DISCOVER THE ECONOMIC ADVANTAGES OF EMBRACING SUSTAINABILITY. GOING GREEN ISN’T AN ADDITIONAL EXPENSE. INSTEAD, WHEN MANAGED EFFECTIVELY, YOUR WASTE BECOMES A VALUABLE RESOURCE, POSITIVELY IMPACTING YOUR BUSINESS’S BOTTOM LINE.
As economic uncertainty looms with increased interest rates, inflation, and rising fuel costs, businesses face the challenge of planning for the tough winter ahead and a sustainable future.
We explore the relationship between sustainability and financial stability.
in brief
- Economic uncertainty is having an impact, and businesses are having to think long-term to make considered investment.
- Now isn’t the time to ignore the issue, but to instead understand how sustainability can build in economic benefit to your business practices.
- Especially because consumers need reassurance that the sustainability claims businesses have been making won’t be left by the wayside as the going gets tougher.
- Going green isn’t another undue expense – when treated properly, your waste can be a valuable resource that can make a difference to your bottom line.
Economic challenges and long-term strategy
The economic landscape demands careful planning amid uncertainties. The gut reaction in a time of uncertainty is of course to cut spending in non-essential areas. But how do businesses decide what is essential? And how can they maintain momentum on sustainability goals whilst also supporting their bottom line?
Industry conversations are highlighting how important it is to look beyond the short-term when thinking about business goals. There is concern across sectors such as retail and food and drink that businesses will lose momentum on sustainability, with research in Food Navigator pointing to how value for money is fast becoming consumers’ number one priority.
To stay on track to achieve growth and hit sustainability targets, now is not time for indiscriminate cutting back, but for considered investment in the business outputs that will really have an impact.
Circular economy: Turning waste into assets
Adopting a circular economy approach enhances production efficiency and turns waste into economic assets.
Sustainable investment may just hold the key to offering that value to consumers. As Business Green explored, businesses that adopt a circular economy approach to production – one that prioritises the reusing and recycling of materials – will “help us do more with those material flows”, such as unlocking more efficient production streams and economic benefits from waste produced.
As our MD Ed Pigg discussed in Manufacturing Digital, rebates can be a great tool for making a return on your waste. In fact, Axil’s partnership with Whirlpool saw the kitchen appliance manufacturer receive a £400k increase in rebates from its waste streams over 2020-2021, a significant economic return from a sustainable investment.
Pictured left, Ed Pigg, Managing Director at Axil Integrated Services.
Of course, the impact of this goes beyond business too. In our recent report ‘Exploring the Environmental and Economic Opportunity of ESG’, we found that just 24% of businesses say they actually have a clear path to achieving their sustainability ambitions.
Employee engagement and ESG commitments
The link between employee satisfaction and a company’s commitment to Environmental, Social, and Governance (ESG) issues is critical.
Businesses risk damaging relationships with employees if they compromise on sustainability investments.
On top of that, two in five (38%) employees said they would look for a new role if they thought their organisation was not doing enough on ESG issues. Now is not the time to dial back on sustainability investments – not just because your bottom line will suffer in the long term, but because you’ll damage crucial relationships with your employees too.
So, although it may be tempting in a period of such strain, it’s essential not to put your head in the sand.
We know that waste management is far from an undue expense – your waste is a valuable resource that can unlock real economic benefit to help you weather the storm.
Customer prioritisation of sustainable practices
As consumer priorities shift towards value for money, businesses face a critical challenge.
Customers are increasingly concerned about businesses potentially backtracking on ESG promises, particularly amid inflation. To maintain trust, businesses must proactively address sustainability concerns, emphasising the need for strategic, value-driven investments. Sustainable waste management practices, including waste segregation, emerge not only as cost-effective but also in alignment with customer preferences for environmentally responsible production.
Ultimately, sustainable investment becomes the key to offering lasting value to consumers.
Real-world impact
A recent study from recipe box service Gousto in edie highlighted the real-world impact of sustainability, stating that almost eight in ten (78%) people are concerned about the potential backtracking on ESG promises due to inflation.
As we discuss in our ‘The Importance of Waste Segregation’ blog , considered waste management with techniques such as waste segregation can help you identify valuable materials with rebate value, cutting down on your overheads by reducing the costly mixing of waste streams.
Conclusion
Embracing sustainability safeguards the bottom line, nurtures employee relationships, and aligns with the growing demand for environmentally conscious practices.
Waste management is not an undue expense; rather, it is a valuable resource that can unlock economic benefits to help you weather the storm.
iN the news
- Sustainability trend takes back seat as cost of living crisis bites – Food Navigator
- Sustainable supply chains are even more vital in the cost of living crisis – The Grocer
- Cost crisis: Are businesses backtracking on sustainability, just as they need to step up? – edie
- Why losing focus on sustainability risks deepening the UK’s cost of living crisis – Business Green
- The Importance of Waste Segregation – Axil Integrated Services
- From rubbish to revenue: how manufacturers can turn their waste into a valuable resource – Manufacturing Digital
