More Evidence SDGs Boost Revenue

Surfing the net, I came across additional, corroborating information that, as I have been writing, businesses that incorporate some or all of the Sustainable Development Goals into their companies’ business plans will reap the benefit of greater revenue.

An article by Madelein Cuff on www.GreenBiz.com stated companies are using sustainability strategies to boost revenues, cut operating costs and achieve better borrowing rates.

The findings were released earlier this month by Dutch banking giant ING and were based on the results of a survey, carried out by Longitude, of 210 finance executives from US-based companies with annual revenues of between $500 million and $20 billion.

According to the writer, the survey found the potential to grow revenues was the most important factor when deciding to implement sustainability strategies, with 39% of respondents citing revenue growth as a priority. Cutting costs was identified as the main driver for sustainability initiatives by 35% of respondents, while 30% said they primarily were seeking to boost brand reputation.

Among those businesses with well-established sustainability policies already in place, the opportunity to secure a more competitive borrowing rate than their competitors was also commonly cited as a driver of sustainable strategies, ING said.

Forty-eight percent of executives reported that sustainability concerns have at least some influence over a business’s growth strategy.

“We are witnessing an important shift in how companies in the United States view sustainability,” Gerald Walker, CEO of ING Americas, said. “Our research shows that it is no longer just about cutting costs or creating positive brand awareness ­— sustainability strategies are being deployed as true revenue drivers.”

In other words, embracing sustainability principles by your firms will positively affect all segments of your businesses. It will add revenue to your bottom lines.

The survey also demonstrated how sustainability strategies are starting to play an integral part in overall growth strategies, with 48% of executives reporting that sustainability concerns have at least some influence over a business’s growth strategy. This admission, at least, could influence other CEOs to join the sustainability bandwagon.

It also suggested the business appetite for green bonds could be filtering down from the largest corporates to smaller players in the market.

To date, appetite for green bonds has been greatest among firms with more than $10 billion in annual revenue, but 37% of smaller firms said they were planning to issue green bonds in the next two years.

“The increasing demand for green financing marks an inflection point,” said ING's Global Head of Sustainable Finance Leonie Schreve. “Our survey found larger firms have attracted a new breed of investors focused on meeting socially responsible investment mandates. We expect this trend to now expand to organizations of all sizes, as respondents across the board reported an increased appetite to both issue green bonds and undertake green loans.”

Regardless if you’re a Fortune 500 corporation and a local small business, the Sustainable Development Goals can help our planet, humanity, your marketplace and your bottom line.

Join the conversation in cyberspace about sustainability and boosting your business. If you have examples of how you used social media to boost outreach about sustainability, let me know about it and I’ll help you spread the word about your success. If you need help, reach out to me.

Scroll through my blog to read about more ways to boost your outreach.

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http://thoughtleadership.yolasite.com/              

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