Balancing purpose and profits: a guide by Ben, our Head of Sustainability
Nowadays, potential customers, from private shoppers to businesses of any size, expect their suppliers to do more when it comes to sustainability. The average consumer is more environmentally aware than ever, and is looking for tangible efforts in creating a more sustainable future.
Many business owners, however, fear that switching to a sustainable business model would slash their profits or negatively impact their bottom line.
As the Jump Group’s Head of Sustainability, the concept of "sustainable business" being an “investment,” not an “expense,” is one that I strongly resonate with. Sustainability and profitability are not mutually exclusive. The long-term benefits of adopting a sustainable business model will increase not only your profits, but also your team’s satisfaction and your customers’ trust.
How do we balance sustainability with profits at Jump?
Short term investments vs. long term gains
Firstly, it’s essential to understand that adopting a sustainable business model requires an initial short-term investment, but it will ultimately prove profitable in the medium to long term.
Being a sustainable business doesn’t just mean giving back to the planet, it also means supporting your workers. For example, being a certified "Living Wage Employer" allows you to retain high-performing staff (and, consequently, to keep valuable knowledge and skillsets within the company). A valued team is a happy team; and a happy team is more willing to go the extra mile. So, while increasing salaries undoubtedly requires an initial financial investment, it will repay your business tenfold in terms of team performance and satisfaction over the medium to longer term.
As already mentioned, today’s customers (whether your business operates Direct to Customer or B2B) are much more aware of and sensitive to sustainability issues. Your company’s stance on these matters can either instil trust in them or put them off ever working with you. A strong ethical stance in favour of workers’ rights, environmental justice, and ethical business can increase your target audience’s trust in your business, making them excited and proud to work with you (and buy from you). If you’re a B2B supplier, the sustainable services you offer might even help boost the sustainability stats of your clients’ businesses—a strong selling point in competitive and oversaturated sectors. Participating in ethical business practices also opens your company to a vast and supportive community of like-minded businesses, charities, and organisations, allowing you to partake in impactful campaigns and projects.
The sustainability strategy
That being said, adopting a sustainable business strategy isn’t akin to throwing mud at the wall and seeing what sticks. It is a "strategy" in the truest sense. A company needs to identify the most considerable potential positive impacts, specific to their industry, sector, market, customer base, location, etc. For example, a manufacturing company (like Jump) has a supply chain that can be made more sustainable. A company with a large staff team will likely see strong profitability from providing a Living Wage to its team. A micro-company that only provides services (and no physical products) might be better to think about volunteering in their local community.
In most cases, the initial investment should involve hiring a "sustainability professional" to help determine where the most significant sustainability gains might be—whether it be conducting GHG emissions assessments, modifying supply chain interactions, switching to more sustainable product and packaging materials, or investing in solar and electric vehicles.
Key points of advice from Jump’s sustainability journey so far:
· Define “sustainability”
Your first step must be understanding why sustainability makes sense for your business and industry. In what ways can you reduce your impact? How will that make you stand out in your sector?
· Embed sustainability in the core business model
The most valuable and effective way to “go green” is to start from the centre of your operations. Consider how you can add sustainability to your company’s ethos, or how you can adapt said ethos to be more environmentally and socially conscious.
· Invest in energy efficiency and renewable energy
Renewable energy might be a hefty investment at the beginning of your journey, but a fundamental one in ensuring your business is a force for good. Don’t be afraid to start small!
· Support philanthropic activities
Building strong relationships with other members of your community through philanthropy is a wonderful way of giving back by supporting important causes. You will be rewarded with increased visibility and impactful relationships with other ethical businesses.
· Adopt a circular economy model
Focus on producing as little waste as possible. Recycle and reuse where you can, optimise production methods, and design for longevity.
