Imagine the “Industrial Revolution” and you quickly conjure up images of smoke stacks belching black fumes into the sky—definitely an environmental blight. Industries may have come a long way from visual smokescreens, and leading companies using sustainable methodologies are reaping significant benefits.

Endurance it's not just for big companies; Small and medium-sized companies can, and perhaps should, incorporate sustainability efforts into their business models as a strategic opportunity for growth.

Related: Top 3 Sustainable Business Practices for Entrepreneurs

The business case for sustainability

Sustainability efforts for businesses refer to practices that aim to minimize environmental impact. However, ENDURANCE can be used as a term to include all components of “ESG” (environmental, social responsibility and governance). Common sustainability practices include reducing waste, conserving energy, sourcing materials responsibly and supporting ethical labor practices.

The benefits of choosing sustainable business practices are realized far beyond their positive environmental impact, and consumers are increasingly giving preference to businesses that choose environmentally friendly and socially responsible practices. A joint 2023 McKinsey and NielsenIQ study analyzing 44,000 brands across 32 categories reported that products making ESG-related claims averaged 28% cumulative growth over a five-year period, while competitors that did not make ESG claims grew only 20%. It is clear that consumers are willing to pay more for sustainable products and brands that demonstrate environmental responsibility.

Adopting sustainable practices can strengthen any company's competitive advantage. Businesses have opportunities to become more profitable in the following areas:

• Reduction of operational costs: Through energy efficiency, waste reduction and improved supply chain management, businesses can increase profitability. of US Department of Energy reports that businesses can save up to 30% on energy costs by adopting energy efficient measures. Focusing on sustainability practices to manufacture, transport and dispose of products can save companies money, provide a better customer experience and minimize negative environmental impact. Companies can also benefit from incentives such as tax breaks or grants for sustainable practices.

• Build brand loyalty: Brands perceived as more sustainable can drive more returning customers who are willing to pay for the products, even if they are priced higher than similar products. By focusing on cost-effective and environmentally friendly practices, these businesses can stand out in crowded markets.

• Customer satisfaction: Consumers increasingly want to know more about where their products come from and how they are made, especially Gen Z consumers. Gen Z has been shown to be informed consumers who will research and weigh options before making purchasing decisions, placing a strong emphasis on brand ethics and ESG.

Real world success stories

Some companies show how embracing sustainability leads to global success.

Unilever's Sustainable Living Plan has significantly reduced its environmental footprint while driving business growth. Unilever's “Sustainable Brands” that practice sustainable sourcing and waste reduction have outperformed the rest of its portfolio. In 2019, Unilever DESIGNATED that its enduring brands grew 69% faster than the rest of the business and accounted for 75% of the company's growth. Seven of Unilever's top 10 brands are sustainable lifestyle brands.

Patagonia is another inspiring example. The outdoor clothing brand has built its identity around it environmental responsibilityfostering a loyal customer base that values ​​ethical consumption. Their commitment to sustainable practices has significantly increased their global presence.

The medium-sized business, Lush, is known for its handmade cosmetics, ethical sourcing and cruelty-free products. Lush introduced “naked” packaging and many of its products (think soaps and shampoos) are produced without any packaging or sold with recycled and recyclable packaging materials. The company reports continuously strong revenue growth and maintained financial stability even during the Covid-19 pandemic, showing strong consumer demand for its products.

Related: It's Official: Customers prefer stable companies

Valuable tips for SMBs

Integrating sustainability into business strategies doesn't have to be scary. Here are some practical tips for SMBs:

• Optimize supply chains: Work with suppliers that prioritize sustainable practices, source from sustainable companies/natural resources, and create the product as close as possible to where you distribute the product. This not only increases your overall sustainability profile, but can also reduce costs in the long run.

• Reducing resource consumption: Consider investing in renewable energy sources like solar or wind to reduce dependence on fossil fuels and lower energy costs, and at the very least, make sure your company has recycling and energy efficiency policies in physical office structures.

• Lever technology: Consider offering virtual office solutions to both employees and clients where appropriate. Allowing employees to work remotely can reduce the need for daily commutes and the need for a large office space. Holding large company meetings virtually can also be an environmentally friendly solution, as can digital solutions that reduce paper consumption and simplify operations.

Balancing growth and sustainability can be achieved through incremental changes that align with business goals.

Overcoming challenges to sustainability

While the road to sustainability is promising, it can be daunting due to complex government regulations and the limited resources of small businesses. However, these obstacles can be overcome through strategic partnerships. Cooperation with companies like INS Global that understand how to support businesses with compliance with local sustainability standards can help you implement effective practices while ensuring compliance with necessary regulations. Start small, measure your impact and scale efforts as resources allow.

Related: How to harness the power of small business sustainability to drive profits and capital

Sustainable growth and expansion

When businesses enter new markets, it is important to comply with local sustainability standards. Understanding regional environmental regulations and consumer expectations is critical to success. Experienced partners can support businesses in maintaining their sustainability goals during international expansion. Using Employer of Record (EOR) services can simplify compliance with local labor laws, while ensuring that sustainability initiatives are supported across borders and help ESG reporting.

Sustainability is not just a trend or a “feel good” option; is an essential driver of long-term success for businesses looking to expand globally. By incorporating sustainable practices into existing growth strategies, businesses can improve their competitive advantage and make a difference for the planet. As the global market increasingly rewards responsible ESG practices, now is the time for businesses to do so embrace sustainability and unlock their full potential for success.