Sustainability Won’t Wait: Why Businesses Must Prioritize Progress

Originally published on NRG Energy Insights

Demand for organizations to respond to climate change comes from many directions:

• Investors

  An estimated 85% of investors consider ESG* factors when making investment decisions.¹

  Key takeaway: Sustainability efforts are not just good for the planet; it’s essential for attracting investment and growing your business value.

• Government

  Governments around the globe are increasingly weighing in on sustainability by issuing regulations, guidance, and incentives.²

  Key takeaway: Staying ahead of these regulatory changes is about more than compliance; it’s also an opportunity to lead in environmental sustainability and demonstrate your commitment to a sustainable future.

• Non-Governmental Organizations

  With 70% of its Company Network members from Fortune 500 companies, Ceres not only drives awareness about crucial environmental research — it also sets standards that press businesses across industries to take decisive climate action.

  Key takeaway: Aligning with standards set by leading non-governmental organizations can showcase your commitment to a cleaner future and enhance your brand’s reputation.

• Customers

  3 out of 4 Gen Z and Millennial consumers agree that businesses should communicate more about sustainability goals and social impact.³

  Key takeaway: Transparency and action on sustainability initiatives can significantly bolster your brand’s appeal to and loyalty from customers under the age of 45.

• Employees

  71% of employees and employment seekers say that environmentally sustainable companies are more attractive employers.⁴

  Key takeaway: In today’s competitive job market, a commitment to clean energy and energy efficiency can be a game-changer, positioning your company as an employer of choice.

Business strategy models that combat climate change and implement cost-saving solutions have the potential to give companies a competitive advantage, drive growth, and create long-term value. And yet, the path forward isn’t always clear.

That’s why we’ve created a free, in-depth guide with everything you need to know about developing and integrating a sustainability strategy — from reducing your carbon footprint to engaging with stakeholders.

Get the guide

*Environmental, social and governance (ESG) refers to a collection of corporate performance evaluation criteria that assess the robustness of a company’s governance mechanisms and its ability to effectively manage its environmental and social impacts. Examples of ESG data include the quantification of a company’s carbon emissions, water consumption, or customer privacy breaches. Institutional investors, stock exchanges, and boards increasingly use sustainability and social responsibility disclosure information to explore the relationship between a company’s management of ESG risk factors and its business performance.

¹https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/investors-want-to-hear-from-companies-about-the-value-of-sustainability

²https://www.bakertilly.com/insights/how-mandatory-esg-and-sustainability-reporting-regulations-are-shifting

³https://www.triplepundit.com/story/2024/consumers-companies-sustainability/805051

⁴https://www.ibm.com/topics/business-sustainability#citation1