5 ways that going green will increase your profits
Just a few years ago, eco-friendly or “green” initiatives were largely dismissed as a passing fad. But as the public’s interest in sustainability grows, and climate change issues continue to dominate the headlines, it’s clear that “going green” is more than a fringe movement with no tangible impact.
Sustainability and profitability are not mutually exclusive. Implementing more sustainable business practices can lead to significant cost savings, from lower energy costs to tax incentives. Crucially, businesses can also gain loyal employees, clients and customers who have shared values.
Here are 5 ways that going green can increase your profits.
Better financial and investment opportunities
Green-focused startups and businesses can often take advantage of a broader selection of grants, loans and funding than a traditional business might. According to GOV.UK, almost £5 billion of funding is available to help UK businesses become greener as part of the government’s commitment to reach net zero emissions by 2050.
More attractive to clients and consumers
The Global Sustainability Strategy 2021 revealed significant shifts in how consumers view sustainability and the associated generational differences in willingness to pay for sustainable products and services.
- 78% of global consumers feel that environmental sustainability is important. They like the idea of being sustainable and want to live more sustainable lives.
- 63% of global consumers have made modest to significant changes to their consumption behaviours over time in an effort to live more sustainably.
- A higher share of Gen Z (39%) and millennials (42%) are willing to pay for sustainability compared to Gen X (31%) and Baby Boomers (26%).
- In terms of how much, Gen Z (32%) and millennials (31%) are willing to pay over twice as large of a premium for sustainability in their products/services relative to Baby Boomers (14%) and a third more relative to Gen X (21%).
The stats are clear: people, specifically the younger generations, want more from the businesses they support. Those that implement green initiatives will have a clear advantage over those that don’t.
Contrary to popular belief, sustainability doesn’t hinder profitability; it can actually save you money. LED lighting, for example, can use 25 to 30 per cent less energy than incandescent light and last 25 times longer, which can lead to significant savings.
There are also clear benefits to working from home, where possible. By allowing employees to work remotely, you can cut down your carbon footprint and paper waste, and reduce the costs required to light, heat, and cool your office.
What’s more, remote workers cut down on carbon emissions from commuting. A better work/life balance and a lower impact – what’s not to like?
Being a purpose-driven organisation may also help you recruit more motivated and talented staff who will support your growth ambitions. Increasingly, workers choose companies based on their commitment to sustainable and ethical practices.
The pressure is mounting for business leaders and politicians to “do the right thing” in a world threatened by rising temperatures and sea levels. It’s clear that sustainable initiatives are here to stay and businesses that embrace this will reap long-term benefits and a stronger company culture.
‘Green’ tax breaks for UK businesses
Environmental taxes encourage your business to operate in a more environmentally friendly way. There are various taxes and schemes suited to different types and sizes of businesses.
You may get relief or be exempt from some taxes, for example, if:
- You lost a lot of energy because of the nature of your business.
- You’re a small business that does not use much energy.
- You buy energy-efficient technology for your business.
You can pay less tax by applying for schemes to help you prove that you’re operating more efficiently and producing waste that’s less damaging to the environment. Find out more here.
Whether you’re on the first step to sustainable practices, or you’re ready to take your eco-credentials to the next level, trust True Horizon to help you decrease your footprint and increase your income. Find out how you can work with me here.