You are not alone if you are wondering " what does Sustainability have to do with business" Here is the answer , Everything. In my last article I have given a definition of sustainability and its three aspects, or what is better known as the PPP, People, profit , planet;
So what is the benefit of Sustainability to business?
Reduces cost : all companies have an interest in keeping costs in check. Sustainability provides a mechanism to reduce costs by focusing on using less resources ( raw material,energy, people and water), making processes more efficient and minimizing or eliminating waste.
Preserves Resources : a key element of sustainable business practices is the preservation of the resource base. Companies are realizing that the raw material they depend on to produce their products are being threatened; so a sustainable plan will use less raw material .
enhance reputation : as Warren Buffett puts it " It takes twenty years to build a reputation and five minutes to ruin it ". today,those few minutes may feel like 30 seconds. A tiny mistake can destroy your company, so make it sustainable and build your reputation.
attract capital . Just as consumers are becoming more aware of the importance of sustainability issues so are the investors and shareholders . there is growth in socially responsible investment and ethically screened funds, embedding ESG issues into investment analysis, as well as a growth in industry standards. As the environmental and social criteria are becoming a standard part of lending risk assessments, sustainable business are more likely to be able to attract capital from banks and investors.
Increase transparency : Customers, investors , and businesses are asking for more and more information about what a company is doing in sustainability, not just on terms of its own operations but also those of their suppliers. They are being asked to share this information publicly, both good and bad, on their websites, in annual reports, and increasingly it is required for the growing number of ratings and awards that categorize companies based on their effort and the sustainability aspects of their products.
Source: The sustainable MBA, a business Guide to Sustainability