Carbon Neutrality is a way for companies to manage their carbon footprint and reduce their environmental impact. It may seem like a goal far out of reach and too idealistic for a business.
There’s also much skepticism about climate change in the first place and how harmful its effects are. But with ever-increasing global temperatures leading to more intense natural disasters, we must start cleaning up if we ever want to enjoy a peaceful future.
Sure, it’s an admirable goal to have. But can this investment positively impact my bottom line? Are there any short-term benefits to going carbon neutral?
Here are four reasons why carbon neutral is an excellent investment you can make today:
Customers prefer the carbon neutral label.
A study by First Insight Inc. shows that 62 percent of Generation Z shoppers (people born between 1997 and 2012) prefer purchasing from brands with sustainable practices. Additionally, 73% of Gen Z shoppers prefer to pay more for sustainable products. How does this affect my business?
By 2030, Gen Z will occupy 27 percent of the global workforce. The percentage of Gen Z workers will only increase from then on, meaning it’s essential for you to get ahead of the curve. Establishing yourself as a business with sustainable practices will secure your position in the market of eco-friendly shoppers.
In the growing Gen Z demographic of workers, it’s important to remember that your next employee will be from this generation, so it’s time to start thinking about what you can do to attract new, upcoming talent from this crowd.
Employees look for sustainability practices.
With the rapid integration of the internet in our lives, it only makes sense that people are hyper-connected in this society. News happening across the globe is available in mere seconds to anyone with access to the internet. No one is more connected to the internet than Gen Z. Known as “digital natives” as they grew up just as the internet became accessible to the masses.
What does this all mean? Your prospective employees can find information about you and your business in mere moments. If they don’t like what they see, or their values do not align with theirs, they will gladly look for another company that will. Getting LEED certification is a step in the right direction in this case. Even as simple as getting any surface recessed access doors add up to your LEED credits, making it easier to obtain LEED certification.
Taking steps toward sustainability and carbon neutrality safeguards your reputation and secures a steady stream of young, talented workers.
Working sustainably for higher profits.
Sustainability is a term coined for processes maintained for an extended period without intervention. Our environment is an excellent example of this. Animals breathe in Carbon Dioxide and inhale Oxygen; plants release Oxygen as a byproduct of processing Carbon Dioxide. A balanced system designed to maintain itself without intervention, a masterpiece of a highly efficient exchange process.
You can use this same concept for any system you want to create within your business. By ensuring that another process can utilize waste or excess made by another, you set yourself up to maximize sales as all materials get used in some way.
Currently, this perfect system may be out of reach for everyone. For now, we all can do well by reducing wasteful practices. While researching waste reduction, you may stumble across the time “Lean Six Sigma.” Lean Six Sigma is a process of improvement that focuses on improving work quality to reduce defective output. Because you’re dropping inefficient processes, your company naturally picks up profitability.
Investors love Carbon Neutrality.
In the 2020 McKinsey Global Survey, 83 percent of C-level Executives say that they expect ESG (environmental, social, and governance) programs contribute more to shareholder value in the next five years. The perceived worth for companies with favorable ESG impact also extends to the C-level executives’ willingness to pay 10 percent more to acquire the said company.
The best news is that a large number of executives find sustainability to be necessary. However, only 25% of companies have integrated sustainability into their business processes. You may consider the benefits of integrating carbon neutrality if you want to be a market leader in your industry.
The process starts now.
Ultimately this article is not the be-all and end-all guide for going carbon neutral. Planning is essential in this process. If you want to do it right, finding a path toward carbon neutrality that works for you is crucial. From businesses to individuals, we need to get a head start today if we ever want to live free in a better tomorrow.