How can growth and sustainability go hand in hand with your business? Find out!
‘’It’s time to make peace with nature’’, the UN Chief urged in December 2021, on the fifth anniversary of the 2015 Paris Climate Agreement. Mr. Guterres also shared that due to humanity’s mishandling of the environment, nature is reacting with “growing force and fury”. The result can be seen through the downfall in biodiversity, the spreading of deserts, and record-breaking ocean temperatures. The recent wildfires in Australia, France and California are also examples of many other environmental catastrophes. The planet is reaching its limits that is resulting in creating a barrier for business growth in many ways.
In this blog, we will share some prevalent consequences of environmental change on businesses and the ways organizations can avoid risks to explore better growth opportunities.
Change in Consumer Demand
When consumers realize that the products they are using are creating more harm to the environment, they switch to more sustainable products. According to reports conducted by Deloitte in 2021, 32% of consumers are adopting a more sustainable lifestyle and purchasing environment-friendly products and are switching to more ethical products. The same report from Deloitte shows that 28% of consumers have stopped products that harm the environment in any way. For example, replacing disposable toothbrushes with biodegradable bamboo toothbrushes. All in all, consumers look for environmental sustainability in essential purchases like groceries, household items, personal care and clothing that they buy. Organizations can switch to alternative ways to become more ecologically friendly such as, focussing on natural body care, natural home fragrance, green cleaning products, eco kitchenware, plastic-free toiletries and much more.
Accessibility of Natural Resources
Non-renewable resources are limited in quantity and do not restore after they are used. Except for sunlight, however, Earth’s resources are entirely self-contained and finite. Some examples of non-renewable resources include metal ores, petroleum oil, coal, natural gas and nuclear power. Hence, their remaining reserves in the environment are exhausted- meaning- these resources can never be used in an environmentally sustainable fashion. Agricultural lands are also one of the examples of how natural resources can affect the growth of a business. In cases like floods or droughts, the availability of natural resources can directly affect business operations. However, the scenario is changing and organizations and governments are realizing the negative consequences of harming the environment. Hence, they are finding alternative solutions to harmful chemicals.
Implementing Policies and Rules inclined towards the Environment
Businesses are ensuring their continuity and growth by adopting environmentally conscious ways such as sustainability inclined operation processes, production equipment and much more. They are focusing on policies, rules and regulations that bring the least negative effects on nature and help businesses create sustainable models that do not limit their growth. There are leading sustainable corporations worldwide that work as a great inspiration to others to take necessary steps towards sustainability.
Identify, manage and reduce business risks
The best way to steer clear of risks is through PESTLE analysis that analyses external factors such as political, economic, sociological, technological, legal and environmental that impact your business. This helps you to adapt to the customer demands, technologies and laws in the right manner. Through this analysis, breaking down these external environments helps to identify key elements to be included in your business evaluation, hence avoiding potential damages. This goes without saying that it also helps you become more competitive in the market.
Create opportunities for your business
Organizations can benefit from environmental changes while endorsing social change and avoiding losses as well. The leaders should find alternatives to decrease carbon footprint, be cost-effective and motivate employees to be more productive. Companies can strategize and create new business lines that have practices that include waste reduction, sustainable packaging, committing to ethical work practices, and respecting human rights. This way, many opportunities can be created that help businesses grow and avoid risking sustainability. There can be certain ways to embed sustainability into the businesses that can help reach the targets. Some ways are building sustainability into innovation, measuring success, and linking progress to rewards.
In the process of seeking opportunities that lead to business growth, you need to keep a track of sustainability activities, evaluate and report the progress timely through an effective sustainability data platform. Here comes Goodera as a platform that is designed to cover comprehensive emissions reporting, site assessments and ESG evaluation. With us, you can measure the ROI of your sustainability programs easily. Moreover, we help you fulfil your audit requirements and report as per multiple global standards.
For more information, contact us today!