Business Case for Going Green Green
#1 Businesses with a purpose, beyond profit, tend to outperform the competition
Over the past five years, the annual returns of publicly traded green giant companies have averaged 11.7% higher than their leading competitors. (Source: "Green Giants" by Jason Denner)
There are now at least nine companies globally that generate a billion dollars or more in annual revenue from products or services that have sustainability or social good at their core. These so-called green giants – which include Tesla, Chipotle, Ikea, Unilever, Nike, Toyota, Brazilian beauty company Natura, Whole Foods and GE’s Ecomagination – manufacture a stunning array of products, including burritos and beauty cream, sports shoes and sports cars. In the process, they have succeeded in doing what many thought impossible: they’ve made sustainability profitable. (Source: www.theguardian.com)
#2 Green business are growing faster
- "Growth rates of “green” segments are outpacing conventional segments in every industry where we collected data."
From 2002-2011, the organic food segment grew 238% while the overall food market grew 33%.
- From 2003-2011 the organic non-food segment grew 400% while the equivalent overall non-food market grew 33%.
(Source: 2013 Report, "Big Green Opportunity”)
#3 Sustainability IS a Priority to Consumers
- 53% of people are willing to pay more for a product with environmentally friendly packaging
- 58% of people are willing to pay more if the product is from a company known for being environmentally friendly
- 66% of global respondents say they’re willing to pay more for products and services that come from companies that are committed to positive social and environmental impact (up from 55% in 2014, and 50% in 2013)
Plus, 51% percent of Baby Boomers (50-64) are willing to pay extra (an increase of seven percentage points since last year)
(Source: 2015 Neilson Global Online Study)
- Roughly 90% of millennials surveyed said they consider a company's sustainability important, as compared to 84% of those surveyed in Generation X and 77% of baby boomers.
("Recycling in the Workplace: A Millennial View", Rubbermaid Commercial Products commissioned study)
- Walmart is now "the biggest seller of organic milk in the world and the biggest buyer of organic cotton globally."