Business leaders are becoming increasingly more aware that carbon reduction, net zero and the adoption of sustainable business practices are vital to the planet and our very existence. What’s less recognised is that sustainable practices make good business sense and present a multitude of opportunities – in fact, like digital technology, it’s difficult to comprehend growing and sustaining a business without them. 

Colin Bell, Head of Business Growth and Support at the North East Combined Authority, explains some of the benefits for businesses.

Attracting customers: 78% of consumers say that a sustainable lifestyle is important to them (NielsenIQ) and 66% are willing to pay more for sustainable products.  Not building sustainability into your products and services is therefore likely to lead to lost sales and profit.

Market opportunities: If you don’t have a carbon reduction plan you are locking your business out of opportunities.Having a robust and evidenced carbon reduction plan is fast becoming a prerequisite when entering new supply chains or tendering for work;in fact, government have already introduced a requirement to include a carbon reduction plan when bidding for contracts above £5million and I’m sure it won’t be long until this requirement is applied to smaller contracts.

Profitability: At a time of inflationary pressure, identifying ways to reduce costs is essential.The great news is thatefficient processes use less energy, delivery a reduced carbon footprint and reduced costs, so implementing a carbon reduction plan is likely to improve your profitability. What’s not to love about that?

Innovation: Carbon reduction can inject creativity into your business. Building sustainability into your products and services will not only allow you to access growing consumer demand but will also result in the generation of new ideas that can open new areas of demand and new markets.

Attracting talent: Making a commitment to net zero is becoming essential to attracting talent, especially in gen z and millennials who place an importance on a business’s social and environmental purpose. Demonstrating a strong and ethical purpose is therefore of growing importance when attracting talent to your business.  

Businesses who do not drive forward and promote carbon reduction are likely to experience slower growth and generate lower profits. We know how important this, so we have pulled together a Net Zero Toolkit to support businesses to begin or push forward their journey to carbon neutrality.  Check it out here.