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Sustainability and Why it is Good for Business and The Earth

The COP-26 Climate Summit (Conference of the Parties), which began on October 31 and ended on November 13, was held in Glasgow. Through its leaders such as President Jokowi and Finance Minister Sri Mulyani, Indonesia calls on all countries to make the Paris Agreement a reality through implementation and meaningful efforts.

Sustainability should have been one of the top concerns for businesses in the country, just as it is for the government at COP-26. It is becoming increasingly crucial for companies to bridge the knowledge-to-action gap by embracing sustainable business strategies. To give you a picture, sustainability is meeting current demands without jeopardizing future generations' needs in the process. There are three pillars that will support sustainability: economic, environmental, and social concerns.

As Elon Musk showed by becoming the world's richest person, starting a business to make the world more sustainable can not only highlight someone as a hero, but it can also bring a lot of cash. Overexploitation of resources is a global problem. A sustainability plan, according to McKinsey, allows a corporation to make long-term investments. When it comes to sustainability, doing nothing can result in a more significant loss in the long run.

Many business executives are recognizing the importance of reusing and recycling and are pushing toward a circular economy. The experts are predicting that the renewable energy business is going to be worth $2.15 trillion by 2025, making it a significant development area. We've put together some of the top reasons why you should implement sustainability strategies in your company:

Add Brand Value And A Competitive Advantage

The millennial generation is the largest in the population. According to a Nielsen poll, millennials are twice as likely as baby boomers to claim they are changing their habits to decrease their influence on the environment. Generation Z is on its way to becoming the next dominant generation, and it is just as concerned about sustainability as millennials. This situation demonstrates that focusing on sustainability can significantly boost corporate brand value, and many of the world's leading brands are doing just that. By 2030, Apple has promised to become carbon-neutral in its products and supply chain. Companies that incorporate sustainability into their business strategies and corporate governance can gain a competitive edge in the long run.

Meet Consumer Demands

According to Nielsen research, 66% of consumers would pay extra for a product if it came from a sustainable brand, and 81% of global consumers believe businesses should benefit the environment. Consumers are shifting their attitudes toward sustainability, and this tendency is only growing as the number of millennials and generation Z grows. Though social and economic aspects of sustainability are important, environmental issues are at the forefront of the discussion.

Cooperative Action Can Drive Change

It can feel daunting, alienating, or just impossible to make meaningful change as an individual. When the world's most innovative, successful, and influential firms collaborate to solve some of the world's most serious challenges, that is not the case. While governments struggle to handle public-goods issues, purpose-driven businesses that collaborate to solve these problems have had considerable success.

Palm oil, for example, is inexpensive, versatile, and appears in over half of all packaged goods, including soap, lipstick, and ice cream. However, palm oil production has resulted in unprecedented greenhouse gas emissions, contributing to climate change.

As a result, in 2008, consumer products giant Unilever pledged only to use palm oil from verified sustainable sources. To spearhead an industry-wide adoption of sustainable palm oil, the company collaborated with its competitors and governments, NGOs, and indigenous peoples' organizations. As a result, Unilever remains a market leader.

You'll Protect Your Brand and Mitigate Risks.

A CEO's biggest nightmare is to end up on the top page of the newspaper because of a controversy. In addition to harming an organization's reputation and costing consumers, coping with a public relations disaster can take significant human and financial resources away from the main business.

You don't want to be known for allowing an oil leak or forcing staff to work in hazardous conditions. You prevent any detrimental incidents by implementing a sustainable plan that safeguards the environment and your team.

Whether you are a company owner or an employee, suggest everyone think more about sustainability in where you work. Learn more advice for any self-development topics and consult with us! Also, don’t forget to follow us on Instagram @baikgp and @ayureadypodcast for more information and extra insights!


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