Posted in Business, Eco-friendly, Environment, Finance, Sustainability on Sep 20th, 2011
In my last two blogs, we looked at how company sustainability efforts can help generate more revenue because of its enhanced brand image as a responsible corporate citizen, as well as more revenue from new products and new markets. This week, we will look at additional revenue from selling services and leasing products.
Posted in Business, Eco-friendly, Sustainability on Sep 6th, 2011
In my last blog, we outlined how companies can gain more Business-to-consumer (B2C) and business-to-business (B2B) revenue from a more responsible company brand. This week we will look at a second way that sustainability strategies bolster revenue: the green attributes of the company’s products and services become differentiators.
Posted in Business, Eco-friendly, Environment, Sustainability on Aug 23rd, 2011
People buy from companies they trust. More and more, customers prefer to do business with companies that are doing good things and are responsible. The responsible image of the company builds loyalty with customers who identify with the values of the company – their loyalty is more to the company than to its products. Even [...]
Posted in Business, Environment, Finance, Sustainability on Aug 9th, 2011
We want leading sustainable companies to win. We want them to take market share away from unsustainable competitors — to take a bigger slice of the existing market pie. The payoff to a company for featuring the reduction of its product’s energy requirements and environmental impacts is improved brand image and reputation. This increased mind share is furthered by endorsements by external environmental agencies, generating beneficial “noise” around the products attributes and free publicity. That contributes more momentum to the revenue gains.
Posted in Business, Eco-friendly, Environment, Finance, Sustainability on Jul 26th, 2011
So the credit standing of borrowing firms is influenced by legal, reputational, and regulatory risks associated with environmental accomplishments. Companies with weaker environmental performance pay a premium for debt financing and companies with better scores pay less for debt. The study found that spread can be as much as 64 basis points (0.64%) and it is growing.
Posted in Business, Finance, Sustainability on Jul 12th, 2011
How lenders respond to a company’s request for financial assistance is somewhat driven by the applicant’s environmental, social, and governance (ESG) track record. Borrowers require financial capital in order to purchase equipment or new premises in which to produce its goods or services.
Posted in Business, Eco-friendly, Environment, Sustainability on Jun 28th, 2011
There are only two reasons a company changes: to avoid risks and / or to capture opportunities. They go for the upside, and / or run from the downside. They are attracted to the carrot, and / or want to duck the stick; the yin and / or the yang. Trying to convince a company to fully embed sustainability into its strategies and operations requires a very compelling business case. The standard business case is made up of these same two parts, shown in the figure below.
Posted in Business, Eco-friendly, Environment, Sustainability on Jun 14th, 2011
By aligning ESG-related benefits with the value chain framework, it becomes evident how and where each benefit strengthens important links. Using relevant frameworks improves sustainability champions’ credibility. Being able to relate the so-what’s of ESG benefits to the standard value chain enhances that credibility further.
Posted in Business, Eco-friendly, Environment, Finance, Sustainability on May 29th, 2011
We need to make it easy for CEOs, CFOs, and others in the C-suite to see how embedding sustainability strategies into the company’s strategies and operations will contribute to the firm’s success. That is, we need to connect the dots between typical financial statements and the benefits that can be realized from smart environmental, social, and governance (ESG) approaches and programs. Aligning ESG benefits with income statement elements helps executives see the relevance of sustainability initiatives to their current financial priorities.
Posted in Business, Eco-friendly, Environment, Sustainability on May 17th, 2011
What is the secret of selling executives on using sustainability strategies? Show how the benefits of those strategies help them achieve their existing priorities on which they are already being measured. Executives are juggling way too many key focus areas to welcome adding another one like “sustainability” to the batch. That means sustainability champions need to align the set of benefits that are yielded by smart environmental, social, and governance (ESG) / sustainability strategies with executives’ top priorities.
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