Sustainable business development can drastically enhance company’s reputation and brand value. Today, climate change awareness is at the record high, and it drastically affects consumer behavior. Companies have been following these trends for decades, and now they are trying to integrate environmental practices into their business models, so they can build a social proof and target socially and environmentally aware consumers. In this article, we have shared some of the benefits that sustainability can bring to small and medium size enterprises.
Green marketing concept relies on sustainable and socially responsible business development. Companies that follow this concept have a much better marketing reach, especially among the LOHAS (Lifestyles of Health and Sustainability) consumer group. Many big and successful companies practice this type of marketing, including Ben & Jerry’s, Timberland, Johnson and Johnson, and Starbucks.
Small businesses can profit from the implementation of the green marketing concept, by becoming the preferred choice for the local LOHAS consumer group. The green marketing concept needs to be fully implemented because adding just one or a few sustainable practices to your business model, can be viewed as ‘greenwashing’.
Targets younger generations
Millennials have been all about the benefits of sustainable living and business models, during their high school and university years. That’s why they often turn to sustainable brands. This was proven by the Millennials in Adulthood survey, conducted in 2014, by the Pew Research Center. The survey has stated that more than 32% of American millennials see themselves as environmentalists. So, if you integrate sustainable practices into your small business, schools, universities, NGOs and media will act as your best brand advocates.
Many governments and foundations secure grants for the development of sustainable businesses. Sustainable grants are often very high, and they can easily turn your small business into a big corporate enterprise. Of course, these grants are given to entrepreneurs who have thoroughly planned how their business operation will promote sustainability, reduce environment impact and save natural resources. Most governments and foundations set rigorous rules for applicants, but that’s just another reason, to be honest about your company’s sustainability.
Sustainable practices can drastically reduce your business costs. Recycling is a well-known method that will save tons of scrap materials and put them back into the production process. Apart from recycling, green businesses can also implement other cost-saving environmental practices. They can avoid using certain types of expensive and hazardous materials, or they can reuse their old equipment. Most office businesses can decrease their costs by recycling paper and by using documents in the digital form.
Companies can also save money on utility bills, by making their offices and plants more sustainable. Big production plants can save thousands of dollars, just by replacing their old lighting and HVAC systems. Sustainable lighting and HVAC solutions are easy to install, and they provide optimal energy efficiency for any work environment. For example, Industra Light solutions can be used in retail stores and offices, as well as in production plants and mines.
Sustainable business practices and employee education are the best tools for preventing ecological disasters. That’s why the big industrial complexes invest a lot of funds in building their sustainable image. Companies that are taking active steps to prevent any environmental damage are also reducing their business risks. Environmental accidents can easily destroy your business and lead you to bankruptcy because you’ll be required to conduct an expensive remedial work. That is why businesses need to actively work on reducing their environmental impact and introducing complex sets of safe measures.
Sustainable business model is growing together with the climate change awareness. The unstoppable growth of these ideas and concepts will reshape the future market. Consumers from the Z Generation will be even more environmentally aware, and companies will need to present them with the valid social proof. That is why entrepreneurs should start implementing sustainable practices into their businesses as soon as possible.