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Sustainable business not only brings sustainable products to the market but works in a way that does not harm the environment. Earth is desperately in need of sustainable management. This blog explains the need for sustainability and the brand that is already making the difference. #ThinkWithNiche
The
increasing awareness about environmental degradation led to an upsurge
of sustainable businesses. A sustainable business often termed a green
business, is an enterprise that has very little negative impact on the
environment. It means the focus of this business is not just fulfilling
customer needs but also keeping the environment in check.
The shift of marketing strategy has played a significant role in the
growth of sustainable business. The traditional market concept, commonly
referred to as the production concept, stated that consumers will buy
relatively cheap products. As society progressed the customer preference
grew from cheap prices to quality goods. Currently, most companies work
under the Marketing and Social Marketing concept.
Sustainable Products- Demand of Consumers
The
developing consumer taste and preference required companies to analyze
the taste and preference of the consumer and made their product
according to the need of the consumer. Increase global awareness among
the consumer class and daily highlights of companies disposing their
waste in water bodies or burning it down, adding to environmental
pollution, shifted consumer preferences. Consumers are now more inclined
to the products that come from a green company.
India has a potential for 720 million job opportunities and $1 trillion
worth of business opportunities by 2030 for companies working in
sustainable development space, said CEO, United Nations Global Impact
(UNGC) . The areas where such gains are possible are food and
agriculture, energy, cities, construction, and health, he further added.
62% of executives consider that it’s important to have a sustainable
strategy to be competitive. Many global leading corporates have taken
initiative to illustrate what sustainable development looks like.
In a country, consisting of the world’s seven most polluted cities,
sustainable business is a necessity. Though many companies consider
environmental safety as important as profits, some still neglect the
necessity to change and adapt. According to a survey by Global Compact
Network India, Indian companies are not focused on core sustainability.
The main reason for the ignorance is no pressure from investors
regarding sustainable development.
Surface and groundwater are under stress in India. The main reason is
the increase in Grossly Polluted Industry (GPI). GPI has increased by
136 percent between 2011 and 2018, according to States of India’s
Environment (SEO) In Figures, 2019. Nearly Half of these GPIs are in
Uttar Pradesh.
In 2015, leaders at United Nations (UN) agreed on 17 goals that would
create a better world by 2030. Largely, these goals focus on ending
climate change, eradicating poverty, and fighting inequality. United
Nations believe that getting connected with the need is very important
to efficiently conduct a sustainable business. Leaders of the company
need to be aware of their surroundings and environmental degradation.
Innovation is the key to sustainability
Innovation
comes with a sustainable approach. Turning into a sustainable business
means changing business strategies. It will not turn companies' profits
if they merely include sustainable development into business strategies.
They must innovate their business strategies and include sustainability
as a core principle in each of the strategies. The changes include
empowering business leaders into board member into focusing on
sustainable development and strategic planning product and services that
gives out sustainable outcomes.
Sustainable business needs to embrace competition. When a competitor
becomes openly sustainable it inspires others to follow in their
footsteps. It’s about contributing to the welfare of the environment
together.
If a business wants to be sustainable, it must educate itself on what
sustainability actually means. A sustainable business should work on
sustainability as their core principle, if they base their production on
the basis of sustainability then they can really contribute to the
concerns. A business that only has a superficial interest will go with
whatever trending eco-friendly companies are doing. It’s not wrong to
learn from eco-friendly companies but one must do proper internal
research to find out what they can do to create a positive impact on the
environment.
Global Companies Adopted Sustainable Development
Adidas,
German-based sports equipment manufactures has already set landmarks in
the sustainable business. Adidas is continuously working towards
becoming a sustainable company. Including sustainable development into
their strategy ‘Own the Game ‘, helped them to reduce total emission by
55% as compared to 2015. In 2020, companies accumulated water-saving
reached 48% per employee compared to 2008. Companies like BMW, Disney,
and HP are working hard to reduce the net emission and become more
environmentally friendly.
Going sustainable not only helps the environment but also the company.
Environment-sensitive companies carry a vision of care within
themselves. Green initiatives not only help in reducing cost but also
creates a positive image of the brand among the consumers. Consumers
tend to buy more recyclable products now. By the year 2024, the global
recycling service market is about to grow to 377 billion U.S dollars.
The figures are proof that companies are now focusing more on recycling products for sustainable business. It is not only cost-effective but also environmentally friendly. Companies like Nike, Levi’s have already established their recyclable product range and have received a great response from the consumers as well.
Conclusion
Sustainability
is a healthy approach for the company and could be proven to be very
profitable if the company’s strategy is properly aligned. Compliance
should be kept before the competition when it comes to sustainable
development. Recent BCG/MIT data shows that 44% of investors are diverse
from the company because of the poor approach towards sustainable
development.
Collaboration is considered to be critical in achieving sustainable
development. MIT/BCG data indicates that 67 % of investors see
sustainability as an area where collaboration is necessary. Transparency
is very important in a sustainable business. Publish data that states
the net emissions of the company and their efforts to reduce waste
management makes the company accountable and creates a positive image
among consumers.
Sustainable development is the need of the hour and if it is implemented
to the core of every business the environment will be happy and healthy
again. The business has all the great power to change the world through
innovations and strategies. It is enormous reach, power, and workforce
business is all ready to make the change the world needs to scale.
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