B2B Sustainability: Businesses must consider the long-term impacts of their actions on the environment and society in order to drive positive change. In recent years, there has been a growing emphasis on sustainability in the business world, with companies around the globe urged to make significant changes in this area.
Many businesses are already working on developing and implementing sustainability strategies, while others are at least considering such efforts. Understanding the current state of the ESG (Environmental, Social & Governance) landscape can help you as you progress in your sustainability efforts.
High demand for clear and transparent communication about B2B sustainability
There is a high demand for clear and transparent communication about sustainability, but many do not see this as an easy task. Most customers and partners (61%) want more transparency about the climate impact of products and services, but only a small number (7%) of marketers feel at ease communicating about climate change.
Anxiety about the environment is at an all-time high
Eco-anxiety is higher than ever, but many business leaders are not focusing on the areas where they can have the greatest impact. Despite the fact that a large proportion (79%) of executives recognize that the world is at a tipping point in terms of responding to climate change, only a small percentage (19%) are taking significant steps to make a positive difference.
Businesses have a crucial role to play in the transition to a more sustainable future.
A small number of companies (just 100 globally) are responsible for a significant portion (71%) of the greenhouse gas emissions that have contributed to global warming since 1998.
When it comes to communicating about B2B sustainability, it is imperative to focus on the journey rather than just the destination
Many marketers (90%) believe that it is acceptable to acknowledge that a company has not yet fully addressed all of its sustainability challenges. Instead of trying to present a pristine image, it is imperative to be honest about where a company is on its sustainability journey. This is to show a commitment to continuous improvement.
There is a strong desire among many individuals to work for companies that are doing good in the world
A survey conducted in the United States found that 40% of millennials have chosen a job because of a company’s sustainability practices. And Gen Z is also more likely to stay with a company longer if it has robust ESG commitments.
Regulatory measures aimed at promoting B2B sustainability are on the rise
For example, in January 2022, the CMA (Competition and Markets Authority) introduced the Green Claims Code, which requires that any sustainability claims made in advertisements relating to the sale or promotion of goods and services be specific and backed up by evidence.
ESG (environmental, social, and governance) credentials are no longer optional
Institutional investors, buyers, and decision makers expect companies to prioritize sustainability, and many actively seek out such information. In fact, a large majority (90%) of institutional investors say they now consider a company’s ESG performance when making investment decisions, and nearly three-quarters (74%) are more likely to reconsider their investments if a company does not meet their standards in this area.
While some business executives may think that prioritizing sustainability involves sacrificing growth
Research suggests that this is not the case. In fact, companies with strong ESG ratings tend to outperform the market average in both medium-term and long-term earnings. A majority (58%) of business executives believe that operating sustainably involves a trade-off with growth, but the data suggests that this is not necessarily true.
B2B Sustainability is an influential factor in B2B (business-to-business) decision making
While buyers are naturally concerned with their company’s profitability and financial performance, they also place a high value on making responsible choices. According to a survey, 57% of B2B buyers said that sustainability influences their purchasing decisions “somewhat” or “decisively.”
B2B Sustainability- a disconnect between their words and their actions
Despite the fact that many businesses recognize the importance of sustainability, there is still a disconnect between their words and their actions. While a large number (72%) of executives claim that becoming a more sustainable and responsible business is a top priority for their organization over the next three years, a significant percentage (66%) also admit that they are not yet ready to share their actions in this area.
It is essential for businesses to take a long-term approach to sustainability
Because the effects of their actions can have far-reaching consequences B2B companies have a responsibility to consider not only the immediate effects of their decisions, but also the effects on future generations and the environment.
This is particularly true for B2B companies as their products and services are frequently utilized by other businesses, resulting in a more significant and widespread impact. By adopting a long-term perspective B2B companies can help to create a more sustainable and just future, while strengthening their own business model to better withstand the challenges of a rapidly changing world.
Ready to ramp up your sustainability efforts? Hiring a B2B sustainability marketing agency can help you effectively communicate your commitments and make a real difference for the environment and society. Contact us now to find out how we can help your business thrive sustainably.
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