Contrary to popular beliefs, company profitability and being environmentally conscious are not mutually exclusive. Companies are currently shifting towards sustainability by being eco-friendly. In fact, companies are currently becoming more and more open to the fact as well as highly aware that they can make good money – thus financially strive – while also trying to make the world and the environment a better place. For example, Ikea is known for its mission of being environmentally friendly and is also a profitable company. “By 2030, we’re committed to only using renewable and recycled materials and to reduce the total IKEA climate footprint by an average of 70% per product”
Social inequality and climate change are urging startups and companies to base their business models on the 17 United Nations Sustainable Development Goals, SDGs (No poverty, zero hunger, good health and wellbeing, quality education, gender equality, clean water and sanitation, reduced inequalities, partnerships for the goals, affordable and clean energy, decent work and economic growth, industry, innovation and infrastructure, sustainable cities and communities, responsible consumption and production, climate action, life below water, life on land, peace and justice strong institutions) That being said, in order for startups and companies to tap into this new world where they cannot thrive on the cost of ecosystems, biodiversity and rising inequality, they must think sustainable, act sustainable and practice sustainability. Building a business program, product and practice around environmental consideration is highly beneficial for the company itself. This method actually creates real profit as well as many business opportunities, such as attract investments for example. In fact, according to an article published on Amazon, 70% of early-stage investors are requesting more detail on the sustainability strategy of startups before they decide to invest and eighty-three percent of the investors surveyed said they want to invest in more environmentally sustainable startups
By embedding purpose, startups automatically attract talents and customers, as it shows how they are bringing a shift of mindset and values while solving bigger, more complex and collective problems. Today, millennials have become more likely to switch to brands and work within companies that are associated with a cause. Plus, when a company works with purpose, the team gets more inspired and naturally becomes willing to come up with new ideas which inevitably makes for the company’s success. Also, investors are attracted to startups that create revenue while also considering sustainability principles and environmental impact.
Finally, it is undeniable that sustainable initiatives help create profit. Startups should not only include this concept in the corporate agenda. They should also execute it, which is, in most cases, the hardest part; according to McKinsey, startups should identify issues and set priorities, set goals, show the money and create accountability. Ultimately, companies that build sustainability into their operations see immediate benefits and create conditions for long-term success.
Bibliography
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Making Sustainability Profitable. (2014, August 1). Harvard Business Review. https://hbr.org/2013/03/making-sustainability-profitable
S.B.S.S. (2014, July). Profits with purpose: How organizing for sustainability can benefit the bottom line. Mckinsey.Com. https://www.mckinsey.com/~/media/McKinsey/Business%20Functions/Sustainability/Our%20Insights/Profits%20with%20purpose/Profits%20with%20Purpose.ashx
T.W.’. (n.d.). #Envision2030: 17 goals to transform the world for persons with disabilities | United Nations Enable. Un.Org. https://www.un.org/development/desa/disabilities/envision2030.html
Amazon. (2022, April 27). Investors more likely to back startups with strong environmental sustainability credentials. EU About Amazon. https://www.aboutamazon.eu/news/sustainability/investors-more-likely-to-back-startups-with-strong-environmental-sustainability-credentials
