As companies increasingly focus on environmental, social, and governance (ESG) reporting, the connection between these efforts and tangible business value is a topic of significant discussion. When it comes to the environmental aspect of ESG, also known as sustainability, there are numerous ways in which businesses can leverage this focus to uncover new opportunities.

For instance, a closer look at the IBM Sustainability Software portfolio reveals that many solutions not only contribute to positive environmental impact but also deliver return on investment for businesses. Take the Maximo Application Suite, for example, which facilitates intelligent management of assets such as real estate, escalators, or bridges. By improving the efficiency of these assets, businesses can save money while concurrently reducing emissions and resource usage, thus reaping the dual benefits of cost-efficiency and sustainability.

These opportunities are not confined to large corporations. In the first episode of the Impact-Up podcast, BAE Boats, a startup offering short-term electric vehicle hires for special events, is discussed. These electric boats provide an enhanced customer experience by eliminating engine noise and gas odor. Interestingly, while sustainability is at the core of their business, BAE Boats primarily promotes the experiential benefits of their service and has even experienced growth during the challenging pandemic period.

The key takeaway is that examining all aspects of business operations, including customer touchpoints, can result in reduced costs, product and service differentiation, new market opportunities, and improved environmental outcomes. Although this may entail initial investments, the long-term gains and material benefits, such as enhanced brand reputation, should be considered. This resonates with one of the trends highlighted in the Seven Sustainability Trends report by IBM: “Align business objectives with improved environmental outcomes.”

If you want to delve deeper into aligning your business with sustainability goals, you can check out the full report here.

FAQs

What is ESG reporting?

ESG reporting refers to the practice of evaluating and publicly disclosing a company’s performance in three key areas: environmental, social, and governance.

How can businesses benefit from focusing on environmental sustainability?

By prioritizing environmental sustainability, businesses can reduce costs, differentiate their products and services, tap into new market opportunities, and improve their environmental impact, thereby enhancing brand reputation and long-term viability.

Are sustainability investments worthwhile for businesses?

Although sustainability investments may necessitate upfront expenses, they can yield substantial long-term gains, making them a valuable consideration for businesses.

Where can I learn more about aligning business objectives with improved environmental outcomes?

You can explore the full IBM report on sustainability trends to gain deeper insights into aligning business objectives with environmental outcomes.