What Are the Business Benefits of Going Green? 3 Insights for Eco-Curious Business Owners

If you’re starting to think about sustainability, you probably have some questions. What does “going green” really mean in business, and how can it benefit you?

A green business applies sustainability initiatives, operating in a manner that benefits the immediate and worldwide environmental landscape through its policies and activities. 

While the environment will directly benefit from your organization’s sustainable contributions, that’s not the only reason to go green — you will also experience numerous advantages from a business perspective.

How Can Going Green Impact Your Business?

By incorporating sustainable practices into your business, you can reduce your carbon footprint, improve public and consumer perceptions, and open up avenues to profitable new markets. Here are a few specific insights to keep in mind as you chart your path forward.

1. Consumers Are Looking for Sustainable Options 

Pay close attention to consumer perception to identify and implement sustainability trends that will benefit your business in the future.

More and more consumers are recycling, reducing food waste, conserving energy and water, and limiting their use of plastics. They expect to see the same and more environmental proactivity in the businesses they support. With eco-active, younger consumers driving this change, consumer perception and demands will only continue to shift toward sustainability.

Predominant consumer buying power is moving toward younger generations. Harvard Business Review reports that Millennial and Gen Z consumers will inherit $68 trillion in wealth from Baby Boomers by 2030. By 2022, brand names already carried less weight among Baby Boomers than sustainability shopping, with Gen Z consumers slanting even more in favor of environmental factors in their purchasing decisions.

Consumer decision-making and buying activity indicate a growing trend toward sustainability. The business benefits of following this trend are more significant than attempting to build your brand without going green.

2. Transparency Builds Consumer Trust

While many businesses claim to be environmentally friendly, consumers — especially younger generations — now make buying decisions based on authenticity and transparency. Consumers trust a brand when a business substantiates its promises by delivering on them. 

Your business can promote trust by openly sharing its eco-friendly motivations and providing updates as you drive change from within. Let consumers know the steps you’re taking and how they can join you in your mission toward more eco-friendly operations.

When consumers trust your brand and business to be sustainable, you’ll reap the benefits of ongoing support and promotion of your products and services. 

3. Change Starts With Your Employees 

If your goal is to build consumer trust through sustainability initiatives, your staff must be capable of delivering on your promises. Employing capable people with the experience and business acumen to institute and highlight these changes will make your path to true business sustainability more straightforward. Consider your current staff and decide whether any additions would aid the transformation.

Administrators and Managers

Your administrative and managerial staff members will skillfully guide your operation in your chosen direction. They will provide practical problem-solving perspectives, creative insights into eco-friendly solutions, and an alternative, hands-on approach to improving sustainability. 

A technical manager, for example, has the expertise to identify the equipment or machinery you could transition to sustainable alternatives immediately without productivity delays. 

Likewise, a financial administrator could advise on whether renting or buying new machinery makes more economic sense. Investing in green equipment is a business practice that will help you save on energy costs, comply with environmental regulations and improve your organization’s public image. Your administrators and managers can help you do it in a way that makes sense for your business.

Human Resource Specialists

The world’s most prominent green companies will have human resource (HR) departments that play primary roles in promoting and maintaining their sustainability. HR professionals are the lifeblood of many businesses, providing a valuable link between management and other employees. These qualified staff members are essential to developing, creating and implementing sustainability initiatives and policies throughout your business. 

Your HR team defines and supports your company culture in many ways, including by introducing internal policies, schedule changes and remuneration adjustments to your floor staff. These professionals are in an excellent position to promote your sustainability policies. They can encourage ideas from staff members and serve as ambassadors in promoting your initiatives and garnering employee acceptance.

Other Employees

Your employees are vital in growing an eco-friendly culture in your enterprise. While your company’s leaders establish and incorporate your policies, your other team members will provide the buy-in to ensure the changes offer actual value. Promoting a transparent and authentic business means your employees understand and support the nature of the changes. Employees should also be free to make suggestions and take actions that could benefit your organization.

When your employees save coffee grounds for composting, provide feedback about inefficient machines or water the office plants using captured rainwater instead of the faucet, they’re saving your business money and promoting sustainability. These proactive buy-ins all promote your efforts to go green.

Including proactive and efficient staff in every area of your business means going green will be seamless, and your workforce will support your initiatives to make the change.

Direct Business Benefits of Going Green

Your shift toward sustainability benefits the environment and has direct positives for your business. When you operate a green company, you can expect the following:

• Lower costs: Incorporating electric, hybrid and solar-powered equipment, low-pressure water systems, and rainwater tanks calls for an initial investment — but these changes can lower your operational costs over time through energy and water savings.
• An improved consumer reputation: By adopting eco-friendly initiatives, you’ll show the world you care about what’s happening to the environment and are doing your part to change things. The example you set will increase the trust in your brand and your consumer standing, prompting more support for your products or services. 
• A competitive advantage: A successful business relies on outdoing its competition. Going green will give your company an advantage over others that haven’t made the effort to become more environmentally aware.

Going Green Should Be More Than a Consideration

Going green will benefit your enterprise by reducing its carbon footprint and building consumer trust and support. Instituting greener work policies can also invigorate your workforce to drive change through productivity. 

As sustainability initiatives position your enterprise for green business credentials and ratings — highlighting its proficiency in eco-friendly operations — consumer perception, trust and support will improve and take it to another level.  

Connect with an Old National Small Business Banker for more insights to help your business grow.

This article was written by Artemis from Happy Eco News and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to legal@industrydive.com.