In recent years, consumers have shifted their preferences to more eco-friendly and sustainable practices and products. As a result, it has created many brands that are truly making efforts towards reducing environmental impact. So right from sustainable materials to reduction in packaging waste, these brands are committed to change. But does that mean less profits or loss in business? Not at all! Let’s dive a little deeper into it ahead.
The explosive growth of Eco-friendly brands
A large number of brands have started realizing that being eco-friendly is not just good for the planet but business. As consumers are flocking to eco-friendly options, brands adopting the practices have gained a larger share of industries. These brands are also attracting top talent and investment.
Furthermore, certifications like B Corp allow the consumer to assess whether the brand meets rigorous standards or not. These certifications are a direct indication of meeting social and environmental performance. Some of the largest companies like Athleta, etc have already adopted this certification.
Eco-friendly firms like Allbirds, Rothy’s, and Everlane have disrupted the garment industry. Just two years after releasing their eco-friendly trainers made of wool and eucalyptus, Allbirds had sales of $100 million.
By using recycled plastic bottles to make fashionable flats, Rothy’s generated more than $140 million in sales. Furthermore, Everlane was valued at $250 million thanks to their radical transparency about their moral factories and environmentally friendly materials.
These companies have successfully shown that consumers are willing to pay more for items that uphold ethical and environmental standards. Their rapid growth demonstrates how social and environmental responsibility can be a crucial distinction for products and brand identification.
Major benefits from embracing sustainability are also being realized by mainstream companies. Seventh Generation and Ben & Jerry’s are two examples of Unilever’s “Sustainable Living” brands that are growing 69% faster. By 2050, General Mills plans to use only renewable energy sources and emit zero emissions. Their Annie’s organic brand therefore experienced double-digit growth.
Green results on green investments
Sustainable practices are financially rewarding for forward-thinking companies across industries.
IKEA cut energy expenditures by 70% in some areas by investing $2.5 billion in wind and solar energy to power its businesses. Recently, Nestle recycled 94% of its packaging, greatly lowering disposal costs. Apple invested $3.2 million to upgrade its recycling robots. This resulted in savings of $773 million just in the first year due to the recovery of rare earth metals.
Moreover, Apple aims to become fully carbon-neutral by 2030. This is why they have also stopped giving various accessories to their phones. People support them and it is the first trillion-dollar tech company in the world.
Companies that use sustainable products also get cost savings. H&M reduces costs by using recycled polyester in 45% of its items instead of textiles made from petroleum. To drastically reduce plastic usage, L’Oreal revamped the Biolage and Matrix shampoo bottles. That too using more than 50% recycled plastic.
These companies can prosper because of the high level of customer demand for eco-friendly items. Today, over 62% of customers are open to altering their purchasing patterns to lessen their impact on the environment. Premium prices may be charged by sustainable businesses while also increasing profitability due to material and energy cost reductions.
Comprehensive sustainability practices
Sustainability has been thoroughly interwoven into the missions, cultures, and business practices of the world’s top green corporations.
By 2024, Adidas wants to make all of its clothing from recycled polyester. By 2025, 90% of emissions from their facilities will be cut. They will use renewable energy. Starbucks intends to give back more to the environment than it takes by becoming resource and water-positive.
Through the use of battery technology and renewable energy, Tesla is upending the car industry. Apple promotes supply chain conservation. This is while utilizing only renewable energy to power its headquarters. Google has purchased renewable energy to offset all of its operating electricity needs.
Additionally, businesses are enforcing social responsibility. This is by ensuring that workers get livable salaries and mandating ethical behavior throughout supply chains. Sustainability is increasingly becoming a central organizational strategy rather than merely a marketing communication term.
The path ahead
Although there is still a long way to go, the growth of sincere eco-friendly companies is encouraging. It proves that profitability need not be sacrificed for the sake of sustainability. Moreover, these success tales will encourage more companies to include environmental care in their business plans.
Eco-friendly practices will advance from a specialty to a standard as customers continue to demand sustainability. More sectors will go in the direction of eco-friendly practices, recyclable materials, ethical sourcing, and renewable energy. How can you become eco-friendly with the smartest strategies?
The answer is by attending the most innovative and expert-ridden conferences and forums. Book a seat for 2nd net zero for the life science forum in Berlin, Germany for one such event that can take your business to new heights! Visit future-bridge.eu and netzero-events.com or follow us on our social media to track other energy use and decarbonization events.