Are we sustainable because we must or because we want to?
The risks of unsustainable businesses
When sustainability is accomplished in a company, everybody wins. It benefits citizens, employees, investors and suppliers. The economic recession, the lack of resources and current social changes are influencing the agenda of every CEO and changing methods in every company that understands the value involved in developing and implementing sustainability strategies.
Shareholders, consumers and all interest groups are becoming increasingly demanding:
50% of Spanish consumers prefer products coming from companies committed to sustainability.
56% of young people between 21 and 34 years would stop working at a company if it does not meet their expectations regarding sustainability management.
The PRI initiative or “Principles for Responsible Investment” is supported by the United Nations and already has 1380 signatories, representing US$59 trillion.
Unsustainable businesses are exposed to:
- Increasing operational costs.
- Not being ready to face the lack of essential resources, such as water.
- Losing competitiveness.
- Being increasingly disconnected from a growing segment of more aware consumers.
- Being associated with a bad reputation.
- Stop being able to benefit from fiscal advantages and grants for the adaptation towards sustainability.
- Falling into unconstructive approaches, like greenwashing.
- Not being able to attract or withhold young talents, which will account for 35% of the labour market in 2020.
- Not knowing about the interests and expectations every stakeholder has about their trademarks and products.