Sustainability Won’t Wait: Why Businesses Must Prioritize Progress
Companies today find themselves at a sustainability crossroads. Ignoring the market shift toward decarbonization is no longer an option, as external forces continue to accelerate the transition. In what ways?
Originally published on NRG Energy Insights
Demand for organizations to respond to climate change comes from many directions:
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Investors
An estimated 85% of investors consider ESG* factors when making investment decisions.¹
Key takeaway: Sustainability efforts are not just good for the planet; it’s essential for attracting investment and growing your business value.
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Government
Governments around the globe are increasingly weighing in on sustainability by issuing regulations, guidance, and incentives.²
Key takeaway: Staying ahead of these regulatory changes is about more than compliance; it’s also an opportunity to lead in environmental sustainability and demonstrate your commitment to a sustainable future.
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Non-Governmental Organizations
With 70% of its Company Network members from Fortune 500 companies, Ceres not only drives awareness about crucial environmental research — it also sets standards that press businesses across industries to take decisive climate action.
Key takeaway: Aligning with standards set by leading non-governmental organizations can showcase your commitment to a cleaner future and enhance your brand’s reputation.
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Customers
3 out of 4 Gen Z and Millennial consumers agree that businesses should communicate more about sustainability goals and social impact.³
Key takeaway: Transparency and action on sustainability initiatives can significantly bolster your brand’s appeal to and loyalty from customers under the age of 45.
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Employees
71% of employees and employment seekers say that environmentally sustainable companies are more attractive employers.4
Key takeaway: In today’s competitive job market, a commitment to clean energy and energy efficiency can be a game-changer, positioning your company as an employer of choice.
Business strategy models that combat climate change and implement cost-saving solutions have the potential to give companies a competitive advantage, drive growth, and create long-term value. And yet, the path forward isn’t always clear.
That’s why we’ve created a free, in-depth guide with everything you need to know about developing and integrating a sustainability strategy — from reducing your carbon footprint to engaging with stakeholders.
*Environmental, social and governance (ESG) refers to a collection of corporate performance evaluation criteria that assess the robustness of a company’s governance mechanisms and its ability to effectively manage its environmental and social impacts. Examples of ESG data include the quantification of a company’s carbon emissions, water consumption, or customer privacy breaches. Institutional investors, stock exchanges, and boards increasingly use sustainability and social responsibility disclosure information to explore the relationship between a company’s management of ESG risk factors and its business performance.
³https://www.triplepundit.com/story/2024/consumers-companies-sustainability/805051
4https://www.ibm.com/topics/business-sustainability#citation1
