Policy & Compliance
new customers and an opportunity to reach new markets. And if the partnership is underpinned by the common goal of sustainability, it makes it all the more likely that these companies will invest in long-term growth, progression and development together. The UN’s Sustainable Development Goals (SDGs), currently adopted by thousands of companies through the UN Global Compact (https://unglobalcompact.org/) alone, are all underpinned by the 17th Goal — ‘Partnerships for the Goals’. Driving investment According to a study by Charles Schwab, which surveyed 1,000 individual investors, as many as 71% thought that companies with good sustainability strategies make good investments. In addition, 44% of respondents said that they consider environmental, social, governance (ESG) factors when making a new investment. The number of investors looking to put their money into sustainable companies has grown significantly over the past 10 years. The creation of the Principles of Responsible Investment (PRI) supports this upward trend and is supported by the United Nations. Improving pro fi t margins Companies that measure their carbon footprint are able to identify their top emitters and take the appropriate action. Often, this activity has a direct positive impact on profit margins due to the increased efficiencies that it generates. They result in fewer wasted miles, and fewer routes with empty or partially empty loads, leading to significant cost savings. Making business sense Sustainability does not mean sacrificing profits or putting success on the backburner. Instead, it has become a crucial element of any organisation’s successful strategy. It enables companies of all sizes to build competitive advantage, meet their customers’ demands, win over investors and improve profit margins.
How sustainability can support business growth
Continuing the series of guest articles, this month Pledge investigates the link between embracing a sustainability programme and business growth
B IFA Members have a key role to play in the fi ght against climate change, as the shipments they make impact a signi fi cant proportion of the industry’s emissions. This is why new legislation is coming into force across the UK and EU, which will require organisations of all sizes to report on their carbon emissions and what they are doing to reduce them. But while it is clear that taking climate action as a business is good for the planet, there is also another significant benefit — and that is sustainability’s contribution to a business’ ongoing success. The triple bottom line More companies are taking the triple bottom line approach, which means that they are focusing on more than just profits... they are also measuring and addressing their environmental and societal impact. These are sometimes referred to as the ‘three Ps’: people, planet and profit. The triple bottom line was first introduced by entrepreneur and business writer John Elkington in 1994 while at the think-tank SustainAbility. Companies that embraced the approach soon began to notice an increase in new business opportunities.
Sustainability can help businesses win more tenders Sustainability has a direct impact on the reputation of many businesses and is becoming a key contributor to their development. Studies have shown that consumers have become more conscious about the type of products that they buy and the way in which their suppliers operate. The Global Sustainability Study 2021, conducted by Simon-Kucher & Partners, reveals that 85% of people globally have shifted their purchasing behaviour towards being more sustainable in the past five years. This places pressure on retailers and forwarders to evaluate their supply chains to ensure that they are offering more sustainable delivery options. This explains why business cases and contract tenders are increasingly demanding emissions data. Boosting business growth Effective partnerships are also a key driver of business growth and have been a core part of sustainability strategies for a number of years. A strong partnership can mean access to
“ Sustainability does not mean sacrificing profits or putting success on the backburner. Instead, it has become a crucial element of any organisation’s successful strategy
May 2023 | 21
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