While it’s true that the first goal of going green with a business should be to make a positive impact on the environment, we would be lying to ourselves if we didn’t admit that there’s a major financial component to it. Many people will simply refuse to buy from a company that’s environmentally irresponsible. On the other hand, being eco-friendly can never be a bad thing. This is why all businesses should consider going green if they want to increase their bottom line.
Here are some of the main financial benefits of running a green operation.
1. Lower Utility Costs
Let’s start with probably the biggest and most direct financial benefit of going green. Not only will you be able to reduce costs on energy, but there are tons of grants and incentives for businesses who want to use renewable energy sources. Reducing things like water waste can also make a huge impact on your water bills.
Another thing your business could do right now to reduce how much they spend on water would be to compare water rates for business. Many services will allow you to compare rates between suppliers and switch easily. You also don’t need to turn everything upside down to start getting benefits. Doing something as simple as having a shutdown-and-unplug policy on your shop floor could allow you to save up to 16% on your energy bills.
2. Increased Demand for Products
Being eco-friendly is a major selling point and the marketplace will reward you if you’re honest about your efforts. You’ll be able to attract the environmentally conscious crowd and maybe push some who are less inclined to make a change. This can also become an integral part of your brand.
Not only that, but it has been shown that people are not only ready to go out of their way to buy green products, but they are willing to pay a premium for them. One study by Nielsen found that 66% of respondents had this commitment to eco-friendly products. This means that your company is leaving lots of money on the table by not catering to this audience.
3. Make Recruitment Easier
Clients are not the only ones who are environmentally conscious, however. If your business doesn’t start embracing eco-friendly ideas, then you could find yourself having trouble finding top talent in the future. One study found that 42% of the current workforce would prefer to work for a company that has a positive impact on the world, but this was even more pronounced with millennials at 62%. This next generation of employees seems to be even more conscious than the one before it, so corporate social responsibility and eco-friendliness will need to play an integral role in your business if you want to facilitate recruitment.
As you can see, there are tons of reasons why going green could benefit both the environment and your business. This is why we strongly suggest you start looking at what you can improve in your operation, make a plan, and start making incremental changes.