A Sustainable Plan Toward Profitability - CEOWORLD magazine

CEOWORLD magazine – Top Stories – Business Transformation – A Sustainable Plan Toward Profitability

Sustainability and profitability may seem challenging to balance in business, but ESG efforts often translate into improved employee morale and healthier bottom lines. But successfully doing well by doing good means sharing a well-communicated plan with the entire company. If you need to start incorporating sustainable, responsible corporate practices, here are a few places to start.

Over the past 20 years, sustainability has become a major focus in the wider corporate conversation, and for good reason. New technology, corporate responsibility mandates, and a more informed workforce are all leading us toward new opportunities in the way that we structure our practices and profits to last.
Though “sustainable” and “profitable” can seem like tricky concepts to balance, the effort to do so is increasingly rewarded in today’s economy. In the era of ESG mandates and the Great Resignation, the sustainable thing often translates to the right thing, in terms of both financial gain and staff longevity.
When it comes to making sustainability profitable, a well-communicated plan and details about how this plan will benefit your company are imperative. Here are a few places to start:

“The problems occur when sustainability is counter to the maximum profitability or return on investment. Many companies view this as an either/or scenario,” says Larry Clarke, CEO of Nanoguard Technologies. “The ability to find a more sustainable pathway is sometimes due to entrenched thinking or older technology. Typically, this is why the board of directors is required to ‘inspire’ the management to find new ways of doing business that has minimal negative impact to the bottom line or, as found in many cases, improves the bottom line.”

Therefore, according to Clarke, the key is to get the company’s directors on board with the plan: “The board has the unique authority to provide the incentive or eliminate roadblocks.” Communicating that a companywide push is occurring prior is a way to prevent any tension between sustainability and profitability goals, he adds. And, of course, the plan must be clear and with measures and metrics for the employee to understand and communicated just as clearly.

Creating sustainable, responsible processes in the workplace isn’t easy: It takes time, attention, focus, and a tight management team, all of which tend to be precious resources. But evidence shows that the effort put into starting sustainable, responsible corporate practices early is not wasted. In the past two years, sustainable investment assets have grown by 42% here in the U.S., and that growth is being seen in almost every region in the world.

As ESG mandates increase and the Great Resignation continues, sustainability isn’t just a noble concept; it’s a real opportunity for growth, profitability, and longevity — an opportunity not to miss.
Written by Rhett Power.

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