Business trends are key factors in order for businesses to continue to be successful. Green business trends are important for businesses to pay attention to, and may be an easy way to impress your boss with things he may not realize are helping businesses grow. With markets shifting, and resources depleting, businesses should be changing to help aim for a profitable and greener future. Here are three important green trends that your boss wants to know.
Importance of “Natural Capital” in Financial Decisions
More and more businesses are considering the scarcity of natural resources in their financial statements. This recognition of scarce resources is important for a prosperous socio-economic future. After the Rio+20 United Nations Conference of Sustainable Development, 39 major financial companies, mainly in Europe and South America committed to account natural capital in financial decisions. Even though applying natural capital can be confusing and unusual, there are plenty of easy ways to incorporate natural capital to your business valuations.
Risk Management is Factoring in Sustainable Decisions
With the increase of extreme weather patterns, businesses are factoring in sustainable practices to limit risks in the future. For example, Hurricane Sandy cost New Jersey businesses $8.3Bn and flooding in Calgary cost between $3 and $5 billion. Not to mention the risk of reliance on oil prices. Having oil prices at an incredibly low price right now is having negative and positive effects on the economy. And even if cheap oil is great for your business, prices are still expected to rise in the next 10 years and as the abundance of the resource continues to decline.
Millennials Want Sustainable Business
Forbes named embracing millennials in the top 10 business trends of 2016, and for good reason. The value of goods and services is a lot different than other consumers, with green being a much greater priority for millennials. 20% of Americans deny that climate change is happening but that number drops to only 3% among millennials! Shifting your businesses marketing perspective to advertise sustainability in business can help grow your consumer base. Learn more about what and how you can market your story in our post: How To Tell Your Green Business Story
More millennials are entering the workforce and baby boomers entering retirement will lead to a labour shortage, which is already beginning to have its effect on the economy. The US’s unemployment rate is at 4% and some experts are saying it could fall to 1 or 2% in the upcoming 10 years. One study found that millennials want to work for a company that has a positive difference more then a company with a better salary. Surveys also found that sustainability in business also help employees connect organization’s values with their own and shows the company cares for the employee they hire.
Go green ideas and eco-friendly goods and services are an important aspect and trend that all businesses will need to follow with it. Like computer and technological advances were the future of companies in the early 2000’s, business sustainability will follow as the market evolves with a fight against climate change beginning.
Learn about what not to do when going green as a business in our post: Reduce carbon footprint: 5 mistakes businesses make when going ‘carbon neutral.