Scaling Retail

3 Insights on How to Assess the ROI of Sustainability

www.scalingretail.com

Corporate sustainability is no longer seen as just a costly PR move used to appease social pressure; it can truly prove to be both cost saving and profitable when implemented the right way.

The issue with measuring the return on sustainable investment is that there are a number of benefits that are hard to numerically quantify.

Sure, it’s easy to measure the return on using more energy efficient lighting or cutting back on waste disposal fees, but how does one accurately estimate the ROI on social improvements that lead to more motivated employees and ultimately greater productivity?

Because implementing a sustainable project requires a good deal of capital upfront, it’s important to be able to calculate both the quantitative and qualitative benefits, and how they will contribute to your ROI, in order to make profitable decisions.

3 Key Insights

#1 Brands with Purpose Grow Faster

Over the last decade we’ve definitely seen a spike in brands that integrate a purposeful stance within their business. This is a direct response to an over taxed planet and poor human working conditions around the world, and has been substantiated by a market demand for such purpose driven brands.

Consumers have moved from passive to active consumption, and their influence on corporate responsibility no longer validates the fundamental incongruity between harmful business practices and compensation through charitable donations.

#2 The Relationship Between Human Impact and Profits

Human capital is the core of every business, with companies stating that “people are our most important asset”.

This isn’t just a warm-cuddly, team motivating statement; there is a direct connection between human impact and profits, meaning lower risk, higher potential return and greater resilience.  

Providing employees with the necessary infrastructure and then measuring their engagement, retention and diversity is essential.

#3 Natural Resource Conservation Has a Direct

Effect on the Bottom LineThe above points are long term investments and require a more creative, nuanced approach when justifying them on a financial basis. Some measures, like waste diversion and efficiency improvements, show their return right away and therefore are easier to approve.

These are the proverbial low-hanging fruit. Not to say they aren’t important, it’s just that it’s easier to express their value in cost savings as they have a direct effect on the bottom line.

Here at Scaling Retail we are highly experienced and offer invaluable industry insights, and provide our clients with real measurable results. We don’t just believe in following trends for the sake of being trendy, we ensure our clients are making decisions that will have both short term and long term financial returns.

Please contact us at Scaling Retail to learn more about sustainable business building.

And don’t forget to stay connected with us on: Instagram – Twitter – Facebook – LinkedIn!