Going green seems expensive, doesn’t it? If it wasn’t, everybody would obviously be doing it. Right?
Actually, going green can be quite profitable for a business.
But before we get into why that is, we have to make some concessions first.
- Yes, going green is going to have a higher initial cost
- Yes, going green is going to take some time
- Yes, going green can be a pain in the butt at times
We totally get that.
But the benefits STILL outweigh these negatives by a long-shot. And even with the higher initial costs, going green will save a business much more money in the long run.
With that said, let’s jump right into our list of 10 simple reasons why going green is profitable for businesses.
10 Simple Reasons Why Going Green Is Profitable for Business
1. Improved Company Reputation
Nothing says “Reputable Company” like one that pledges to go green.
When a company decides to go green and embrace eco-friendly practices, their brand gets an instant boost. Everyone likes to see a company that devotes itself to the betterment of the environment.
That improved reputation gives the business a leg-up compared to its competitors, especially if it’s one of the first ones to do it (we’ll get into why it’s really useful later).
As a business continues to become more invested in green practices, their reputation will improve exponentially. This will lead to more sales and more money. Eco-conscious people are willing to spend a premium if it means they are helping out nature.
The best part is that any business can do it. Even if a company doesn’t sell an eco-friendly product, they can still do things like plant trees (for every product sold) and clean up trashed beaches (upon hitting a sales number).
But don’t think a business can just claim its products are eco-friendly without certifications or proof.
Those businesses will be accused of “greenwashing” and have their reputation dragged through the mud, effectively killing sales for a long, long time.
2. Going Digital Equals Money Saved
This one is big for businesses that still rely on paperwork.
At the time of writing this post, it’s 2020. There’s very little reason why a business shouldn’t be able to conduct the majority of their operations online.
The advent of a recent pandemic proves that tons of companies can work without the need for actual papers.
Going purely digital may be tough at first, but the savings would be worth it as paper, ink, and other single-use items would no longer need to be purchased.
Better yet, businesses will be lowering the demand for paper and, in turn, lowering the demand for trees to be chopped down.
More trees and more money in the pocket. What’s not to love?
3. Big Cost Savings
We touched a bit on this in the previous point but want to expand on it here.
Going green results in big cost savings. Here are a few ways businesses can tap into eco-friendly savings:
- Implement policies that conserve energy and save on that power bill
- Recycle plastic and other materials to get some money back
- Install water-saving devices and cut down that expensive water bill
- Utilize energy-efficient equipment and continue to save on the power bill
- Use solar power to conserve energy (save on power bill) and achieve independence from power companies
- Reduce waste in general so that resources last longer
If a company picked up even one or two of these tips, the savings in cost would be sizable and well worth the effort.
4. Generous Tax Breaks
What business doesn’t love tax breaks? Well, going green can net a business a substantial amount of money in the form of tax credits and deductions.
Here are some popular ones that most businesses can take advantage of
- 30% tax credit for solar, fuel cells, small wind alternative energy
- 10% tax credit for geothermal, CHP, and microturbines
- $1.80 per square foot by incorporating high-efficiency energy systems
These are pretty substantial tax breaks, not to mention that doing any of these will also lower power usage and save even more money.
So if going green seems too expensive, it should be a comfort knowing that a chunk of the invested money will be returning to the pocket book.
5. Powerful Marketing Ability
The “going green” image isn’t just limited to the business’ brand! The marketing potential is huge and fairly untapped. More and more companies are realizing this and taking a piece of the marketing pie while it lasts, so other late-to-the-game businesses should be quick to do that same.
Going green allows companies to put a new spin on their products. Consumers typically associate eco-friendly products as higher quality (which they usually are) and are willing to spend more to get them. Companies can use that to help offset the cost incurred by going green.
Companies are also in a position to innovate their product and market it accordingly. It’s impressive to see cutting-edge products and even more so when it’s also eco-friendly.
Going green also improves brand visibility and brand recall.
Eco-conscious consumers are quick to talk about how the products they use are good for the environment. They are also a group of consumers who are quick to recommend green products over non-green products, giving businesses an edge over their competitors.
6. Improved Employee Wellness
A company is only as good as its workers. It’s important to keep them happy and healthy, as companies that do so achieve higher productivity and less absences due to sickness.
