Business ROI from Sustainability

Business ROI from sustainability projects will be the first thing a non-mindful company will respond with to counter the suggestion of introducing them into the organisation.

“55% of companies are not measuring the ROI of sustainability initiatives, despite 74% of 2,500 respondents stating that their CEOs do appreciate the value of sustainability. Does this suggest that many companies still view CRS as a ‘nice to have’ but not – as we know it – a critical component for future success?” is a question posed by Nicola Stopps of Simply Sustainable.

This is a challenge for anyone seeking to introduce sustainable and ethical practices, processes and projects into their organisation.

Business leaders must quickly understand that if they delve deeply into the real values of such projects they may learn that there are two benefits of engaging with sustainability.

The first benefit is that they are more likely to have a business in the future if they do. In the future it will not be a case of these projects being a ‘nice to do’ but rather that you won’t have customers at all if you aren’t. This isn’t a negotiable, it’s a fact. The emerging generations of business decision makers have had enough of companies and brands that pillage the planet and their communities for their own gains.

The second benefit is that if authentically and carefully crafted, sustainability projects have a significant part to play in the marketing communications messages that help customers and supply chain partners to understand the values, purpose and operational commitments of the business. As such, this can lead to increased levels of engagement, loyalty and eventually, advocacy.

Expoknews.com suggests there are just 5 steps to begin to learn how to establish business ROI from your sustainability projects:

1. Begin with small projects
2. Poll your customers
3. Leverage the success of other companies’ efforts
4. Publicise your initiatives
5. Have realistic goals

This is a good starting point. The real ROI from your sustainability projects is likely to be seen in the medium to longer term, so be strategic and consider 3-5 years ahead when you are planning. And remember that the value can come from any of the new 4 Ps in the mindful business mix.

What do you think? Do you have a project you can share where you are seeing ROI?