When it comes to making sustainable choices for our personal life, we are happy to choose organic, natural, and environmentally safe products. But do we do the same for our businesses? Do we compromise on the cost factor for making wise choices that favor our environment? Do we think about our future and the future of our upcoming generations while making such decisions? Well, ‘not always.’ Sometimes, we unintentionally overlook certain factors of going green. Other times, we are left with narrow choices to choose between our profit margins and sustainability parameters.
To view this scenario from a broader perspective, making choices with multi-generational impact is actually more profitable in the long run. A business constructed and operated in this way is termed as enkelfaehig. Let’s learn more about these kinds of businesses and what their promising effects are.
Components of an enkelfaehig business
To ensure that the future generations can share and maintain our current business success, the following components are essential to be incorporated in every business.
- Sustainability: Making business green and resource-friendly to contribute to the keeping the planet livable.
- Profit: Making long-term profit by investing in sustainable business choices.
- Compliance: no compromise.
- Strategy, execution, and talents: Development of the right strategies, their proper and timely execution, and utilizing the best talents to have a win-win policy.
Importance of making earth-first business choices
In addition to the virtuous side of making eco-friendly business policies, their necessity is clear from the facts and figures mentioned by the scientific journal Environmental Sustainability, as given below.
- Around 27 billion tons of solid waste generation has been estimated by 2050 if the business entities continued to operate in the same way as they are operating now for profit-focused production and turnover of products. It will also result in the extinction of many species by the end of this century.
- The high emissions of carbon dioxide and other undesirable gases are largely contributing to global warming. The current rate has been estimated to cause a temperature rise of two degrees Celsius by 2050, which will result in rising in sea levels and weather calamities.
- Environmental Sustainability has also mentioned the presence of an island of plastic floating in the Pacific Ocean that is twice the size of Texas. Not only the aquatic life is in danger due to it but also the micro-plastics are getting consumed by humans in the form of seafood. Even as simple as plastic bottle waste can generate a huge amount of plastic load on the environment.
Exploring it further, the New Climate Economy report has mentioned that 95% of plastic packaging is subjected to no purposeful utilization after first use. This is disposed of in various forms that affect various species. For example, the presence of micro-plastics have been observed in 114 marine species.
What benefits do enkelfaehig businesses offer?
Climate-oriented minimal-trace corporate policies directly affect people’s physical and mental health, and favor a clean and peaceful environment for everyone to live in. It is also essential for the survival of the fauna and flora of our planet. Besides offering emotional fulfillment, sustainable corporate choices offer plenty of benefits in terms of revenue generation. When you are benefiting society and the environment through your company policies, you attract better investors and rebates or appreciation rewards from higher authorities that contribute to long-term profitability.
Establishes higher brand image
Consumer choices have largely changed in this modern era. Being more socially connected and environmentally aware, they select goods and services that are beneficial from multiple angles. Business organizations with low carbon footprints and symbiotic behaviors always hold an eminent place in the market. Such businesses do their promotional marketing also from a sustainability angle and are able to attract more investors and funds. Green choices ultimately become their brand identity which substantially adds to their overall turnover. As proved by Natural Marketing Institute survey, more than 50% of the consumer market admits that environmental safe practices of an organization influence their buying decision. Also, such practices attract better manpower which, again, is the key to success of an enterprise. After all, who doesn’t want to join energy-efficient and eco-oriented business corporations?
Escalates Production with minimal consumption of perishable resources
The New Climate Economy report mentions an overall $26 trillion in economic benefits if businesses as well as governmental sector prioritize adopting climate-friendly strategies and low to zero waste technologies.
When you handle your energy resources critically, you save a lot by cutting the cost of expenses and minimizing waste disposal. Even as simple as fixing dripping taps and pipes can save up to ten thousand liters of water over a year. Installing eco-friendly systems, especially in high-consumption corporations, can go a long way in reducing their expenses.
Offers a competitive edge
The resource-friendly businesses get a competitive advantage in terms of holding prominent repute and making higher sales. Moreover, being more compliant with the environmental regulations offered by the state also brings its own benefits.
Surveys mention that 87% of American consumers are more likely to choose products of a company that has advocated for an issue they care about while 73% of them would stop giving business to a company that is not concerned about climate change.
The buyer views earth-friendly nature of an organization as a big plus and shows willingness to compromise over negligible factors (such as monotonous packaging) while buying its products. Resultantly, such organizations capture larger spaces in market shelves and make higher gains.
Greening your business is a community-focused and eco-friendly decision that is pivotal to save the planet from devastating effects of industrial pollution and resource depletion. Not only does it seem an act of service to do but also has it become the need of the hour for the protection and growth of our predecessors. New Climate Economy report recommend that industries need to drop carbon emissions by 40% by 2060 to cease the rise of temperature by two more degrees.
Though it may require you a substantial initial investment, it is going to increase your financial revenue in the long run. Considering the unceasing benefits including reduced taxes and overhead costs, the earth-friendly businesses result in overall higher profit margins.
- Arora, N.K. Environmental Sustainability—necessary for survival. Environmental Sustainability 1, 1–2 (2018). https://doi.org/10.1007/s42398-018-0013-3 URL: https://link.springer.com/article/10.1007/s42398-018-0013-3#citeas
- Smith, Madeleine et al. “Microplastics in Seafood and the Implications for Human Health.” Current environmental health reports vol. 5,3 (2018): 375-386. doi:10.1007/s40572-018-0206-z URL: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6132564/
- Urgent Times. Doi- 10.13140/RG.2.2.23326.28488 URL: https://newclimateeconomy.report/2018/
- Unlocking the Inclusive Growth Story of the 21st Century: Accelerating Climate Action in Urgent Times. Doi- 10.13140/RG.2.2.23326.28488 URL: https://newclimateeconomy.report/2018/
- 5 benefits of becoming a sustainable business. URL: https://www.smallbusinessbonfire.com/sustainable-business-2/
- 2017 Cone Communications CSR Study. URL: https://www.conecomm.com/research-blog/2017-csr-study