5 reasons why your organization should prioritize its sustainability program

The world has changed and so has corporate governance. Conversations around environmental responsibility and sustainability have become commonplace, particularly in public policy. And the rules and regulations are ever expanding.

Of course, each region may have different requirements, but as corporations become more global, international policies have sought to create a unified system, synchronizing regulations between federal, international, and regional governments. It’s not a perfect system, but concerted efforts are being made to unify this.  

Despite its ever-evolving nature, corporate sustainability programs are now essential, regardless of where your organization operates. Not only is it the responsible thing to do, but as the public has become increasingly aware of the climate crisis, so has the expectations that the corporate sectors will ensure they are doing their part as well.  

This is a good thing and there are many reasons why your organization should prioritize its sustainability program.  

In this article, we’ll go over what corporate sustainability means, why it’s important, and the main reasons why your organization should prioritize its sustainability program, helping you move your company forward into a sustainable future.  

Let’s dig in.

5 reasons why your organization should prioritize its sustainability program 

There are many reasons why an organization should prioritize its sustainability program, but a few rise to the surface.  

it helps entice investors 

It’s no surprise that with strong ESG performance, companies tend to have lower risks and higher returns over the long-term. With higher returns, it’s easier to attract investors and stakeholders, thus helping to bolster growth and development within the organization.  

With a strong sustainability program, companies can stay ahead of regulations and legislation. With strong inter-company policies and procedures, and robust ESG education, companies can be proactively implementing sustainable practices, reducing (and even eliminating) the risk of losing investors or worse, being levied with fines and penalties for not adhering to ever-changing legislations. 

By prioritizing its sustainability program, a company can improve its reputation and credibility. Investors are often more willing to invest in companies that are seen as being socially responsible and climate-risk adverse.

attract and retain quality talent 

Sustainable organizations are more likely to attract and retain quality talent by creating a positive and fulfilling work environment. Through initiatives such as green office practices, ongoing education, eco-friendly policies, and socially responsible actions, employees will come to view a company as forward-thinking and caring for the community.

Additionally, as sustainability programs become more robust, employees are more likely to feel a sense of purpose and pride in their work and workplace. This can increase job satisfaction and loyalty. This can also lead to reducing stress while fostering a healthier work environment, leading to increased productivity and employee retention.  

With emphasis on a sustainability program, organizations can also enhance diversity within their organization. A more diverse workforce is a healthier and more motivated workforce, which can further contribute to employee retention. 

By prioritizing a sustainability program, organizations can ensure they continue strong into the future. 

improved financial health 

Sustainability by nature helps an organization save money, reduce its environmental impact, and improve overall efficiency, which leads to long-term profitability. This can happen through a variety of ways, including: 

• Energy efficiency: Through ESG data collection and actionable reports, organizations can identify areas of improvement, therefore saving costs on energy and reducing overall carbon footprint.  
• Resource conservation: By not only conserving resources – such as energy and water – organizations can also work towards a more circular economy, therefore creating healthier communities and more sustainable business practices. This can have a huge impact on long-term profitability. 
• Supply chain efficiency: By sourcing materials locally where possible, and streamlining transportation costs, a business can improve profitability on logistics and reduce its carbon emissions.  
• Increased overall efficiency: By using ESG tools, like ESG SaaS platforms, a company can synchronize all its data and reporting across the entire organization. Any inefficiencies or areas of opportunity can be identified right away.  

attract new customers 

Just as a healthy sustainability program can attract quality talent and entice investors, it can also help attract new customers in a number of ways.  

As transparency is an integral part of ESG reporting and sustainability, customers will look for companies that promote a sustainable future through responsible business practices. If it's a choice between another company or yours, and yours has a robust sustainability program, customers are more likely to support businesses that are making a positive impact on their communities. 

In short, a socially responsible organization will differentiate itself from its competitors, which can be an incredibly powerful selling point for customers. 

how can you incorporate a sustainability program in your organization? 

If your organization is just getting started with your sustainability program, it can be a bit overwhelming. It’s quite an undertaking. But there are resources available to help. Here are a few key ways you can incorporate a sustainability program in your organization.  

identify your sustainability goals 

Each organization is different, with different sustainability goals, and solutions are not one size fits all. By identifying your goals, you can create a workback plan that divides those goals into actionable steps and then create teams to oversee each goal within your sustainability governance.  

It’s important when identifying your sustainability goals, that you familiarize yourself with all regulations that are applicable to your organization – including national, international, and regional regulations. When creating your sustainability governance team, this education should be a critical part of creating your sustainability program, as that team will lead the way within the organization.  

assemble a cross-functional team 

Most organizations are too large to not have a cross-functional team responsible for developing, implementing, and overseeing a sustainability program. 

When creating your cross-functional team, gathering talent across the board can create a dynamic team. The first task the team should undertake is familiarizing themselves with all applicable rules and regulations, and how those regulations impact your business activities.  

Your team should be able to identify reporting risks and teach interdepartmental team members about all reporting requirements. Together, they should work towards defining each department’s roles and responsibilities, ensuring all disclosure requirements are met and actionable steps are taken.  

adopt ESG SaaS company-wide 

SaaS (software-as-a-service) is a special type of software that uses secure cloud computing to manage all physical and software resources that an application would normally use. Examples of SaaS include Salesforce, Google Workspace and Microsoft Azure.  

ESG reporting SaaS is a type of software that focuses solely on ESG data gathering, storing, organizing, and reporting, all within a secure cloud environment.  

There are many benefits to adopting ESG SaaS company-wide. Some of these benefits include: 

• Cloud-based access, where data can be entered by multiple team members throughout the organization and at different locations 
• Integration with Internet–Of-Things (IoT) to collect data, reducing redundancies 
• Emissions calculations using verified emission factors 
• Modules designed specifically to align with internationally-recognized ESG standards and frameworks 
• Real-time data updates to provide snapshots of your organization’s progress 
• Customizable templates that can be tailored to your organization’s operations 

Of course, not all ESG software is the same. In deciding which SaaS to adopt, it’s best to consult your team, identify your needs, and iterate your goals. To learn more about ESG SaaS, head over here.