6 Reasons Investing in Sustainability is Key to a Secure Future

Article based on a Forrester study and Devoteam thinking.

On 14 July 2021 the European Union (EU) launched the European Green Deal: policies which will help reduce net greenhouse gas emissions by at least 55% by 2030 across its 27 member countries . Through these measures each Member States committed to participate in the effort and reduce their emissions by 2030. But the European member states are not the only ones adapting and investing in sustainability to reduce their carbon footprint. According to the World Business Council on Sustainable Development (WBCSD) “200 of the world’s largest corporations commit to net zero emissions by 2050”*

There’s no doubt that climate change and global warming have become a universal concern. Everyone from worldwide organizations to private and public companies, and from governments to citizens are aware of the climate emergency and the urgent need to start taking big steps to reduce their carbon footprint.

According to the United Nations General Assembly there are still 16 other Sustainable Development Goals to address. In that case, why do companies not invest massively to reach those?
One plausible reason could be that they struggle to choose where to focus their energy and investment. One of the reasons is that they don’t always recognise the return on investment (ROI) behind their sustainability choices and actions. According to Assess Your Own Sustainability ROI Forrester study: “the corporate world often wrestles with the cost balance of investment in sustainability versus the actual returns that make sound business sense.”

Let’s discover UNILEVER experience on the matter:

• In 2009, the CEO of Unilever, Paul Polman, decided to halve the company’s environmental footprint by 2020, while doubling its turnover. To achieve this Unilever developed the Unilever Sustainable Living Plan (USLP) in 2010 and set new corporate sustainability program standards.
• “The company committed to helping more than a billion people to take action to improve their health and well-being and to resource all agricultural raw materials sustainably by 2020.” — Benoit Leleux & Jan Van Der Kaaij, Winning Sustainable Strategies 
• The results are impressive. According to Unilever, its sustainable living brands deliver more than 60% of Unilever’s growth. Moreover, they also grow 50% faster than the rest of the business. Critically, reducing risks and costs through the USLP has helped Unilever avoid over €1 billion costs. As a result it deliver a total shareholder return of over 230%.  

What this demonstrates is the pressing need for companies to rethink their product. They also need to adapt their business model to clients and shareholders’ new desires.

Investing in Sustainability as an Opportunity

Investing in sustainable development brings several benefits. These cover short, mid and long term benefits that impact a company’s reputation, business and chances of survival. 

Investing in sustainability isn’t just a trend or a moral obligation—it’s a strategic imperative for businesses seeking long-term success. From fostering innovation and attracting top talent to reducing costs and mitigating risks, the benefits of embracing sustainability are undeniable.

As regulations tighten and consumer expectations evolve, businesses that proactively integrate sustainability into their operations will thrive. Furthermore, these sustainable businesses will also contribute to a healthier planet and a more prosperous future for everyone. Embrace sustainability as an opportunity to create a resilient, profitable, and impactful business that stands the test of time.

Are you curious to see how we practice what we preach? Visit our CSR page