Environmental Sustainability in a Time of Adversity
As the time of this writing, we are in the middle of the COVID-19 pandemic, with most of the globe adopting shelter in place. This is an unprecedented time in modern history, and small businesses, self-employed individuals and freelancers are wondering what the future will hold post-pandemic – as is everyone else.
One thing is for certain, once business as usual resumes – if there will be such a thing – businesses of all sizes and across most industries will be re-evaluating what projects they consider a necessity for short and long-term survival and what can be put on the back burner. They will be looking at ways to generate cash flow quickly and reduce unnecessary expenses.
When conducting this review, there will be many things to consider, including the market, the economy, and available resources. In addition, existing and future projects will most likely be reviewed based on certain criteria, such as whether these will:
Reduce operational expenses and strengthen business operations
Increase sales and cash flow in the short and long term
Offer potential access to financing
Provide a solid return on investment
Enhance brand awareness
As with other projects, any existing and planned environmental sustainability projects will be closely scrutinized, and that is great news!
Reviewed against the above criteria, environmental sustainability projects will most likely be found to be necessary for the long-term well-being of the organization.
Here is a quick overview of how environmental sustainability projects can support businesses and generate cash flow– especially in a tough economic climate such as the one that will likely follow the COVID 19 pandemic:
Reduce operational costs and strengthen business operations: Many low-cost going green projects focus on generating operational savings, and if you are looking to save money and reduce expenses, this is a great place to start. Something as simple as turning off the lights and adjusting the temperature settings can results in decreased energy bills of up to 20 to 30 percent. For those who pay a set utilities fee, other projects such as reviewing procurement practices, reducing paper use, and replacing disposable products with reusable ones can also lead to significant savings. In addition, implementing environmentally sustainability business practices will help strengthen business operations by addressing some common operational risks.
Increase sales: Across various demographics, and especially among the millennials and Gen Zers, going green and environmental sustainability has been a big consideration when deciding which businesses to support. This is likely to remain the same even after the current pandemic, and with potentially reduced spending, it is even more important to capture these demographics’ loyalty and market share and environmentally sustainable and green practices – along with good products and services – are a great way to do it.
Offer potential access to financing: Investors and loaning institutions are increasingly looking to support projects that are considered environmentally sustainable and/or green. While green and sustainability linked loans are relatively new to the market, they are quickly gaining in popularity, especially with the publication of the Green Loan Principles and Sustainability Linked Loan Principles in March of 2019. These principles provide guidelines for lending to businesses that are looking to implement sustainability and green projects.
Achieve a solid return on investment (ROI): Many environmental sustainability projects can be quantified, and when quantified and implemented properly, can achieve an ROI of at least 20 percent. If you are wondering how to calculate a sustainability or green project’s ROI, review these five steps as a starting point.
Enhance brand awareness: Going green and environmental sustainability has been shown to enhance brand perception and build trust with customers or clients. Studies, such as this one by Accenture of nearly 30,000 consumers, show that the majority of consumers expect companies to take a stand on topics such as sustainability. Businesses that are environmentally sustainable and green have a higher brand perception than those that are not.
In conclusion, if you were working on a green or environmental sustainability project prior to COVID-19 or were planning on proposing or starting one in the near future then pressed paused because of the pandemic, don’t stop. Use this time to get ready – plan, get your project’s business case together, and be ready to take action when shelter in place is lifted.
If you’re still wondering if you should implement a going green project when you get back to work, here are 5 questions to consider.
And if you aren’t sure where to get started with going green, be sure to get the FREE download: The Beginner’s Guide to Creatively Grow Sales by Going Green, which lists over 50 low-cost projects and resources to get started.