Find out why more than half of top-level executives from over 700 organizations worldwide are redesigning their business to be more sustainable and learn how you can make your company more sustainable in 3 actionable steps.
Did you know that over 80% of consumers are willing to pay more for sustainably produced or sourced goods (PwC, 2024)?
Despite the rising cost of living, consumers are willing to spend 9.7% more on sustainable products, looking at categories such as “production methods and recycling (40%), eco-friendly packaging (38%), and making a positive impact on nature and water conservation (34%)” (PwC, 2024).
Sustainability is not a want, it’s a need – with numbers showing that in 2023, both consumers and businesses across the globe started taking sustainability more seriously.
Research shows that 57% of top-level executives from over 700 organizations worldwide are redesigning their business to be more sustainable.
Take the example of the research done by Capgemini Research Institute. They interviewed over 2000 senior executives from over 700 top-level organizations in 13 countries and saw the collective shift in seeing the positive impact of sustainability over the costs. Research shows that 57% of top-level executives from over 700 organizations worldwide are redesigning their business to be more sustainable. But why?
(This infographic from Capgemini (2023) shows the significant jump in how executives worldwide view sustainability in business)
Well, for one – people are ready to spend. In the UK, consumer spending level has reached its record high, with a 2019 survey revealing (Smithers, 2019) that “the total market for ethically and sustainably sourced goods— including food, drinks, clothing, energy, and eco-travel— was worth £41bn. Its value has risen almost fourfold within 20 years.”
Another study done by NYU Stern’s Center for Sustainable Business between 2013 and 2019 revealed that more than 50% of growth came from sustainable products.
In recent years, more companies started taking sustainability seriously. In 2024, 52% of organizations will increase their investments in sustainability, with 61% of organizations viewing the absence of sustainable practices as an existential threat (Capgemini, 2024).
“In 2024, 52% of organizations will increase their investments in sustainability, with 61% of organizations viewing the absence of sustainable practices as an existential threat”
Companies failing to become more sustainable are risking extinction, while their sustainable competitors are likely to receive more investment opportunities.
“Brands that deliver on pursuit of purpose, that drive a culture of sustainable innovation, are the front runners in consumers’ eyes – and they are watching.” – Christianne Close, Global Marketing Practice Leader, WWF International.
Despite the growing consumer preference for companies that actively measure and reduce their environmental impact, most companies still struggle with it – especially with sustainability reporting and sustainable product design (Capgemini, 2023).
A lack of proper reporting has some serious risks:
The Deepwater Horizon Oil Spill disaster in 2010 with British Petroleum (BP) was a prime example of inadequate measurement and management of environmental risks related to deep-sea drilling. Millions of oil barrels were released into the Gulf of Mexico, which resulted in over a $20 billion fine, settlements, cleanup costs, and significant reputational damage.
Volkswagen’s Diesel Emissions scandal. By installing software in their vehicles Volkswagen cars appeared more environmentally friendly than they were. The scandal resulted in hefty fines of over $30 billion and long-term damage to the company’s reputation.
There’s also a risk of:
Inefficient resource use and waste management increase costs. Measuring your environmental impact can decrease them, improving your company’s efficiency.
85% of investors considered Environmental, Social, and Governance (ESG) criteria in their investment in 2020 (Swetha Venkataramani, 2021). We explained what ESG is here.
Nearly 70% of people are more likely to stay with a company long-term if it has a clear sustainability plan.
40% of respondents stayed with a company solely because it performed better on sustainability than others. And 30% said they left a job in the past because of the lack of sustainability goals. This highlights the importance of putting sustainability at the forefront of what you do, not only for financial reasons but also for employee retention.
So how do you start?
Start with learning about your business’s current state. How does your business make an impact on the environment?
Look into product carbon footprinting. Product carbon footprint (PCF) assessment measures the CO2 that your products cause and “release” in the atmosphere. Knowing which part of the production process causes those emissions, and how much you emit will help you make choices that reduce said emissions as much as possible.
Carbon Footprint = Climate Change. Carbon footprint directly relates to climate change. It helps you understand where you’re polluting the most and how to pollute less. Pollution can come from anywhere (energy, product materials, transportation, packaging), so knowing your carbon footprint will help you make further improvements and naturally guide you in the right direction, giving you steps to take to become more sustainable.
We wrote more about the benefits of carbon footprint assessments here.
2. (Roughly) Define Your Goals
What do you want to achieve? Is your focus on the environment? Credibility and competitive edge? Or compliance?
It could also be all 4.
A common scenario we see with our Ecochain Mobius clients is that they want to:
3. Seek Support From an Outside Source
Research companies that can help you achieve your goals. This is what you want to look into, depending on your goals:
Unlike most software on the market, Ecochain Mobius helps you become self-sufficient in your carbon footprinting journey through an intuitive interface, so you don’t have to rely on expensive consultants’ services forever. Soon after the initial introduction, you can take full ownership of your carbon and navigate the software on your own. And if you ever need help, our specialists are always available to guide you through the process–to help you feel confident about your results.
Mobius helps you create carbon footprint reports and share them with stakeholders.
Learn about Ecochain Mobius here:
Durand-Hayes, S. (n.d.). Voice of the Consumer Survey 2024: Shrinking the consumer trust deficit. PwC. https://www.pwc.com/gx/en/issues/c-suite-insights/voice-of-the-consumer-survey.html
Kronthal-Sacco, R., Whelan, T., & NYU Stern Center for Sustainable Business. (2019). Sustainable Share IndexTM: Research on IRI purchasing data (2013-2018). https://www.stern.nyu.edu/sites/default/files/assets/documents/NYU%20Stern%20CSB%20Sustainable%20Share%20Index%E2%84%A2%202019.pdf
Peters, A. (2019, February 4). Most millennials would take a pay cut to work at a environmentally responsible company. Fast Company. https://www.fastcompany.com/90306556/most-millennials-would-take-a-pay-cut-to-work-at-a-sustainable-company
PricewaterhouseCoopers. (n.d.). Consumers willing to pay 9.7% sustainability premium, even as cost-of-living and inflationary concerns weigh: PwC 2024 Voice of the Consumer Survey. PwC. https://www.pwc.com/gx/en/news-room/press-releases/2024/pwc-2024-voice-of-consumer-survey.html
Smithers, R. (2020, September 23). UK ethical consumer spending hits record high, report shows. The Guardian. https://www.theguardian.com/environment/2019/dec/30/uk-ethical-consumer-spending-hits-record-high-report-shows
Sustainability trends 2023 – Capgemini. (2024, March 25). Capgemini. https://www.capgemini.com/insights/research-library/sustainability-trends-2023/
Venkataramani, S. (2021, June 10). The ESG Imperative: 7 Factors for finance Leaders to consider. Gartner. https://www.gartner.com/smarterwithgartner/the-esg-imperative-7-factors-for-finance-leaders-to-consider
