The sustainable business model is evolving
And while these are already fairly compelling numbers, we also know that we are still at that inflection point. This topic is exponentially growing in importance, and soon sustainable product offerings will become the expectation rather than the exception.
Regulation and cost factors The most pressing push factor is the growing regulation in this space. We have classified this as a push factor as there could be tangible negative effects on business operations if it is not taken into account. More and more governments, international NGOs, and international regulatory bodies are requiring companies to provide clarity on their environmental impact and sustainability efforts. While these regulations are currently more focused on transparency, they provide the foundation for both informed decision- making by consumers and accountability via future regulations. This accelerates the second push factor – the need to act fast. Delays in developing more sustainable business practices come at a considerable cost. Carbon permits and green bonds (two of the regulatory tools that have been developed to keep companies accountable) have only become more expensive as they become more established. Companies will have to take these factors into consideration as they increasingly affect their bottom line.
Growing consumer expectations On the other side, the main pull factor is the growing expectations from consumers to have product options that are environmentally sustainable. Our annual Global Sustainability Study found that 75% of consumers said environmental sustainability was important to them when considering purchases. Two-thirds of respondents said it was a top value driver in their decision-making process, and a third of consumers would be willing to pay more for a sustainable alternative.
Stepping forward You may be at the start of your sustainability journey, or you may be ready to level-up. One thing is certain: You must be ready to embrace change. How you do this will be unique to your business but understanding what your consumers expect from you is the best place to start. Knowing how habits are changing will be the key driver for establishing new goals, processes, and logistics. You may need to adjust the way you do business. But you’ll minimize risk and win customer loyalty along the way.
75 % Of consumers said
environmental sustainability was important to them when considering purchases.
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Two-thirds of respondents said it was a top value driver in their decision- making process.
A third of consumers would be willing to pay more for a sustainable alternative.
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Environmental sustainability in business
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