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

1. MANAGE FOR MULTIPLE BENEFITS
Sustainability is…

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. 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. 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. 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. 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. 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. 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. 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. “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. 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. For more information, go to
www.SustainabilityAllianceAZ.org
www.SustainabilityCertifications.org