Business leaders still concerned about profit loss attributed to sustainable operating practices should rest a little easier. Companies that are resource efficient tend to perform better financially than their less-sustainable competitors.
The assumption is that although corporate sustainability is good for public image or a niche market, it ultimately leads to diminished investment returns. But Global investment firm Osmosis Investment Management has the numbers to show this is not the case.
Osmosis’ website indicates some reasons that sustainable corporate practices translate to financial success: “We add 1 billion eager, aspiring, hungry, demanding new people every twelve years. Demand for key resources will increase by 50% increase before 2030.” Sustainability makes good business sense because it responds to real global needs.
The demand for more responsible and sustainable business operations, products and services is already there. It’s up to forward-thinking corporate leadership to supply them.
Harvard Business Review blogger Gerrit Heyns also notes corporate sustainability “is a leading indicator of economic performance.” The same decision-makers who recognize the “imperatives brought about by resource constraint” are the ones who understand the market and make sound judgments regarding their companies’ direction.
We’ve already seen that green companies see increased productivity at least in part because of the company’s open-mindedness to change. This mindset means an organization can attract more and better employees and keep morale high. It isn’t just about environmental sustainability; it’s about staying power.
Consumer and investor demand for transparency and communication is a driving force behind resource efficiency. No longer is sustainability an obstacle or even really an option–the companies that will end up on top are the ones that respond to this global need.
This is the kind of competition that pushes innovation and benefits everyone. The only question left is: who will lead the way?
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