While businesses and consumers alike have traditionally held the view that sustainable or “green” business improvements and products carry a price or performance premium, this paradigm is slowly shifting. According to the International Chamber of Commerce “economic vitality, employment creation and environmental protection are strongly interrelated”.

The Business Charter For Sustainable Development, established in 1991, further emphasized this notion, outlining sixteen principles by which a business can actualize the three E’s of sustainability: Economics, Social Equity, and Environment.

There are many businesses that have realized the economic benefits of sustainable improvements and are integrating them into all facets of their company. 75% of the Fortune 500 companies have an environmental business policy, and this number is rising every year.           

Consumers are recognizing the benefits of making their purchases in a sustainable manner. This is
evidenced by the rapid growth of markets for products such as organic food and free trade goods. These
goods that carry a price premium are still only a small niche market, but recent consumer surveys such as
an August 2003 poll performed by American Demographics Magazine are finding that a large percentage of
consumers (70% in this case) are more likely to choose products produced by companies with
environmentally friendly practices.

While the business case for sustainable improvements has not been documented by a large number of
organizations or individuals, it is growing ever stronger as committed companies are finding new ways to
save money and lessen their environmental and social impacts. There are many different areas where it
has been documented that businesses can make sustainable improvements and save money, these areas
include:

1.                Reducing wastes and associated costs
2.                New revenue streams
3.                Reduced operating costs due to improved resource utilization rates
4.                Reduced energy costs
5.                Enhanced worker productivity and morale
6.                Greater asset retention
7.                Improved risk management
8.                Reduced insurance cost
9.                Reduced product development cycles and time to market
10.               Increased community support
11.               Improved supplier and purchaser relationships
12.               Increased competitiveness for new supply contracts
13.               Increased market share

Download the entire report: The Business Case for Sustainable Improvements (MS Word)