Sustainable Companies Outperform Peers in Value Creation
(3BL Media/Justmeans) – Corporate sustainability efforts include programs that address issues such as climate change, resource efficiency and circular economy, sustainable agriculture, and chemicals management. Some of the most valuable program approaches include product innovation, design and development, activating a sustainability purpose in the business, and responsible sourcing.
According to a recent survey by the sustainability consulting firm, Pure Strategies, top-performing companies generate twice as much value from these sustainability efforts compared to their peers. The survey found that companies earned more than $8 billion in 2015 as a result of these efforts.
Tim Greiner, managing director of Pure Strategies said that their research reveals that sustainability brings strong dividends of brand enhancement, increased sales, motivated employees and reduced risks and costs. The researchers also found that leading companies that are earning more, plan to further invest in their sustainability programs, signaling a strong business case for sustainability.
For the survey, Pure Strategies interviewed 153 sustainability leads in global companies with revenue of at least $250 million in these industries: food and beverage, apparel and footwear, life sciences and medical products, electronics and appliances, home care and cleaning, personal care and cosmetics, and general merchandise.
It found that while 43 percent reported at least $1 million in increased sales from sustainability efforts, 45 percent reported manufacturing cost savings, typically through resource efficiency and productivity projects. Clorox, for example, found that cost savings from sustainability improvements delivered an average of $15 million annually since 2008.
Hewlett-Packard Company engaged with customers whose combined green procurement requirements totaled $15 billion of existing and potential business revenue in 2015. Unilever reported 30 percent faster growth for its brands with a sustainability purpose, compared to the rest of its business, with these more sustainable products contributing nearly half of the firm’s total growth in 2015.
Smithfield Foods represents another example of companies saving money from their sustainability efforts. The company started tracking cost savings in operations in 2004 and found gains of $18 million in the first year. Since then, the company has saved more than $581 million.
Source: Environmental Leader
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