We’ve written about today’s shifting political and regulatory landscape; Greenplaces is more committed than ever to drive climate action and sustainability efforts with our clients and partners. But we know many are still asking questions around it making sense for your business. With the current administration rolling back federal climate legislation and funding, alongside the recent announcements of the EU delaying major sustainability reporting directives like CSRD and CSDDD, it’s a fair question.
Our answer back: the return on investment (ROI) for sustainability has never been stronger.
Beyond regulation: Why sustainability is good business
Sustainability is often misunderstood as a nice to have, apart from business rather than a part of business. Sustainability refers to the ability to use resources in a manner that is sustainable for people and the planet in the long term. If we overconsume, pollute and emit, businesses destabilize as much as our planet does. Sustainability only works when it’s good for business and good for the planet. While regulatory pressures may ebb and flow, the fundamental business benefits of measuring, managing, and reporting your carbon emissions remain constant. There is no other component of your business that you would knowingly choose to ignore, despite it having a demonstrable impact on your core business operations and markets. Understanding the full picture of your own business’ activities within its ecosystem includes understanding its emissions.
The financial advantage
A recent KPMG analysis of 2,617 companies revealed that sustainability indicators—such as reduced CO₂ emissions and robust business ethics policies—are significantly associated with increased gross profit margins. Meanwhile, sustainability-focused companies in the S&P 500 are experiencing return on investment figures reaching up to 18% (Procurement Tactics), demonstrating that sustainability is increasingly correlated with better financial performance. Institutional investors (~56%) are still integrating environmental, social, and governance risks into their investee decision-making.
Customer and supply chain demands aren’t going away
Customer and supply chain expectations will continue to evolve. Major corporations like Microsoft are requiring their suppliers to disclose and reduce their Scope 3 emissions as part of their procurement process. For mid-market businesses in the Fortune 500 value chain, this creates both challenges and opportunities.
Meeting these demands isn’t just about keeping your customers—it’s about becoming the supplier of choice and winning new business. With a comprehensive sustainability program, you’ll be better positioned to:
- Respond successfully to RFPs with a sustainability and climate strategy
- Meet current enterprise customer supplier requirements
- Share your initiatives, policies, and certifications in one centralized location
Real cost savings
The ROI for sustainability is clear. Consider these examples demonstrating real business performance:
- Mars Inc. reduced its carbon footprint by 8% in 2023 compared to a 2015 baseline while expanding its business by 60% to over $50 billion annually.
- General Mills achieved a reduction of 7% in scope 3 emissions and 12% in scope 1 and 2 emissions without relying on carbon offsets.
- From a recent Reuters report, 74% of large companies say sustainability positively impacts revenue growth, and 95% report a positive impact on brand value from sustainability initiatives.
Starting your sustainability journey
The good news is that you don’t need to be a Fortune 500 company to implement effective sustainability measures. In fact, the 73% of global emissions that exist outside the Fortune 500 represent the biggest opportunity to positively impact the planet. By 2025, sustainable investments are projected to reach $50 trillion globally, representing more than a third of projected total global assets under management—a clear indicator that sustainability is becoming a central focus for investors worldwide.
Here’s how to get started:
- Understand your emissions: Begin by measuring your Scope 1, 2, and 3 emissions to identify your biggest impact areas.
- Identify quick wins: Look for immediate cost-saving opportunities in your operations, particularly in utilities, water, and waste.
- Develop a strategic approach: Create a sustainability roadmap that aligns with your business goals and responds to customer demands.
- Communicate your progress: Share your sustainability journey with stakeholders to build trust and meet customer requirements.
The path forward
While the regulatory landscape may be uncertain, the fundamental drivers of sustainability—cost savings, customer demands, risk mitigation, and revenue growth—remain stronger than ever. According to recent data, companies implementing sustainable supply chain practices can reduce procurement costs by 9-16% and increase supply chain efficiency by 15-30%.
Greenplaces is committed to making sustainability accessible, practical, and beneficial for businesses of all sizes. Our all-in-one platform gives you the tools and information you need to measure, manage, and communicate your sustainability efforts with confidence. Research shows that 73% of consumers would switch brands if a different brand of similar quality supported a good cause—demonstrating that sustainability builds customer loyalty and drives business success.
