You want your business and dreams to prosper, but did you stop to consider bigger opportunities? When you pass on, who will be responsible for what you’ve built? What if no one can be there to carry on that dream? That’s a reality you have to consider. The clock is ticking, and not just for your mortal life but for your children and the rest of the world.
“We have not inherited this earth from our parents to do with it what we will. We have borrowed it from our children and we must be careful to use it in their interests as well as our own.” — Moses Henry Cass
That’s the key to remember throughout this article and the whole publication. What’s the point if there is no future? That’s the big picture as to why you should care about sustainable business. But you might be wondering, why should I care right now? What are the compelling reasons for why I should care? Surely others in the environmental sphere are going to solve these problems, right?
They sure are trying, but they don’t have expertise in your arena. They don’t possess your business insights, marketing skills, financial and logistical operating expertise, or your network. The demand for your power is there from leaders in other domains. Collaboration and monetary support is needed from research and development fields, the supply chain industry, transportation, agriculture, education initiatives, circular economy initiatives, and AI-integration. There are so many opportunities and the time to start strategizing is now. Utilize your power to your advantage and the world’s advantage.
The Demand is There
The reality of climate change is bringing awareness to cities and communities worldwide. It doesn’t exclude any one from it’s reach. As we all become more aware of the implications of our decisions and systems on a mass scale, the more demand there is for change. Consumers want sustainable products and solutions whether that is food in the grocery store, ethically sourced building materials for a house, or toilet paper.
The numbers demonstrate across the board that consumers are more intentionally making purchasing decisions based on where and how products are sourced as well as the track record of a brand or business. 63% of consumers globally have made notable changes to live more sustainably. This number is only going to grow as younger generations, who care the most about environmental and social impact, become the main consumers and audience.
Industries already adapting are becoming the leaders of sustainability in the business and service world. We must always adapt in an ever changing world, business or no business. Those who recognize the need for environmental and social consideration will become more prominent in the rise of sustainable goods and services. If companies like Patagonia and Ikea are already leading the standard and attracting the growing market demand for sustainable goods then what are you waiting for?
“For companies to survive, they must innovate and transform their business practices to become sustainable now rather than later as the speed of change will continue to accelerate” — Simon-Kucher & Partners | Global Sustainability Study 2021
The Investment is Worth It
Artificial intelligence is on the rise and there is no stopping it. Like the rise of television in the 1950s, internet becoming mainstream in the 1990s, and smart phones becoming mainstream in the late 2000s it will become a part of every day life. There is so much opportunity for utilizing AI and innovating fresh systems, automations, and inventions to grow. The greatest crossover might be the rise of AI and a worldwide urgency for environmental sustainability. In a 323 page report prepared by Markets and Markets on Green Technology & Sustainability Market, in just 6 years from now green and sustainable tech will grow by $106.3 billion. Dive into this report for more insights on how to utilize AI in any field for improvement in sustainability and efficiency. See for yourself what the hot opportunity markets are in more depth.
ESG investments are growing globally and within the US. Globally 36% of assets under management are ESG investments according to GSIA. Renewable energy, sustainable agriculture, and green buildings are the key investment areas in addition to green tech.
The leading stocks you can invest in as a leader are:
- NextEra Energy (NEE) — This company has been around for almost 100 years, has always adapted to the times and gained rapid traction for each era of change and growth. They have been in wind power since 1998, set an ambitious goal of achieving net zero-carbon emissions by 2045, are present in 49 U.S states, and have no plans of slowing down. They plan to invest $85–95 billion in infrastructure through 2025.
- Tesla (TSLA) — Well know by now, Tesla has a global reach, operating in over 30 countries, with major markets in the United States, China, Germany, Canada, the UK, Australia, and Japan being at the top. They are actively expanding the geographical footprint and expanding energy use laterally. Now in solar, they are also expanding to heat pumps, hydrogen energy, and looking to sustainably fuel planes and boats. They are not confined to EVs but even Tesla recognizes the need for collaboration on these expansions, “We need other leaders in the industry to help us accelerate the final three.” They are a top leader in the EV field holding 60% market share in the U.S with increasing demand as well as their presence expanding globally.
