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With large corporations some of the worst offenders for environmental crimes, sustainability is, quite rightly, becoming a pressing business concern for as many as
62% of executives
. This sounds like great news until you consider that a mere 25% incorporate sustainability into their overall business models.
This is what’s known in the industry as the ‘knowing-doing gap,’ and it’s a driving force for ongoing negative best practices with regard to corporate environmental concerns. More worrying, perhaps, is the fact that upfront sustainable understanding can confuse consumers into believing that companies are doing more than they actually are. From a business standpoint, this might seem better than the reality of inaction that’s the alternative, but misinformation or false representation can have severe repercussions, especially with regards to such a volatile topic.
To prove that point, we’re going to consider just three of the ways that failing to back up talk of sustainability with verifiable action could ultimately damage your company’s bottom line.
# 1 – The risk of reputational damage
With 83% of eco-conscious millennials claiming that they prefer to shop with brands that share their values, the benefits of talking about sustainability are plain to see. However, if you don’t back those values with action or, worse, if you continue environmentally damaging processes behind the scenes, then the reputational damage you’ll suffer will be worse than any potential benefits. This is why companies that push the sustainability narrative need to ensure that they’re at least taking steps to improve damaging processes, driving the positive change that is always going to outweigh anything you can say about sustainability.
# 2 – Failure to complete
More companies than ever, including top names like Nike, Pepsi, etc., are taking steps towards a more sustainable future by implementing key improvements such as sustainable packaging , reduced waste, and recycling drives. As such, merely talking about sustainability is no longer enough to keep modern consumers onside. Instead, a company looking to compete not only needs to spread a positive sustainability message but also needs to ensure that they’re taking steps to at least stay in line with the sustainability best practices of the moment. Only then can they guarantee that modern consumers keep looking their way.
# 3 – Falling foul to non-compliance
As pushes for sustainability increase, this becomes more than just a consumer concern, with many local councils now implementing stringent sustainability regulations regarding waste management, pollution, etc., especially at a corporate level. As such, consumers aside, talk without action here could leave you in severe legal trouble. This could lead to closure or heavy fines, and action against you as a result of this discrepancy will most certainly stop customers from coming to your doors moving forward. By taking the time to build a sustainable business model that adheres to local regulations, companies not only ensure good legal standing within their communities but should also find that they automatically start to back their talk about sustainability with positive changes that their consumers can actually see.