Understanding the Profitability of Sustainable Markets
Around 66% of consumers will spend more on sustainable goods. Learning what makes sustainable markets profitable helps you create your own sustainability strategy.
73% of Millennials are willing to spend more on sustainable goods. Now, more businesses are combatting climate change and reducing their eco-footprint.
The environment affects every single person in the world. When a business becomes sustainable, it benefits its finances and the world.
Here’s what makes sustainable businesses profitable.
Save and Make Money
“Going green” could actually save your business money. Energy conservation and waste reduction lead to saving more money in the long-run.
On average, people are willing to spend more money on products/services made by a green business. Supporting green businesses makes people feel like they are part of something bigger than themselves.
Green strategies make your brand more appealing to consumers who support environmental causes. This expands your target audience to include a new demographic.
ESG is the Future
ESG stands for Environmental, Social, and Governance. It describes all businesses with sustainable, ethical, and responsible principles. Companies that commit to ESG tend to show better resilience and financial performance.
The ESG fields are experiencing a lot of profitable growth as of recently. If you read more about the Nasdaq board’s ESG perspective, climate change is a priority. Investors gravitate to green investments because there’s an increased demand for them.
It’s important to align your strategy with your sustainability goals. If you do, you’ll profit more from the following benefit:
Better Brand Image
Going green makes people perceive your business as more caring, responsible, and valuable. In turn, this improves its brand image and brand relationships with those who care about the environment.
A strong brand image supports market sustainability by encouraging repeat business. It also promotes brand loyalty by offering something (sustainability) that other businesses don’t have.
Making the environment one of your brand values also builds brand trust. Building brand trust also strengthens brand image.
Brand image plays a big role in the following benefit:
Boost Brand Value
Brand value refers to your brand’s monetary worth. Adopting green strategies and goals makes your business more valuable to investors and consumers alike.
More investors are investing in green businesses more than ever before. This proves that sustainable profitability will prevail in the future.
Once sustainability becomes the norm, the environment’s condition will improve. This will improve the quality of life all over the globe.
Sustainable Markets are Growing Like Wildfire
The money invested in ESG funds has more than doubled within a year. Tapping into sustainable markets now will help you avoid wasting time and money later on.
In 2020, ESG funds captured $51.1 billion new net money from investors in total. That means the future is looking bright for green businesses.
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