Why should Sustainability be on the agenda?

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Sustainability is now one of the most important topics of discussion in boardrooms. All around the world today, there is a growing realization that companies have a far bigger role to play than simply pursuing growth and profitability at all cost.

Society as a whole is looking at how organizations go about their business and the impact they have on the world around them. Be that in relation to environmental considerations, social impact or governance requirements. But why is this important for businesses?

There are five key reasons why we think companies need to be taking sustainability seriously.

First, consumer expectations are changing. They increasingly consider sustainability when deciding on the purchases they make. 90% of consumers are likely to switch to sustainable brands given equal price and quality. So if you can’t articulate what you are doing on sustainability, you could be disengaging your customer base.

Two, investors and financial institutions are now considering sustainability when deciding where to allocate capital. There’s a real risk that companies that don’t take sustainability seriously will find it more and more difficult to secure investment or get access to financing at preferential rates.

Third, employees are increasingly placing more importance on how their employers act on sustainability issues and are willing to vote with their feet if they feel the company’s values don’t match their own. So, if companies want to retain and attract talent, sustainability is something they need to act on.

Fourth, increasing regulatory requirements around issues such as modern slavery and carbon emissions mean that companies are being held accountable for the way they operate. There are real financial and reputational risks being driven by regulation so companies simply can’t afford to ignore what is happening across their supply chain.

Fifth, the last reason may come as a surprise to some. It’s around how sustainability can be a value creator for businesses. Many people tend to think of sustainability as an additional requirement and it’s an additional cost to incur. However, sustainable business practices can actually help drive profitability.

Efficiency is the key here how to be more efficient in material usage, how to reduce waste, how to optimize processes this can make a real difference to reducing overheads. If you would like to hear more about our Sustainable Procurement services, please get in touch. More information can be found at ArcBlue.com.