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How can businesses become climate leaders?

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Climate changes and climate change are a subject that a lot of us are concerned about. It’s difficult to escape visualizing the devastation effects that climate change has on the planet and the people who live there. Growing awareness and pressure from outside have led to more businesses making efforts to lessen their carbon footprint and to achieve carbon neutrality. For many companies, being carbon-neutral is the primary step in their journey to becoming net-zero. There are a variety of simple solutions your business can quickly implement to aid in fighting this challenge. We can help our clients comprehend the long-term and short-term advantages for their business from making climate-friendly decisions by becoming carbon neutral, and even achieving net-zero. We present five reasons why you should become carbon-neutral and assist you start your towards net-zero.

1. Customers are showing an increasing preference for brands that are carbon neutral

Environmental issues are increasingly impacting buyers’ purchasing decisions which is causing a radical shift in both business and consumer buying habits. Today consumers demand more than just high-quality. They are actively choosing brands that reflect their beliefs and are transparent in their operations.

Nowadays, consumers are more open to changing their relationship with brands. For those who consider sustainability as a major aspect 70% of them are willing to pay a price of 35% for eco-friendly and sustainable brands. In this sense, companies which thrive are those that are who are willing to change their strategies. So, being climate friendly can help them draw customers. As a result they’re more likely to achieve an advantage in the market.

We’re seeing similar demands for greater transparency in B2B procurement, with half of buyers monitoring the social and environmental performance of their suppliers. Additionally over three out of four large firms already have the term “sustainable” in their contracts for procurement. Microsoft is one example. It adopts a strict code of conduct that requires suppliers to reveal the carbon footprint of their suppliers. Microsoft is dedicated to continually decreasing its carbon footprint as well as that of the other companies within the market.

2. Employers want employees who are responsible and think about their actions.

The current generation of talent is looking at possible job offers on the basis of the positive social and environmental sustainability impacts. Furthermore positively Planet customers are more often saying that prospective employees ask whether the business is dedicated to sustainability and carbon-neutral.

Recent Deloitte survey revealed recently that millennials want meaningful work and desire an impact on society. But, two-thirds are hesitant to accept an employment opportunity unless the company is committed to solid CSR (CSR) policies. Additionally, the majority would rather take lower wages than working with an environmentally and socially unsustainable firm.

In 2025, millennials will account in 75% of world’s workforce. This means that employers need to be conscious and in tune with their requirements to draw and keep the best talent.

3. Sustainability in your business will help you increase your profits and decrease your expenses

Businesses often ask if sustainability “undermines or improves financial outcomes”. According to studies conducted by non-profit organization CDP companies that systematically prepare and control climate change get an 18% better ROI than companies which don’t. In addition, companies that have environmentally sustainable goods are growing 5.6 times quicker than alternatives that aren’t sustainable.

The global consultancy McKinsey has also found that the focus on social, environmental as well as governance (ESG) goals can dramatically lower expenses. The adoption of sustainable practices can help combat rising operating costs (such as the cost of raw materials as well as the actual costs of carbon or water). A higher efficiency in energy use can, for instance, dramatically cut energy expenses, and result in the internal return (IRR) at 48% in the average.

4. Investors are seeking forward-looking companies that are not scared to make a move.

Businesses often ask if sustainability “undermines or enhances financial performance”. But, as per studies conducted by non-profit organization CDP businesses that diligently prepare and control climate change get an 18% better ROI than companies who don’t. Furthermore, businesses that use environmentally sustainable goods are growing 5.6 times quicker than non-sustainable counterparts.

The global consultancy McKinsey has also found that the focus on social, environmental as well as governance (ESG) goals can significantly cut expenses. Implementing sustainable practices can help reduce the cost of operating (such as the cost of raw materials and the real costs of carbon or water). A higher efficiency in energy use for instance, could dramatically lower energy costs and provide returns on investment (IRR) that is 48%, on average.

5. It’s just a matter of the time before climate-related regulations dramatically influence how you conduct your business.

The regulations pertaining to climate change are evolving and will be beneficial to companies that are able to incorporate the concept of sustainability in their daily business processes. Although some companies are able to be voluntarily open about their sustainable practices Non-financial reporting is required for the majority of large corporations. According to EU laws, for instance obliges public-interest corporations that employ more than 500 people to release details about the environmental and social impacts of their business activities.

Businesses should prepare for increased regulation in the coming years since there is increasing pressure from various groups to make it mandatory for small and medium-sized companies to adopt and demonstrate sustainability processes.

Therefore, it is important that businesses plan for the obligatory environmental reporting requirements especially for publicly-listed companies as they’ll become among the very first who will have to comply with disclosure regulations. So, companies must remain ahead of the curve and stay conscious of the regulations since it is essential to maintain a competitive edge. Additionally, failing to be on top of the game could lead to penalties and legal problems.

Sustainability is a longer-term plan.

Finding the right place to begin in the process of adopting sustainable practices can be daunting and confusing, but we wanted to ease your mind and made it easier to realize the advantages your business will reap from green practices. Green practices can save you both time and expense and will also help you attract customers who are loyal and the best talent of the future. This is a great chance to be a leader in your industry. Take this bold step to get that competitive edge. Making your business more sustainable is a process and now is the ideal moment to begin.