- Brookfield Renewable Partners (BEP) — Operating globally with reach on five continents, this investment firm provides flexible, diverse, high quality assets in hydroelectric, wind, solar, and other sustainable solutions. They have plans to continue expanding globally and are utilizing Brookfield Real Estate to expand wind and solar opportunities. With 63% of ownership shares being institutional, they make a notable investment for any business.
There are multitudes of assets to invest in and it’s expected to keep growing. In a world of data and AI efficiencies at our fingertips reports like what Time just released will become the normal, like an investment report. What do you dream your business being and why? Imagine your business as a leader in its field, whatever that may be. You might also aspire to be in the top 100 sustainable business on Time magazines next report. That would enhance your image and help you be a leader in what you dream to achieve.
Benefits and Image
What is the cost of a protest or workers strike to your business? The boomers are retiring and younger generations are entering the work force. They want change and they don’t tolerate injustice. Millennials and Generation Z now make up more than 50% of the workforce and this topic matters to them. As climate change becomes more apparent and transparency becomes more relevant, mass employee strike’s become more frequent. No industry is untouched by the effects of climate change and the effects of climate injustice. Employee strikes have affected the energy sector, manufacturing, tech, transport, agriculture, mining, and even law and consulting firms to name a few. When 1,000 McKinsey consultants called out the firm for working with fossil fuel companies it damaged the reputation and employee retention rate. Dominoes in their foundation fell over just like that. The media backlash caused some clients to reassess their relationship and leave. The company has patched up that damage since the ball dropped in 2021 but that history is forever known and the time wasted all around cannot be taken back. That’s enough to give a lot of clients reason to pause and reconsider.
When thousands of Amazon employees called for an address to resolutions in climate change and transparency, the pressure caused Amazon to do something about it. Imagine the operational costs of multiple strikes worldwide over the span of many years. Instead of scrambling to come up with solutions for the necessary sustainability models without workers and a damaged reputation, just do it now, so you don’t have a reputation in the toilet and low work productivity.
Think of the benefits becoming a sustainable and environmentally friendly company would reap. Not only would your image attract a growing population of those who actively want to be conscious of the brands or businesses they support, but your operational costs will decrease. Implementing renewable energy and reducing energy consumption will save you money in the long run. Fossil fuels are only going to get more expensive. Plus, something as simple as changing out the light bulbs saves so much energy. So why not do it? If it applies, shifting to reusing, up-cycling, and sustainable sourcing will be of great benefit, especially as resources become scarce and eventually run out.
You can make whatever business you are running sustainable or give it a sustainable reputation. Whether it’s putting solar panels on your roof or helping finance your local utilities to build green energy solutions with a beneficial agreement.
What about tax breaks? I know you love to hear that. You can apply for a tax credit when you invest in advanced energy projects. Additionally, there are numerous credits depending on what you do, whether it’s switching to an alternative fuel, having EVs, manufacturing, or energy use. Look (or have your assistant or AI) look into the tax credit details on the local, state, and federal level.
Mandatory Due Diligence
While the majority of the clearly laid out regulations are overseas, such as The Ecodesign for Sustainable Products Regulation (ESPR) and Anti-Waste for a Circular Economy Law, it’s still good to learn about them. Change is not that far behind in the United States. At the end of the day you are still responsible for what you create and the effects it has, whether that is a product, service, data etc. After all, you don’t want to be involved in one of the many massive lawsuits that tend to happen when companies disregard the well being of the environment and people in it.
Aside from the rapid change in laws and regulations, social responsibility is more relevant than ever. You should seek to connect compliance with broader commitments and a vision, like human rights commitments, environmental standards, or any ethical principle. This will give you something deeper than just a business that others will respect and look up to.
These things are already revolutionizing the business world and you will have to adapt or you will likely sink in resistance.
There is more to it than return on investment of your money. There is the deeper meaning in thinking about the future and the benefit to all humankind. The investment is driven simultaneously by the demand from the public for sustainable, clean and responsibly sourced products and services as well as corporate responsibility to meet compliance goals. There is no stopping a machine already speeding full steam ahead. Now is the time to make the changes to protect the future of your business and generations to come. The clock hasn’t stopped ticking.
Disclaimer: I am not a professional financial advisor.
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