Businesses need to care about environmental sustainability for a variety of reasons, including consumer demand, governmental and investor pressure, talent retention, and ensuring that the planet can support life. In order to stay competitive, businesses must make sure they are doing their part to preserve the planet.
Here are five reasons why businesses should take efforts to be more sustainable—and how IP Consulting can help.
Why Should Your Company Become More Sustainable?
1. Consumer Demand
More and more consumers are considering climate action when making their purchasing decisions, which means businesses should care about the environment if they want to retain and attract customers.
According to a study of more than 10,000 people in 17 countries by international strategy and pricing consultancy Simon-Kucher & Partners, consumers all over the world are increasingly using environmental sustainability to influence their purchasing decisions. Many consumers choose to act as climate change agents, and want to believe that for-profit businesses are as well. This makes it even more important for business and IT leaders to care about sustainability.
How much do consumers actually care? Well, 34% of respondents, or one-third, are willing to pay more for environmentally friendly options.
2. Employee Demand
Companies that show concern for environmental, social, and governance (also known as “ESG”) issues may find it easier to attract and retain employees in a time when widespread talent shortages are a reality.
According to a study published by IBM’s Institute for Business Value (IBV), environmental sustainability has gained importance for more than 51% of consumers and employees.
Even the jobs that candidates prioritize or accept are influenced by sustainability.
In fact, two out of every three respondents said they were more likely to apply for and accept a job (67%) if they thought the company was environmentally sustainable. For businesses that put the environment and people first, that percentage increased to 80%. However, only 21% of survey participants thought their current employers were sustainable. That poses a significant risk in a talent-driven market.
The IBM IBV study found that one in three people who quit their jobs in the past year transferred their skills to a company they thought was socially or environmentally conscious (35%) or sustainable (40%) in its operations. One in three of those job changers had a role where they could have a direct impact on environmental sustainability.
Additionally, a similar proportion of people who took on a new position in the previous year chose to forgo a higher salary in exchange for the chance to work for a company that prioritizes sustainability or social responsibility.
3. Governmental Pressure
Legislation to promote climate action is growing, and it ranges from the punitive—like taxes on plastic—to the motivating—like clean energy incentives in the Inflation Reduction Act.
Governments are now much better at responding to environmental crises, and not just in general terms like net zero plans for the far future. They are creating policies such as integrated ESG reporting requirements for big businesses and expanded carbon tax frameworks.
4. Investor Demand
Investors are among the stakeholders who are most vocal about expecting businesses to care about the environment. Since COVID-19, investor attention to climate issues has only grown, and given the other factors that are driving up investor attention to environmental issues, this trend is only expected to continue.
For instance, according to the Global Institutional Investor Survey, about 74%, or nearly three-quarters of institutional investors, said they were more likely to divest from companies with poor environmental sustainability and ESG track records. Companies must become more strategic about ESG by, among other things, being more strict about materiality, better aligning with finance, and understanding climate risk disclosures. Pressure for better climate disclosure is also rising.
5. To Keep Our Planet Alive
News stories about how biodiversity loss and disasters are already being brought on by climate change often cause panic and a strong desire to binge-watch movies or otherwise avoid thinking about the difficult steps that need to be taken to combat global warming. However, this is a crucial element at its core.
For-profit businesses are essential to help stop global warming from exceeding 1.5 degrees Celsius (compared to pre-industrial levels) and to achieving the goals set forth by the Paris Agreement. Exceeding this increase will result in more extreme heat waves, droughts, fires, and weather conditions like hurricanes.
It’s challenging to imagine an industry that won’t be impacted, and that’s especially true for industries that depend on supply chains, are global, or use data centers, to name a few. Nobody is exempted.
According to a report released by the World Economic Forum in January 2020, more than half of the global GDP, or $44 trillion, is highly dependent on nature and is therefore at risk when nature loss occurs.
How Can IP Consulting Help Your Business Become More Sustainable
At IP Consulting, we place a high value on minimizing our company’s carbon footprint. As a result, we offer our Take Back and Reuse Program, a free service that allows businesses to safely and sustainably dispose of outdated equipment.
Through this program, your business can schedule an easy equipment pickup that is Cisco branded. All equipment that is picked up is returned to Cisco and decommissioned in an environmentally safe way that complies with all applicable regulations.
Our Take Back and Reuse Program recycles and repurposes 99.9% of the material that is returned, which can assist our businesses in achieving their sustainability objectives while also ensuring the equipment is disposed of responsibly. Use our Take Back and Reuse Program knowing that you’ve made the right decision for the environment and everyone who calls the Earth home.
At IP Consulting, we recognize the value of effective, economical team solutions. We will connect you with a solution specifically designed for your organization and ensure a smooth implementation and adoption using our in-depth knowledge and skilled engineers. For help streamlining your business, contact us right away.