
R&D Funding: Fuelling Sustainability Initiatives
Investing in research and development (R&D) is pivotal for businesses aiming to integrate sustainability. Governments, charitable organizations, and larger businesses are actively funding sustainable projects. SMEs can tap into these opportunities to drive change within their organizations. Programs like The Business of Fashion Textiles and Technology offer support for SMEs innovating the next generation of sustainable products.
Investment Opportunities: A Growing Landscape
The sustainable investment market is expanding rapidly, reaching £22.8 trillion globally. UK businesses are well-positioned to capitalize on investment opportunities, with the country being a frontrunner in integrating Environmental Sustainability Goals. The influx of funds into responsible or sustainable funds in the UK reached a record £7.1 billion in 2020.
Growth and ROI: The Business Case for Sustainability
Businesses that actively plan with climate change in mind secure an 18% higher return on investment (ROI) than those that don't. Certifications for sustainability, such as B Corp, correlate directly with business success. B Corp-certified businesses experience significant growth rates, both in terms of employee numbers and total assets.
Conclusion: Aligning Success with Sustainability
Financial sustainability is more than just about making money; it's about understanding, measuring, and managing social and environmental impacts. Committing to sustainability maximizes the chances of long-term financial success. As your business explores the realm of sustainability, consider the positive impact it can have on society, the environment, and your bottom line.
For further discussions or inquiries, please contact us. We're here to help you navigate the path to a sustainable and successful future.
Bibliography:
Morgan Stanley Sustainable Investing Survey
Gen Z Sustainable Spending
Edelman Trust Barometer 2021
Unilever Annual Report
UK R&D Budget Commitments
Global Sustainable Investment Alliance Review
Triodos Bank Ethical Investing
UK Investment Association Report
GIIN Annual Impact Investor Survey 2020
[B Corp Certification and Business Growth](https://www.mdpi.com/2071-1050/12/20/845
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https://www.newgatetrading.co.uk/post/embracing-sustainability-a-call-to-accountability-in-marketing
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