Additional to the obvious benefits of sustainable business practice for our planet and our people (cleaner air, meaningful work to name just two), there are also quite a number of significant financial benefits for businesses:
- The so-called Stern Review established as early as 2009 that the cost of mitigating the fallout of global warming (extreme weather, floods, fires, earthquakes) far outweigh the cost of climate change action!
- Based on the study “From Stockholder to Stakeholder” of more than 200 academic studies, industry reports, newspaper articles and books, Oxford University (2014), found that:
- 90% of the studies on the cost of capital show that sound sustainability standards lower the cost of capital of companies.
- 80% of the studies show that stock price performance of companies is positively influenced by good sustainability practices.
- 88% of the research shows that solid Environment/Social/Governance (ESG) practices result in better operational performance of firms.
- The latest Colmar-Brunton “Better Futures Report” for NZ found that 90 % of consumers stop buying from irresponsible or unethical companies. According to the report, a minimum of 40 % of New Zealanders are committed to a sustainable lifestyle. Plastic waste has been identified as the number 1 concern with 85 % of people wanting to reduce plastic waste. The same report found that 86 % of New Zealanders would want to work for socially and environmentally responsible company.
These studies show overwhelming evidence that adopting sustainable ways to operate your business is a sound business investment adding tangible value and saving cost. Plus, even if you don’t care about the planet – your customers and employees do!