How Canadian companies are connecting sustainability to ROI
When it comes to sustainability, it’s a lot easier for businesses to talk about ‘going green’ than actually make concrete changes that make a meaningful difference to the planet.
But, in an economy where consumers are increasingly alert to greenwashing – and regulatory environments are steadily more geared toward enforcing sustainable standards – talking a good green game may simply not be enough any more.
“Consumers are demanding more from brands when it comes to sustainability, and for many consumers this is becoming a prerequisite to purchase from companies,” says Jacqueline Prehogan, co-founder and chief brand officer of Open Farm. The premium pet food company made regenerative agriculture, packaging waste reduction and carbon reduction and offset the key pillars in their sustainability efforts.
“For many, sustainability is going from a ‘nice to have’ to a ‘need to have.’ Brands that have no sustainability programs may find their growth negatively impacted over time,” she adds.
Classic Landscapes in Alberta, for example, helps clients go green in the most literal way, helping them implement sustainable landscape strategies.
“Businesses should view sustainability investments as a long-term, cost-savings strategy. Upgrading irrigation systems and using native plants, for example, reduce water usage and maintenance costs over time,” says owner Josh Payne. “Every action matters in creating a sustainable future for our businesses and communities. Reducing waste and emissions, and choosing sustainable suppliers and materials are meaningful ways for companies to contribute.”
In the digital realm, Genius Solutions is a company that works with companies to give them the tools to track how they’re doing to meet environmental goals like energy usage, waste and emissions.
“Businesses should view sustainability investments as strategic, long-term initiatives that can lead to cost savings, improved efficiency, and enhanced brand reputation,” says Jean Magny, the company’s president. “The ROI should not only be measured in financial terms but also in terms of environmental impact and compliance with regulations, which can mitigate risks and open up new market opportunities.”
Some investments that Magny suggests, based on his experience watching – and measuring – companies make these investments: Upgrade equipment, retrofit facilities, invest in renewable energy and seek out more ecofriendly suppliers.
“Successful sustainability programs require buy-in from leadership, realistic goals, and tools for tracking progress,” he adds, pointing to organizations like Clean50 and Smart Prosperity Institute that offer helpful resources for businesses looking to become more sustainable.
“The transition requires money, expertise, and a culture that is willing to accept and accelerate this type of business transformation,” says Prehogan. “I always encourage businesses to start small, recognize it is a journey, and learn along the way. The most important thing is the desire and the will to evolve the business, and the persistence to stick with the journey.”
Another significant investment that Canadian companies are making is hiring for roles that directly or indirectly have sustainability in the job description.
“As a mission-driven company we realized that the work involved in delivering on our sustainability, animal welfare and transparency commitments was massive and we needed dedicated team members,” says Prehogan, who is now one of the members of this five-person team that drives the strategy behind their sustainability, transparency and animal welfare programs. “The team works cross-functionally across our organization to integrate sustainability into everything we do.”
Investing in sustainability generates both tangible and intangible dividends, adds Greta Maiocchi, head of marketing and recruitment at Open Institute of Technology, an online higher education institute that offers degrees in computer science which include education in sustainable technology.
“Businesses should perceive sustainability investments as long-term strategies that yield substantial returns by enhancing reputation, attracting talent and potentially minimizing operational costs through energy-efficient measures,” she says, pointing to hiring trends that show an uptick in demand for people with “a robust understanding of sustainability data analysis, strategic planning, and ethical problem-solving.”
The ultimate ROI when it comes to investing in sustainability, however, may be a company’s survival, Maiocchi suggests. “Sustainability is beyond a mere trend. It’s a business imperative that offers both moral, practical, and financial dividends.”
Source: theglobeandmail.com