Here are some ways that companies can go green for their employees:
- Use Low-VOC (Volatile Organic Compound) Products. Paint, machinery, and even furniture made with VOCs can release dangerous fumes into the air over time, causing a host of health problems that can lead to labor shortage.
- Embrace nature light. Not only does it save on the power bill, but it also helps alleviate depression, fatigue, and stress.
- Regularly clean ducts to remove contaminants and irritants. Experts recommend cleaning them out at least once every 5 years.
- Get some indoor plants. They spice up the decor and improve air quality. Win-win!
- Allow work-from-home opportunities when possible. Each employee that doesn’t have to come in means less in carbon emissions and saves them time/money (which they’ll very much appreciate).
Going green improves morale, productivity, and attendance. These are all key ingredients in achieving higher profits for any respectable business.
7. Recruit Fresh Talent More Easily
A recent study discovered that young, fresh talent are more willing to work for a company that practices environmentally-friendly behaviors even if it came with a pay cut.
“If you’d be willing to accept a smaller salary to work for a company that’s environmentally responsible, you’re not alone. In a recent survey, nearly half of all respondents and three-quarters of millennial workers said the same thing; more than 10% of workers said they’d be willing to go as far as to take a $5,000-$10,000 pay cut.”
The study also stated that young workers were far more likely to stay with a company that offered sustainable policies and have left jobs that failed to implement such policies.
Those that stayed with sustainable companies were also more productive.
“Nearly 70% of respondents said that if a company had a strong sustainability plan, it would affect their decision to stay with that company long term. More than a third said that they’ve given more time and effort to a job because of their employer’s sustainability agenda. Another 30% said that they’ve left a job in the past because of the company’s lack of a sustainability plan.”
It’s becoming more and more important for young employees to work for companies that demonstrate eco-friendly behaviors.
We care about the environment now more than ever before, and that’s not changing anytime soon.
Businesses need to adapt or risk losing out on premium, talented workers.
8. High Consumer Demand
More and more people are interested in green, eco-friendly products. And as consumer demand rises, there needs to be products that fill that need. Businesses that capitalize on the opening in the market stand to earn millions of dollars.
A quick search on Google Trends reveals that more people have been searching “Eco-Friendly” compared to a mere 5 years ago.
It’s clear that consumers are looking for greener companies that offer greener alternatives to products that have dominated for decades.
Businesses have a strong financial incentive to fill that need and reap the monetary rewards.
9. Stronger Online Presence
Most businesses know that having a strong online presence can make or break their sales. It’s simply too important to ignore. As a result, many companies are always looking for ways to strengthen their online authority.
Going green can give a company the opportunity to establish itself as a leading authority in its respective industry.
This can pave the way towards becoming a market leader, meaning tons of sales and strong profits year in and year out.
It’s not that difficult to do, either. Businesses can get started through a blog documenting all of the eco-friendly changes to their policies. They can expand to include thoughts on current events and solutions to common eco-centric problems.
It’s better for businesses to start implementing these changes now, otherwise they run the risk of trying to piggyback off the success of another eco-friendly company.
We don’t have to tell you how that goes for most companies.
10. Stay Ahead of the Regulation
The United States Environmental Protection Agency (EPA) will continue to become more involved in business regulation. As the consumer demand rises, regulations are sure to tighten in order to protect the consumer.
Businesses that don’t make the necessary changes now might be forced to do it later, resulting in more money lost in transition than if they started earlier.
Going green also allows companies to position themselves as a replacement to companies forced to transition.
While the non-green companies are restructuring their business to fit new regulations, eco-friendly front-runners can swoop in and take their place.
It’s more profitable for a business to go green now. Not only do they avoid the risk of getting tripped up, but they also position themselves to make more sales in the future.
And those are our 10 simple reasons why going green is profitable for businesses. We hope that you enjoyed it.
And remember, this doesn’t just apply to big businesses. Small businesses can profit from going green too! There’s a lot to be gained by embracing an eco-friendly worksite.
As always, thanks for reading! If you have a question or just want to say something, please leave a comment down below. We’d love to hear from you!
Until next time, let’s continue to strive towards a greener, better way of living.