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Why investing in sustainability makes financial sense – London Business News |



An ever-growing consumer trend, a moral obligation, the focus of government guidance: take your pick of the many reasons why sustainability should be a priority for UK businesses. Thankfully investing in sustainability is a win-win with benefits for your business too. Discover the financial advantages of going green.

Enhanced brand reputation

UK consumers are increasingly concerned about environmental issues as climate change becomes ever-apparent. 55% of people believe companies must behave more sustainably, and studies have shown that consumers will pay a premium for eco-friendly and ethical products.

Most UK customers are more likely to support companies with values that align with their own. Therefore, businesses investing in sustainability will likely attract and retain more customers than their competitors. In recent years, Unilever has reported its sustainable brands growing 69% faster than the rest of the business, driven by increased sales and customer brand loyalty.

Operational cost savings

While they often require substantial investment, sustainable practices usually lead to significant business cost savings in the long run.

Traditional operational processes are often wasteful, using more resources and time than necessary. Consider manual paper reporting against the modern digitalised method. As sustainability seeks to streamline operations, it should lead to cost savings.

Prioritising energy efficiency, waste reduction and resource conservation can all reduce operating expenses. Switching to green energy is a trending option for businesses seeking to be more sustainable due to the high gas prices of the last two years. Choosing local suppliers over international options minimises transport costs as well as your carbon footprint.

Regulatory compliance

Driving towards net zero by 2050, the UK government is committed to environmental initiatives. With new laws regularly coming into play, adhering to sustainability best practices where possible is the easiest way to ensure regulatory compliance in the fast-changing landscape.

Air pollution is a critical issue, and businesses are under pressure to reduce their emissions. Industrial companies should invest in the latest cleaning systems to achieve air pollution targets and stay ahead of the game of stricter guidelines in the decades to come. Failure to comply with government regulations can result in fines and damage to a company’s reputation.

Investment opportunities

Business investors prioritise Environmental, Social and Governance (ESG) criteria when making investment decisions as it’s clear these companies will perform best now and in the future. As with consumers, they’re also more likely to support responsible businesses that align with their valus. Companies with strong sustainability profiles are therefore more likely to attract and secure better financing arrangements.

The UK government also has funding to help businesses become greener, distributed via various eco-minded programmes committed to driving new sustainable technologies.

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