From small businesses to big companies, everybody can now reap the plentiful financial benefits of moving their business in an eco-friendly direction. Keep reading below to find out what these benefits are!
Awareness of the importance of better preserving the environment continues to grow and spread these days. Today, more than ever before, consumers are paying more attention to how the products they use, and the companies they buy from, affect our Mother Nature. For this reason, the business environment is seeing significant shifts in consumers’ preferences, trends, and expectations.
A 2017 study on corporate social responsibility has found that 87% of consumers would have a better image of a company that supports social or environmental issues. 88% of them reported they would be more loyal to such a company. And, the same study found that 92% of them would be more likely to trust such a company.
More recent data from Statista shows that, as of 2020, 45% of consumers worldwide report that they were interested in finding eco-friendly and sustainable brands. What’s more, 44% of consumers said that they were interested in brands that support recycling.
So, that being said, it’s clear that today’s consumers want more brands that care about the environment. But, what does this mean for businesses that actually take their sustainability game to the next level? They get plenty of financial benefits.
Here are the five financial benefits of running an eco-friendly business:
1. You get more profits
With more consumers becoming aware of the importance of caring better for our environment, markets are experiencing a new trend: a growing demand for eco-friendly goods.
Today’s consumers are increasingly asking for natural and organic products and have little or no impact on our planet. But, what matters more is that they are willing to pay more for such products. A global survey from Nielsen has found that 66% of consumers worldwide share this opinion. What’s more, the same study has found that consumers want green factors such as goods made from fresh, natural, and organic ingredients, eco-friendly packaging, brands that are known for their social value, and eco-friendly brands.
Now, you may be wondering how does this affects your business. Well, if you produce eco-friendly products, increased demand translates into more profits.
2. You save money
You know what they say, “every penny saved is a penny earned.” And becoming a greener company can definitely help you save significant amounts of money.
One way in which you can save money as a sustainable business is to practice energy conservation. This significantly reduces your energy costs. The same goes for practices like water conservation and reduced waste.
Let’s take waste, for example. Waste disposal can cost your company a lot. And it costs the environment even more if you don’t manage it right. But, using sustainable waste management solutions such as waste ballers and compactors will save your company money and the environment from pollution. Options like rental or leasing makes business sense to use ballers or compactors to manage your company’s garbage efficiently.
As for energy conservation, by using energy-efficient equipment such as solar power or wind power, you’ll cut down on energy costs significantly. One study has found that the average American business pays about $557 in energy costs every month. And, by using solar panels instead, those costs were cut down by nearly 89%.
3. You attract top talent to your team
Not just today’s consumers look for eco-friendly brands. Skilled professionals do too.
According to a 2019 survey, 40% of Millennials reported that they’d chosen a job over others because the company performed better on environmental responsibility than the other choices. 17% of Boomers said so too. What’s more, 70% of Millennials also said they would stay with a company as long as the company has a strong sustainability plan. Nearly half of all respondents of the survey have also said that they would be willing to accept a pay cut if that means working in an environmentally responsible company.
So, how can this financially benefit your business? It may attract top talent to your business. All employers want to have the most skilled employees out there. That’s because good employees do their job right, and this attracts customers and gives the business a competitive edge.
Top talent professionals will do a fantastic job at their tasks, which will leave your customers satisfied and have them come back to your business again and again. What’s more, satisfied clients also often result in new customer acquisitions, thanks to the power of word-of-mouth.
So, you do want top talented employees in your company. And, being an eco-friendly business may be a great way to attract them.
4. You benefit from a green reputation
We’ve already said it before, and data proved it: consumers prefer brands that care about the environment and have sustainable practices. So, when you do that, you earn a reputation as a green brand.
In the business world, reputation is everything. A poor reputation can destroy your business, while a good reputation can attract more customers to you and help you earn more profits. Being an eco-friendly brand makes your business more appealing to customers, clients, employees, and business partners or investors. All these translate into more financial benefits for your business.
5. It can be part of your marketing strategy
Sharing with the world that your company is doing its part to protect the environment better is a great way to get all these financial benefits mentioned above. It’s all right to “brag” about your green efforts to customers as long as they are true. But, make sure you stay away from greenwashing. In other words, don’t make sustainable claims that aren’t true because this may actually backfire and work against you.
Including your eco-friendly efforts in your marketing strategy will enhance your reputation as a green brand, and, as mentioned before, this will translate into several financial benefits for you.