The concept of sustainability is not new. Companies have been slowly engaging in these practices for some years. What is starting to take shape is terminology and standards. We have enough data now to show that whatever green, eco-friendly, or social project your business decides to engage. The end results are profits.

Sustainability begins with an understanding of your resources or where your capital resources originate. These are financial and manufacturing capital, human and social resource capital; and environmental capital. How effective you manage these resources will set your business up for resilience and growth in this uncertain and changing times.  

Increase revenue

Let’s start with the big one first. Research shows that by incorporating any number of sustainable, or social project results in an increase in profits as much as 51%.  A 2014 report on S&P 500 companies concluded that when enterprises include sustainable or impact practices to their core business model and values. The ROI is near 18%. Customers are looking for more durable and eco-friendly options. When business meets these demands, new revenue streams emerge with long-term growth.

Reduce expenses or operating costs  

Using eco-mindedness as a lens to control energy cost, proper waste management, or increase employee productivity. Companies can reduce operating cost in many ways. With improvements and investments into energy savings options such as solar, companies see up to 20% returns. These savings last over the lifespan of your business.  You need to have your lights on, why not explore options that save you money. Investment in renewable energy like solar is the answer to savings.  Lessening material in your packaging is another option that reduces cost. Reducing your use of raw materials saves you money and protects one of your key capitals: the environment. Reuse and recycling reduce cost. Natural candle maker Efua Baby sells non-toxic candles. The handmade candles are safe and clean to burn. As a way to ease production cost. She offers a candle jar recycling program for repeat customers. When customers bring back the used candle jar, they receive a discount, and she doesn’t have to purchase a new jar for production. The jars can cost her $3.00-$5.00 depending on the size.  You can see how this saves her a ton of money and get repeat customers. The options to reduce expenses and cost can protect your business and ensure healthy and steady returns for the future.

Reduce risk

Management of your five capital resources, reducing your cost and innovation into new markets all help to reduce investment risk. Those words are music to a CFO’s ears.  When you use sustainability as a lens, you understand that doing business relies on multiple levels.  Properly managing your triple bottom line: social, environmental and financial capitals not only increases revenue but solidifies steady grow and reduce risk.

Enjoy your growth

Yes, the future is uncertain. Despite the slow pace of government officials and climate change deniers effort to come to terms with the validity on taking necessary steps to reduce impact. Companies are seeing the positive returns. They are doing so by managing their five capital resources well and investing wisely in innovate sustainable solutions.  If your business can get a handle on your most valuable resources: people, planet, profits as similar entities. Your company will experience savings and growth for years to come.