Although each company has their own reasons and motives for being more green and sustainable in business, here are a few of the primary benefits to becoming a more sustainable company.
Enhanced Brand and Increase Competitive Advantage
The Natural Marketing Institute (NMI) has found in their consumer research that knowing a company is mindful of its impact on the environment and society makes consumers more likely to buy their products or services. "Consumers are more interested in aligning their personal values with the brands they buy. If consumers are aware that companies are mindful of their impact on society and the environment, it positively impacts their repeat purchasing behavior." This demographic according to Cone Communications is roughly estimated at 86% of U.S. consumers who make purchasing decisions based on their personal, social and environmental values. According to the BBMG Conscious Consumer Report, nearly nine in ten Americans say the words "conscious consumer" describe them well and are more likely to buy from companies that manufacture energy efficient products (90%), promote health and safety benefits (88%), support fair labor and trade practices (87%) and commit to environmentally-friendly practices (87%), if products are of equal quality and price.
Increase Productivity and Reduced Costs
Through development of more sustainable business practices, efficiency in operations will increase. With better use and conservation of resources, operations will be streamlined and costs will decrease.
Improve Financial and Investment Opportunity
Financial and investment analysts have recognized companies who have developed sustainability plans with regards to energy efficiency and reduction of environmental impact as an important evaluator criterion. According to the report U.S. Sustainable, Responsible and Impact Investing Trends, the market size of sustainable, responsible and impact investing in the U.S. in 2016 is $8.72 trillion, or one-fifth of all investment under professional management.
Minimize Carbon Risk and Improve Energy Efficiency
In Allianz Risk Barometer report on 'The Top 10 Business Risks ' they highlight increase in natural catastrophes (due to climate change) which disrupt business as one of the top four business risks. The U.S. is the world's second largest carbon contributor, after China. A key benefit to becoming a green business is reducing a company's carbon output and improve energy efficiency.
Increase Employee Retention and Recruitment
Employees want to work with companies who are 'doing the right thing' and being proactive with corporate environmental and social programs. In the report Advancing Sustainability: HR's Role by the Society for Human Resource Management, companies with sustainability programs report 55% better employee morale, 43% more efficient business processes and 38% improved employee loyalty.