A2X Consulting

Consumer expectations for environmentally conscious business practices are increasing tremendously, regardless of industry. A company that ignores environmental or social issues may limit its value through loss of opportunities.

Market competition today has changed. Providing a great product or service is no longer enough to sustain business success. From customers to government agencies, all are demanding companies to take on corporate responsibility. Suppliers, investors, consumers alike are demanding companies to examine their business practices and take responsibility for its impact on the environment and society. A survey of social trends conducted by the research firm GlobeScan in 2007 found that consumers, 55% surveyed in North America, punish companies whose business practices harm the environment. These discriminating consumers have created a $306 billion ‘green’ market.

Financial markets are also showing interest in the role of sustainability practices of businesses. Dow Jones has created Dow Jones Sustainability Indexes to track the financial performance of sustainability driven companies. Al Gore and David Blood made a point in McKinsey Quarterly May 2007 that investing in sustainability delivers above-average returns.

Sustainability issues and climate change are increasingly influencing purchase decisions of consumers and customers. A company that ignores environmental or social issues may limit its value through loss of opportunities.