In a recent survey by IBM, 51% of respondents from 10 major economies of the world said that environmental sustainability is more important to them today than it was in 2021. With this shifting perspective on sustainability, business leaders are facing the real challenge of securing the bottom line for their companies. Besides, ESG agenda and sustainability have become key considerations for modern businesses. Hence, it is vital to understand why is sustainability important in business.

What is Sustainability in the workplace?

ESG and sustainability are two related but distinct concepts. While both ESG and sustainability are concerned with environmental, social, and governance factors, Sustainability is the practice of operating a business in a way that meets the economic, social, and environmental needs of the present without compromising the ability of future generations to meet their own needs and ESG is a measured assessment of sustainability using benchmarks and metrics.

Why Sustainability is Important in Business?

Organizations that embrace ESG, therefore, can demonstrate their dedication to the greater good, an increasingly attractive proposition for employees demanding a sense of mission from their workplace. As more and more potential employees (and customers and investors) shun businesses that are not committed to building a sustainable future, demand for firms to take a stance on the environment is expected to only grow.

For example, according to a recent IBM survey, 49% of consumers say they’ve paid a premium for products branded as sustainable or socially responsible in 2021. Let’s dig deeper into the reasons why sustainability is important in business:

1. Impact on People

Businesses that follow sustainable practices care more about their employees, customers, and society in general. It helps the company grows as people in general is one of the main factor deciding the exist of the organization. For example, 70% of British millennials say they would stay with a company with a robust sustainability plan.

2. Protect the Environment

It is obvious that organizations that follow sustainability tend to protect nature and make conscious efforts to conserve natural resources. This helps enhance the image of the business in the eyes of customers and other stakeholders. For example, 48% of executives prioritize reducing the negative impact on the environment while reducing costs.

3. Competitive Advantage

It isn’t surprising to find the names of established companies on the front pages of newspapers for following crude business practices, such as polluting the environment, negligence of human rights, and more. On the other hand, businesses that actively practice a sustainable approach gain a competitive advantage. For example, 80% of executives believe having a purpose beyond profits helps businesses increase customer loyalty.

How do we Promote a Sustainable Work Environment?

It starts with awareness. Let your employees do then inspire people around them. Beforehand, as a leader, you must be a pioneer in promoting a sustainable lifestyle. Ask yourself these 3 questions:

1. Are your ESG commitments clear for everyone in your company? Keep in mind that all the changes in your company policy or rules must be updated and reminded always so that they know clearly your company’s expectations of them.

2 . Did you implement any practices at work that encourage your team toward a sustainable lifestyle? It’s important to model the way. Make your practice a non-negotiable, for example, if your goal is to limit the use of plastic bottles, you can give reusable bottles, put a refill station in the office, order drinks in reusable jars, etc. Making these practices more compelling and exciting is more likely to motivate people to protect the environment.

1. Have you ever organized a team building that helps your company step closer to the environment? Let them experience the reality of land pollution in Vietnam by organizing practical teambuilding activities. If you are looking for an idea, here is what “Sustainable Workplace teambuilding” at TYDE looks like.

If your company starts strategizing on how to drive change in the workplace and beyond, contact TYDE so that we can help you move closer to your goal.