Environmental sustainability impacts not only the survival but also growth of every organization. In fact, sustainability-focused companies have seen better financial results relative to their peers.

Embracing sustainability uncovers opportunities well beyond efficiency and compliance. Companies will win shareholder trust and gain competitive advantage. A survey by Forrester Research indicated sustainability was the top priority for businesses. And 80 per cent surveyed said that implementing sustainability was a key goal for them.

For 70 per cent of respondents, attracting customers who make purchasing decisions based on sustainable corporate values was a key in introducing these initiatives. Nearly half said their organization has a long-term goal of reducing energy consumption across its portfolio of buildings by at least 50 per cent.

The research also stated that the return on investment of sustainability extends far beyond goodwill. Sustainably engaged companies witness benefits from improved efficiencies (96 per cent), improved compliance (95 per cent), improved employee recruitment and/or retention (90 per cent), and reduced waste (90 per cent).

A lot of them see benefits from improved brand reputation (89 per cent), decreased costs (89 per cent), improved customer acquisition and/or loyalty (86 per cent), and revenue growth (83 per cent).

Onboarding companies

Companies are realizing the competitive advantage that sustainability can deliver and they are looking to set themselves apart by committing to decarbonization. Having a well-orchestrated sustainable transformation drives competitive advantage and benefits all stakeholders. With COP28 being hosted in UAE, a strong sustainable portfolio can contribute to the country’s Net Zero goals.

For many mid-market businesses keen to embrace more sustainable business practices, the challenge lies in understanding what actions to prioritize, and how to incorporate the likes of carbon reduction, diversity, and social responsibility most effectively into business models.

In the same context, here are some key notes that businesses should keep in mind while driving through their sustainability journey:

Embrace social responsibility that is aligned with your business model to strengthen your operations and make a remarkable social impact.

Create a dedicated sustainability function in the organization and appoint a taskforce with the right expertise to lead it, which is also responsible for creating a culture around sustainability across the organization

Increase transparency of the corporate sustainability initiatives and make it a practical and actionable item for all the workforce in your organization.

Have Sustainability as a performance evaluation KPI for the organization’s leadership team

Work with like-minded organizations or utility partners to improve the use of clean energy. Audit current partners to ensure they meet sustainability practices.

Measure and monitor the carbon footprint of your products and operations. It is important to quantify your decarbonization initiatives along with your financial analysis.

Improve energy efficiencies in your buildings and workspaces. Engage the workforce to volunteer around key impact areas.

Invest in impactful technology and partners that enhance your sustainability initiatives.

Connecting sustainability to a core purpose will not only help you turn your business into a competitive advantage, but also help you reimagine it. Assess opportunities and cascade sustainability throughout the organization.

Identify metrics and methods to assess the impact of your firm’s sustainability initiatives. Factors to measure include reducing operating costs by efficiently using energy, power, lighting, and water resources, and enabling sustainable operations.

Focus on increasing the use of certified and trusted sustainable partners that meet requirements for using sustainable raw materials and resources. And last, give it a start and establish your roadmap to march towards sustainability…

Rohan Chopra

The writer is Head of Sustainability, Services and Solutions, Johnson Controls.