As more companies pivot to a sustainable business model, we are beginning to see positive effects across the board. Businesses are giving more back to the markets they serve and in turn are reaping unique benefits of their own. The biggest of which includes an increase in longevity and stability. The reasoning behind the emerging trends is quite simple.
The companies and corporations who make commitments to sustainability end up directly affecting not only the economy, but their community, and the environment. Sustainably minded businesses entrench themselves in the systems mentioned above and end up becoming resilient to ordinarily devastating blows.
Managing the “triple bottom line”
It’s no easy task to switch gears to a sustainable business model. The transitions requires a top down approach in order to be successful. This style approach is often referred to as the “triple bottom line.” Now, instead of working on initiatives solely for a profit driven bottom line, businesses must also work towards a people and planet driven bottom line. Everything the company does moving forward must somehow affect profits, people, and/or planet.
- Profits
More often than not, the people and planet initiatives work out positively for the profit bottom line. For example, a company makes a commitment to the planet and goes completely paperless. The company also ends up increasing profit margins because of the money they saved by no longer purchasing paper.
- People
In order to take care of the people, companies must tackle social issues and do their part to assist the community they reside in. Some examples of this could be donating resources towards a community garden or calling on their employees to volunteer in the community.
- Planet
Lastly, companies adopting a sustainable business model work towards initiatives to support the planet. Making a switch to renewable energy sources for their facilities is a popular option among many sustainability minded companies. Supply chains are a popular area tackled by planet initiatives. The supply chain is often analyzed and optimized for better fuel mileage, less drive time, and faster shipping – all of which reduce carbon emissions.
The future looks bright for the companies adopting a sustainable business model. As we continue to watch more companies take the plunge, we’ll also see a greater impact on our people and planet.