October 5, 2016 — For many businesses, sustainability is a nice idea that looks better on paper than in practice. Yet, research shows that sustainability doesn’t just sound good — it’s smart, and it works. Sustainable Brands has compiled a list of 22 research studies that show sustainable practices lead to long-term benefits. The studies cover multiple benefits, from global reach and stock market value to brand trust and product sustainability. For example:

  • Project ROI, an initiative created in partnership with billion-dollar corporations Verizon and Campbell, the research firm IO Sustainability, and Babson College, drew from hundreds of research studies to quantify the benefits of strong sustainability programs. When done right, the project concluded, sustainable initiatives can increase sale revenue by up to 20 percent, increase market value by nearly 10 percent, lead to lower investment risk and cut employee turnover rates in half.
  • Sustainability can boost profits through the little actions employees take on a routine basis. Research shows that WeSpire Sustainability, an online employee engagement project based on behavioral science, has helped MGM Resorts save about US$5 million annually by engaging nearly a third of its employees (19,500 people) in a social media platform that guides green actions related to waste, water, fuel, emissions and energy. The site offers tips such as taking the stairs, unplugging your cellphone after it’s fully charged and using energy-efficient office equipment. Participants rack up points, compare their progress to other co-workers, exchange ideas and learn about the impacts that these small actions have on the environment. The program suggests that companies can save millions by integrating sustainable practices across departments, committing to meet environmental regulations and targets, and boosting the energy efficiency of everyday workplace functions.
  • As globalization strengthens communication across the world, relationships with local communities are more important than ever for multinational corporations to achieve success, according to business, international relations and public policy scholar Witold Henisz. His book, Corporate Diplomacy: Building Reputations and Relationships with External Stakeholders, describes studies documenting the trials and failures of multinational companies that alienated themselves from local realities and concerns. More importantly, Henisz presents solutions that real companies have found to develop trust, collaboration and respectful communication among communities with differing social, political and cultural perspectives or histories of colonization, for example. Instead of perceiving external stakeholders as “external,” he argues, entities such as government officials, locally employed workers, legislators and NGOs should be an integrated part of decision-making. In the long term, developing a partnership with local populations leads not only to positive, long-term profits for business but also to work that more closely aligns with global sustainability goals.

Like to learn more about links between positive ROI and corporate sustainability? Check out all 22 studies showcased by Sustainable Brands here. View Ensia homepage