As environmental issues continue to make headlines, businesses and consumers are increasingly turning their attention to sustainability and the impact we all have on the environment. But how does this affect business value?
The UK Green Building Council’s (UKGBC) new report, ‘Capturing the value of sustainability: Identifying links between sustainability and business value’, aimed to discuss those links.
The research noted that it was important to establish this relationship “in order to demonstrate to employees, shareholders and customers why it makes commercial sense to be striving to improve environmental and social impact.”
One of the key elements highlighted by the report is the financial value of sustainability. Investors, employees and customers are increasingly demanding to see businesses take a stance on the environment.
Recent research by Sprout Social found that two thirds of consumers feel it is important for brands to take a public stance on leading social and political issues, while a study by Unilever revealed that a third (33%) of consumers make brand decisions based on their social and environmental impact.
What’s more, SolarCity’s Consumer Trends in Sustainability report found that three quarters (75%) of consumers would be more likely to choose a business that is making an effort to be sustainable, and a similar amount (72%) want to learn more about corporate sustainability initiatives.
Understanding of this consumer demand and the impact on business was echoed by the audience at UKGBC’s report launch event. When asked what value drivers would be impacted the most by sustainable business activities, nearly half (47%) cited brand and reputation. This was followed by customer attraction and satisfaction (25%), cost saving (17%), and talent attraction and retention (7%).
Unilever’s chief communications and marketing officer, Keith Weed, told Marketing Week that sustainability was no longer a ‘nice to have’ for businesses.
No matter what industry they are in, companies need to “act quickly to prove their social and environmental credentials, and show consumers they can be trusted with the future of the planet, and communities, as well as their own bottom line.”
Sustainability at the heart
Companies that put sustainability at the heart of what they do will, the UKGBC’s report suggests, see greater financial performance from enhanced profit and revenues, lower cost of capital, and greater returns on equity and assets.
But businesses need to make sure their sustainable practices are really embedded in the company culture. Speaking at the launch event, chair of UKGBC and MD of Argent, David Partridge, argued that responsible development requires companies to go beyond the “sustainability tag” and root sustainability in business-as-usual.
With sustainability, often the best course of action is preventative rather than reactive. Investing in better glazing from the offset will improve a building’s heat retention, making it more eco-friendly, and will make savings in the long run. Here at Veranti we’re committed to our environmental responsibility. Contact us today to discuss our high-quality and high-performance solutions.
As environmental issues continue to make headlines, businesses and consumers are increasingly turning their attention to sustainability and the impact we all have on the environment. But how does this affect business value?
The UK Green Building Council’s (UKGBC) new report, ‘Capturing the value of sustainability: Identifying links between sustainability and business value’, aimed to discuss those links.
The research noted that it was important to establish this relationship “in order to demonstrate to employees, shareholders and customers why it makes commercial sense to be striving to improve environmental and social impact.”
Financial value of sustainability
One of the key elements highlighted by the report is the financial value of sustainability. Investors, employees and customers are increasingly demanding to see businesses take a stance on the environment.
Recent research by Sprout Social found that two thirds of consumers feel it is important for brands to take a public stance on leading social and political issues, while a study by Unilever revealed that a third (33%) of consumers make brand decisions based on their social and environmental impact.
What’s more, SolarCity’s Consumer Trends in Sustainability report found that three quarters (75%) of consumers would be more likely to choose a business that is making an effort to be sustainable, and a similar amount (72%) want to learn more about corporate sustainability initiatives.
Understanding of this consumer demand and the impact on business was echoed by the audience at UKGBC’s report launch event. When asked what value drivers would be impacted the most by sustainable business activities, nearly half (47%) cited brand and reputation. This was followed by customer attraction and satisfaction (25%), cost saving (17%), and talent attraction and retention (7%).
Unilever’s chief communications and marketing officer, Keith Weed, told Marketing Week that sustainability was no longer a ‘nice to have’ for businesses.
No matter what industry they are in, companies need to “act quickly to prove their social and environmental credentials, and show consumers they can be trusted with the future of the planet, and communities, as well as their own bottom line.”
Companies that put sustainability at the heart of what they do will, the UKGBC’s report suggests, see greater financial performance from enhanced profit and revenues, lower cost of capital, and greater returns on equity and assets.
But businesses need to make sure their sustainable practices are really embedded in the company culture. Speaking at the launch event, chair of UKGBC and MD of Argent, David Partridge, argued that responsible development requires companies to go beyond the “sustainability tag” and root sustainability in business-as-usual.
Preventative rather than reactive
With sustainability, often the best course of action is preventative rather than reactive. Investing in better glazing from the offset will improve a building’s heat retention, making it more eco-friendly, and will make savings in the long run. Here at Veranti we’re committed to our environmental responsibility. Contact us today to discuss our high-quality and high-performance solutions.
