Sustainable Business need of the hour
Sustainable business not only brings sustainable products to the market but works in a way that does not harm the environment. Earth is desperately in need of sustainable management. This blog explains the need for sustainability and the brand that is already making the difference.#ThinkWithNiche
The increasing awareness about environmental degradation led to an upsurge of sustainable businesses. A sustainable business often termed a green business, is an enterprise that has very little negative impact on the environment. It means the focus of this business is not just fulfilling customer needs but also keeping the environment in check.
The shift of marketing strategy has played a significant role in the growth of sustainable business. The traditional market concept, commonly referred to as the production concept, stated that consumers will buy relatively cheap products. As society progressed the customer preference grew from cheap prices to quality goods. Currently, most companies work under the Marketing and Social Marketing concept.
Sustainable Products- Demand of Consumers
The developing consumer taste and preference required companies to analyze the taste and preference of the consumer and made their product according to the need of the consumer. Increase global awareness among the consumer class and daily highlights of companies disposing their waste in water bodies or burning it down, adding to environmental pollution, shifted consumer preferences. Consumers are now more inclined to the products that come from a green company.
India has a potential for 720 million job opportunities and $1 trillion worth of business opportunities by 2030 for companies working in sustainable development space, said CEO, United Nations Global Impact (UNGC) . The areas where such gains are possible are food and agriculture, energy, cities, construction, and health, he further added. 62% of executives consider that it’s important to have a sustainable strategy to be competitive. Many global leading corporates have taken initiative to illustrate what sustainable development looks like.
In a country, consisting of the world’s seven most polluted cities, sustainable business is a necessity. Though many companies consider environmental safety as important as profits, some still neglect the necessity to change and adapt. According to a survey by Global Compact Network India, Indian companies are not focused on core sustainability. The main reason for the ignorance is no pressure from investors regarding sustainable development.
Surface and groundwater are under stress in India. The main reason is the increase in Grossly Polluted Industry (GPI). GPI has increased by 136 percent between 2011 and 2018, according to States of India’s Environment (SEO) In Figures, 2019. Nearly Half of these GPIs are in Uttar Pradesh.
In 2015, leaders at United Nations (UN) agreed on 17 goals that would create a better world by 2030. Largely, these goals focus on ending climate change, eradicating poverty, and fighting inequality. United Nations believe that getting connected with the need is very important to efficiently conduct a sustainable business. Leaders of the company need to be aware of their surroundings and environmental degradation.
Innovation is the key to sustainability
Innovation comes with a sustainable approach. Turning into a sustainable business means changing business strategies. It will not turn companies' profits if they merely include sustainable development into business strategies. They must innovate their business strategies and include sustainability as a core principle in each of the strategies. The changes include empowering business leaders into board member into focusing on sustainable development and strategic planning product and services that gives out sustainable outcomes.
Sustainable business needs to embrace competition. When a competitor becomes openly sustainable it inspires others to follow in their footsteps. It’s about contributing to the welfare of the environment together.
If a business wants to be sustainable, it must educate itself on what sustainability actually means. A sustainable business should work on sustainability as their core principle, if they base their production on the basis of sustainability then they can really contribute to the concerns. A business that only has a superficial interest will go with whatever trending eco-friendly companies are doing. It’s not wrong to learn from eco-friendly companies but one must do proper internal research to find out what they can do to create a positive impact on the environment.
Global Companies Adopted Sustainable Development
Adidas, German-based sports equipment manufactures has already set landmarks in the sustainable business. Adidas is continuously working towards becoming a sustainable company. Including sustainable development into their strategy ‘Own the Game ‘, helped them to reduce total emission by 55% as compared to 2015. In 2020, companies accumulated water-saving reached 48% per employee compared to 2008. Companies like BMW, Disney, and HP are working hard to reduce the net emission and become more environmentally friendly.
Going sustainable not only helps the environment but also the company. Environment-sensitive companies carry a vision of care within themselves. Green initiatives not only help in reducing cost but also creates a positive image of the brand among the consumers. Consumers tend to buy more recyclable products now. By the year 2024, the global recycling service market is about to grow to 377 billion U.S dollars.
The figures are proof that companies are now focusing more on recycling products for sustainable business. It is not only cost-effective but also environmentally friendly. Companies like Nike, Levi’s have already established their recyclable product range and have received a great response from the consumers as well.
Sustainability is a healthy approach for the company and could be proven to be very profitable if the company’s strategy is properly aligned. Compliance should be kept before the competition when it comes to sustainable development. Recent BCG/MIT data shows that 44% of investors are diverse from the company because of the poor approach towards sustainable development.
Collaboration is considered to be critical in achieving sustainable development. MIT/BCG data indicates that 67 % of investors see sustainability as an area where collaboration is necessary. Transparency is very important in a sustainable business. Publish data that states the net emissions of the company and their efforts to reduce waste management makes the company accountable and creates a positive image among consumers.
Sustainable development is the need of the hour and if it is implemented to the core of every business the environment will be happy and healthy again. The business has all the great power to change the world through innovations and strategies. It is enormous reach, power, and workforce business is all ready to make the change the world needs to scale.