How Sustainable Practices are a Driver of Business Success

For ages, going green used to feel like something businesses did for good PR, a nice-to-have add-on. But times have changed. 

Smart companies globally recognize sustainability as a key to operations and competitive advantage, not just an environmental concern. 

So what does sustainable mean in the business world? It’s about running your company in a way that doesn’t harm the planet, treat people unfairly, or make shady backroom deals.

It boils down to three main things, often called ESG (Environmental, Social, and Governance). 

Putting these pieces together isn’t just about ticking boxes. But this integration is proving to be a powerful recipe for a better, stronger, and more successful business. Here’s how: 

Going Green Boosts Customer Satisfaction

Sustainability might be falling from the to-do lists of CEOs. But The Wall Street Journal says that customers still care a lot about it.

When a business shows it cares about more than just the bottom line, like protecting the environment or treating workers fairly, customers connect with that. It builds trust, makes them feel like their money is going somewhere worthwhile, and keeps them coming back for more.

Don’t just take our word for it. Loads of recent studies show US shoppers are paying attention. One study found that 75% of Americans care about the environmental impacts of products. 

What’s more, many folks are willing to put their money where their mouth is. PwC’s research found that customers are willing to pay a 9.7% sustainability premium even amidst inflationary and cost-of-living concerns. 

Going green is not about slapping a green leaf on your packaging. It’s about transparency and values. When companies genuinely try to reduce waste and use sustainable materials, customers feel good about buying from them.

Sustainability Reduces Operational Costs

There’s this weird myth that sustainable practices are expensive. It’s understandable why businesses might think that way.  

Often, the upfront cost of sustainable alternatives can be higher. However, sustainable practices can actually lead to significant cost savings in the long run.

Take hydrogen, for example. It’s gaining traction as a clean energy source, especially for industries that rely on heavy machinery or transport. 

However, safe and efficient storage has hindered the wider adoption of hydrogen. The development of a durable and efficient solid hydrogen storage solution is aiming to eliminate that bottleneck. 

It’s a compact and safer storage method as it doesn’t require high hydrogen pressure or cryogenic temperature. H2MOF explains that it uses reticular materials such as metal-organic frameworks (MOFs) to safely store hydrogen at ambient temperature and low pressure. Solid-state hydrogen storage based on reticular materials is cost-effective, as small amounts of these materials can adsorb large volumes of hydrogen.

That’s just one piece of the puzzle. From energy-efficient lighting to smart water systems, sustainable upgrades often pay for themselves over time.

Innovation Gets a Boost

Trying to solve sustainability puzzles, like how to make a product without toxic chemicals, forces companies to get creative and think outside the box. It pushes them to innovate, leading to breakthroughs they might never have stumbled upon otherwise.

Companies are inventing amazing eco-friendly materials. Biodegradable packaging made from mushrooms, plant-based plastics, fabrics made from recycled bottles, or concrete that can repair its own cracks are examples. 

Innovation leads to products designed to use less energy or water during their lifetime, or products built to last longer and be easily repaired. Sometimes it leads to entirely new business models, like shifting from just selling a product to offering it as a service.

The old ‘take-make-dispose’ model is getting tossed. Companies are embracing the ‘circular economy.’ That is to say, they are designing products so components can be reused, materials can be recycled back into new products, and waste is minimized from the get-go.

This wave of sustainability-driven innovation can open doors to new markets and attract eco-conscious customers and investors, making the business more resilient and future-proof.

Real-World Success Stories: 2 Brands Who’s Nailing It

Here are some big-name companies that are absolutely crushing it by putting sustainability right at the heart of their business:

Unilever

You definitely know its brands—Dove, Axe, Ben & Jerry’s, Hellmann’s, and the list goes on. 

Years ago, it launched the Sustainable Living Plan to halve the environmental footprint of its products through sustainable sourcing and reducing greenhouse gas emissions. 

Under the Unilever Sustainable Living Plan, its brands grew 46% faster than the rest of the business and delivered 70% of the turnover growth. 

Patagonia

It is the poster child for sustainability. The outdoor apparel company’s mission is literally “to save our home planet.” It walks the talk by donating 1% of its sales, not just profits, to environmental groups through the 1% for the Planet initiative.

Patagonia’s “Worn Wear” program is pure genius. The brand will repair your old gear (it fixes over 100,000 items a year), let you trade it in for credit, and resell used items online. This keeps tons of clothing out of landfills, extends product life, and builds incredible loyalty with customers who admire their commitment.

The Takeaway: Doing Good is Doing Well

Being sustainable isn’t just some fuzzy, feel-good initiative anymore. It’s a smart, strategic move.

The companies that are embracing sustainable practices aren’t just doing less harm to the planet. They are doing more good and making more money while they are at it. That’s the future of business—green and lean.