The Economic Benefits to Business: The Business Case
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Reduce Costs
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Businesses can lower operating expenses while helping the environment by reusing and recycling wherever possible, and by optimizing their use of heating fuel, electricity and water.
Meet Investor & Consumer Demands
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High sustainability firms have stronger market share and stock price performance in the long term than firms who do not invest in sustainability (read the article)
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Research shows that a firm’s risk is seen more favourably by investors when the firm actively manages its environmental risks. This improved perception results in an overall reduced cost of capital through the willingness of financial markets to accept lower risk premiums on equity, or higher levels of leverage. (read the article)
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Consumer demand for “green” products and companies is a significant business opportunity.
Facilitate Regulatory Approval & Mitigate Operational Risk
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Develop your reputation as a good corporate citizen to maintain your license to operate in your community.
Hire & Keep the Best Employees
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Having a good environmental reputation helps recruit and retain top talent (read the article). MBA graduates are willing to forgo 5% of their expected pay to work for a company that has a good reputation for environmental sustainability (read the article)
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Engaged employees are productive employees.
Worldwide cost of environmental degradation is estimated at $6.6 trillion annually
Opportunity is also high: estimated at $4-5 trillion annually
How will this affect your business?
How can you take advantage of the opportunities?