For a business, being sustainable enables value creation and value protection. Let’s explore this idea from a few angles:
Businesses are able to have more efficient operations and lower operational costs by adopting sustainable practices. Companies could improve on resource efficiency to reduce wastage or to engage in facility upgrades to enhance safety and reduce accidents. These efforts increase productivity which then translates into lower operating costs and higher profits.
For example, solar power is sustainable and cost effective as an alternative energy to substantially reduce utility bills in the long run. Businesses could get a financing limit that covers up to 100% of the cost to purchase and install rooftop solar PV systems on their premises through CIMB’s financing facilities.
2. Social and Workforce relationship:
Being sustainable leads to improvement in brand value and reputation as it strengthens stakeholder relations. 86% of millennials would take a pay cut to work for a company whose mission and values align with their own. Hence, by sharing a common agenda of sustainability with employees, a company may achieve better talent attraction and retention through a purpose-driven mission.
With a motivated workforce, the quality of goods and services provided will indirectly be elevated and this enhances the reputation of the brand among the community it serves.
Business longevity can be achieved via sustainable practices such as focusing on responsibly sourced material or inputs. By using sustainably sourced inputs, businesses are able to prevent major disruption to their supply chain caused by new regulations, climate change and litigation on unethical labour practices, to name a few.
The use of responsibly sourced materials also helps businesses capture more of the increasing market share of well-informed consumers that pay close attention to a product’s environmental and social impact. As a result, businesses are more resilient towards both demand and supply side shocks.
The benefits of sustainable business practices are not limited to only the above. It may also help your business differentiate your products or help you penetrate into new markets more easily. The result is that your efforts may help bring you more profit.