Business Case for the Environmental Principles
Business gains its legitimacy through meeting the needs of society, and increasingly society is expressing a clear need for more environmentally sustainable practices. One way for business to demonstrate its commitment to greater environmental responsibility is by changing its modus operandi from the so-called "traditional methods" to more sustainable approaches.
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Traditional approaches
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Sustainable strategies
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Such a change in business strategy brings with it a number of benefits. UNEP-DTIE has pinpointed the following reasons why a company should think about improving its environmental performance:
- Application of cleaner production and eco-efficiency leads to improved resource productivity
- New policies in economic instruments (taxes, charges, trade permits) are rewarding clean companies
- Environmental regulations are becoming tougher
- Insurance companies grant preferential coverage to cleaner, lower risk companies
- Banks are more willing to lend to a company whose operations will not burden the bank with environmental lawsuits or large clean-up bills
- Environmental stewardship has a positive effect on a company's image
- Employees tend to prefer to work for an environmentally responsible company (such a company also often has good worker health and safety records)
- Environmental pollution threatens human health
- Customers are demanding cleaner products
What are the opportunities for business strategies advancing environmental responsibility and sustainability?
- Improve corporate reputation and enhance brand image
- Elevate employee morale and productivity
- Stimulate innovation and generate ideas
- Gain competitive advantage
- Improved relations with customers and stakeholders
- Establish or improve reputation with investors, banks, bond agencies, etc.
How does improving environmental performance affect business's bottom line?
- Reduced manufacturing expenses
- Reduced recruiting costs
- Increased Productivity
- Reduced water, energy, and consumables expenses
- Lower Waste Disposal Costs
- Resource and Energy Efficiency
- Reduced risk and easier financing
- Lower Environmental Fines