Three reasons why a sustainable business is likely to thrive in 2023
While we observe an increasing number of companies adopting more thoughtful commitments, others are still hesitating. Yet, there are many reasons for a company to transition.
The gradual arrival of government regulations, the increasing amount of international sustainability goals and frameworks, the rise of temperatures, the pressure from business partners and many more. Here are three major reasons and their explanations that might inspire you to make the leap to sustainability:
Reason 1: The cost of fossil fuel
Because of the current geopolitical context and the scarcity of fossil fuels, their prices have become extremely volatile. an alternative to these environmentally impacting and increasingly expensive sources of energy are renewable energies.
If renewables have a smaller ecological footprint, they also appear to be more advantageous in many cases.
Among the most profitable renewable energy sources are solar and photovoltaic energies.
Reason 2: The trust of consumers
Consumers are likely to buy their goods and services from companies that are thoughtful of their impact on the environment and society. It has been proven that this caring attitude results in consumers and society trusting the company.
Patagonia perfectly embodies the example of a brand that has conquered the hearts of its consumers through sustainable claims and practices. This is a fine example of a reputation brought about by an ethical and environmental identity.
In contrast to this example, some fast-fashion brands are subject to public release. A backlash linked to their very dubious socio-environmental practices.
Reason 3: The attraction of investors
It is well known that investors have a central role to play in the orientation of financial products. Companies envious of new investors are bound to realize that the demand for sustainable investment plans is growing.
A growing interest in so-called Environmental Social and Governance (ESG) compliant products has been identified by numerous studies. The Dow Jones study expects, for instance, that this demand will double by 2025, accounting for 15% of all investments.
This shift in investment priorities reflects investors’ willingness to support thoughtful companies while maximizing their savings on the long term.