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MANAGE FOR MULTIPLE BENEFITS
Sustainability is…
7 ways sustainability is
smart business
Evidence shows that adopting sustainability
principles increases your competitive ...
1: It increases revenues and reduces expenses
7 Benefits to The Triple Bottom Line
1. Increased Revenue and Market Share
2...
Green consumers are less price
sensitive than average shoppers and
also shop more frequently
More than half of consumers
i...
3: Customers increasingly care about sustainability
“Brands that establish a reputation for
environmental stewardship amon...
0
10
20
30
40
50
60
70
80
90
100
Baby Boomers Millennials Generation Z Across All Generations
45
50
44
50
55 55
51
73 72
6...
4: Engaged employees increase your bottom line
• 10% increase in customer
loyalty/engagement
• 20% increase in sales
• 17%...
5: It reduces environmental impacts and risks
Lockheed Martin
Employee involvement efforts
$200,000 and 2,332 metric tons ...
Front-line employees are most likely to
identify areas of company inefficiency,
such as waste, water and energy
Losing a s...
“In total, 26 of the 29 studies (90%) find a relationship
which points to a reducing effect of superior
sustainability pra...
Bearse, S., Capozucca, P., Favret, L., & Lynch, B. (2009). Finding The Green In Today’s Shoppers: Sustainability Trends an...
For more information, go to
www.SustainabilityAllianceAZ.org
www.SustainabilityCertifications.org
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7 ways sustainability helps business

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Sustainability has been proven to be a smart business strategy. This presentation reviews the current research on how sustainable business practices improve competitiveness.

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7 ways sustainability helps business

  1. 1. MANAGE FOR MULTIPLE BENEFITS Sustainability is…
  2. 2. 7 ways sustainability is smart business Evidence shows that adopting sustainability principles increases your competitive advantage, decreasing your environmental footprint. Research conducted by NAU intern Todd Michael Traen—2016
  3. 3. 1: It increases revenues and reduces expenses 7 Benefits to The Triple Bottom Line 1. Increased Revenue and Market Share 2. Reduced Energy Expenses 3. Reduced Waste Expenses 4. Reduced Materials and Water Expenses 5. Increased Employee Productivity 6. Reduced Hiring and Attrition Expenses 7. Reduced Risks “the ‘triple bottom line’ can increase a typical company's profit by at least 51 to 81% within five years”
  4. 4. Green consumers are less price sensitive than average shoppers and also shop more frequently More than half of consumers interviewed consider sustainability level of company while shopping “Green consumers are more likely to show product loyalty” 2: Sustainably conscious consumers are willing to pay more
  5. 5. 3: Customers increasingly care about sustainability “Brands that establish a reputation for environmental stewardship among today’s youngest consumers have an opportunity to not only grow market share but build loyalty among the power-spending Millennials of tomorrow, too” - Grace Farraj, - Senior Vice President, Public Development & Sustainability, Nielsen 2014 Global Sales of Consumer Goods > 4% increase = sustainably committed brands < 1% increase = non-committed brands
  6. 6. 0 10 20 30 40 50 60 70 80 90 100 Baby Boomers Millennials Generation Z Across All Generations 45 50 44 50 55 55 51 73 72 66 Percentageofrespondents Willingness To Pay More From Socially & Environmentally Committed Companies 2012 2013 2014 2015
  7. 7. 4: Engaged employees increase your bottom line • 10% increase in customer loyalty/engagement • 20% increase in sales • 17% increase in employee productivity • 24 - 59% reduction in employee turnover • 70% reduction in safety incidents • 28% reduction in shrinkage • 41% reduction in absenteeism • 40% reduction in product defects (Percentage difference between top-quartile and bottom-quartile of surveyed employees on their workplace engagement) Businesses with highly engaged employees are 4 times more likely to have high performing employees
  8. 8. 5: It reduces environmental impacts and risks Lockheed Martin Employee involvement efforts $200,000 and 2,332 metric tons CO2 through energy management system – Camden, AR $300,000 & 2,511 metric tons CO2 through lighting upgrades – Orlando, FL $1.2 Million dollars, 11 million kWh electricity and 7,000 metric tons CO2 – Green IT department
  9. 9. Front-line employees are most likely to identify areas of company inefficiency, such as waste, water and energy Losing a strong employee costs companies between 70% – 200% of their annual salary Employee engagement leads to increased employee loyalty, company pride, and morale 6: Sustainability can improve employee retention
  10. 10. “In total, 26 of the 29 studies (90%) find a relationship which points to a reducing effect of superior sustainability practices on the cost of capital" “Firms with good sustainability standards enjoy significantly lower cost of capital” “Superior sustainability standards improve corporations’ access to capital” 7: Sustainability reduces the costs of capital, debt, & equity
  11. 11. Bearse, S., Capozucca, P., Favret, L., & Lynch, B. (2009). Finding The Green In Today’s Shoppers: Sustainability Trends and New Shopper Insights. Deloitte. Retrieved 16 June 2016 from https://www.gmaonline.org/downloads/research-and-reports/greenshopper09.pdf Clark, G. L., Feiner, A., & Viehs, M. (2015). From The Stockholder To The Stakeholder: How Sustainability Can Drive Financial Outperformance. University of Oxford and Arabesque Partners. Retrieved 16 June 2016 from http://www.longfinance.net/images/reports/pdf/arabesque_stockholdertostakeholder_2015.pdf Harter, J. K., Schmidt, F. L., Agrawal, S., Plowman, S. K., & Blue. A. (2016). The Relationship Between Engagement at Work and Organizational Outcomes, Q12 Meta-Analysis: Ninth Addition. Gallup Inc. Omaha, NE. Retrieved 16 June 2016, from http://www.gallup.com/services/191558/q12-meta-analysis-ninth-edition-2016.aspx Lubin, D. A. & Esty, D. C. (2010). The Sustainability Imperative. Harvard Business Review. Retrieved 16 June 2016 from https://hbr.org/2010/05/the-sustainability-imperative National Environmental Education Foundation (2010). The Business Case for Environmental & Sustainability Employee Education. Retrieved 16 June 2016 from https://www.neefusa.org/resource/business-case-environmental-sustainability-employee-education The Nielsen Group, Global Sustainability Report (2015). The Sustainability Imperative – New Insights on Consumer Expectations. Retrieved 16 June 2016 from http://nielsen.com/content/dam/corporate/us/en/reports-downloads/2015-reports/global-sustainability-report-oct-2015.pdf Willard, Bob. The New Sustainability Advantage: Seven Business Case Benefits of a Triple Bottom Line. Gabriola Island, British Columbia: New Society Publishers, 2012. Print References
  12. 12. For more information, go to www.SustainabilityAllianceAZ.org www.SustainabilityCertifications.org

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