
SUSTAINABLE BUSINESS P.O.V.
Futureproofing Business
SUSTAINABILITY IS A BUSINESS IMPERATIVE – THE BASICS
by Stephanie Tonnesen Hornback
January 15, 2025
It’s 2025 and we have been talking about sustainability for a long time. We know that it’s more than just a buzz word. It’s the key to the survival for any company in the coming decades (including yours).
Sustainability provides a competitive edge – it’s a source of innovation and differentiation. Companies that lead in sustainability set industry standards, capture new market opportunities and strengthen their brand reputation.
It also has a direct impact on the bottom line.
According to McKinsey & Company, being sustainable reduces costs and can affect operating profits by up to 60 percent. Employee productivity also increases. A University of California, Los Angeles study found that companies that voluntarily adopt international “green” practices and standards have employees who are 16 percent more productive than average.
Matt Mayberry, founder of Wholeworks, wants us to move beyond the notion of false tradeoffs and be able to connect the dots that lead to sustainable value creation in business.
In a recent whitepaper, Mayberry writes that, “there are many ways to both do well and do good in business, but they are often dismissed due to the inability to effectively add these two objectives together. As a result, managers may fail to recognize the potential of sustainability to stimulate innovation, increase revenues, decrease costs, reduce risks, attract capital and strengthen the business in other ways.”
The truth is sustainability is no longer a "luxury" or a niche concern. Rather, sustainability is a critical business imperative for all organizations, regardless of industry.
Let’s dive deeper into how and why this is reality.
Regulatory Pressure
Governments and international regulatory organizations like the IFRS Foundation, International Accounting Standards Board and the International Sustainability Standards Board are introducing stricter environmental laws and regulations to combat climate change, reduce carbon emissions, and promote sustainability. Businesses that fail to comply face penalties, reputational damage, and the risk of being left behind as markets shift toward greener practices.
According to a recent EY Insights Report on 2025 ESG trends, “the financial sector – funds, banks, financial institutions and insurance companies are bracing as regulatory shifts reshape sustainable banking practices worldwide.”
Consumer Demand
Today's consumers are more conscious of their environmental and social impact. Studies consistently show that people prefer to buy from companies that demonstrate sustainable practices. Businesses that fail to adapt risk alienating the growing segment of eco-conscious consumers.
Sustainability is a core expectation, regardless of industry.
Investor Expectations
It also is a top priority for investors. Environmental, Social and Governance (ESG) criteria are increasingly used to assess the long-term viability and profitability of a company. Those with strong sustainability practices often attract more investment and enjoy better access to capital.
Despite anticipated anti-ESG regulations around shareholder rights, climate disclosure and ESG fiduciary rights, Corporate Knights sustainable business and finance reporter Eugene Ellmen cites a recent survey by the U.S. Sustainable Investment Forum. It found that 50 percent of long-term ESG-oriented investors plan to maintain their current level of ESG activity in 2025, while 29 percent said they plan to increase it moderately and 10 percent plan a significant expansion. Ellmen goes on to write that “sustainable investing has built a sufficient strength in the last decade to withstand the growing conservative backlash.”
Cost Savings and Efficiency
Sustainable practices, such as energy efficiency, waste reduction, and resource optimization, often lead to significant cost savings. For example, companies that invest in renewable energy or circular economy models can reduce operational costs while building resilience against resource scarcity.
A recent Forbes op-ed by Forrester explains that 2025 will see companies embracing circular economy opportunities in reducing, reusing, repairing, refurbishing and recycling. Implementing lifecycle assessments that help both employees and consumers understand the environmental impact of their product choices will also be on the rise.
Talent Acquisition and Retention
Employees, especially younger generations, want to work for organizations that align with their values. A commitment to sustainability can help attract top talent and foster a more engaged and motivated workforce. And, these employees want a voice in helping their company achieve its green goals. A recent Deloitte report finds that two-thirds of Gen Z and millennial employees believe in their ability to drive organizational change and perceive that their feedback is being acknowledged and incorporated by their organization.
Resilience and Risk Management
All business operates on a global stage – this is true for the kids running a lemonade stand, the local mom-and-pop grocery store and the multinational conglomerate, all of whom are subject to supply chain issues. Climate change, resource scarcity, and global economic shifts pose significant risks to all businesses. Sustainable practices help organizations build resilience by mitigating risks associated with employees’ wellbeing, supply chains, regulatory changes and reputational harm.
Business leaders are very much aware of the risks. Deloitte’s 2024 CxO Sustainability Report finds 70 percent of c-suite executives believe climate change will have a high or very high impact on their business’s strategy and operations over the next three years, up from 61percent in 2023.
What does this all mean in the end? Sustainability is intrinsically linked to long-term business success. Companies that prioritize sustainability are better equipped to adapt to changing market conditions, innovate and ensure their operations remain viable in the future.
In the months ahead, we’ll focus on best practices and realistic strategies for organizations of all shapes and sizes. In doing so, we will be exposed to ideas that prepare us to face the inevitable challenges (and opportunities) that will arise for our own businesses in a rapidly changing world. We will learn together ways to build a better, more sustainable future – for our economy, our society and our planet.
Here’s to futureproofing business.

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