Fighting Climate change is the next competitive advantage

Going green is the new gateway to unlocking another competitive advantage.

Efforts to do business in an ethical and environmental fashion is the key to developing a suitable and prosperous future. Decarbonization commitments and government regulations keep tightening, resulting in the inevitable outcome that organizations must adapt to not be left redundant. However, for forward thinking business leaders these changes present tremendous opportunities and new horizons for ethical business practices. In essence allowing for the simultaneous creation for business value and environmental positive impact.

Finsys has made note of three predominate current climate topics worth thinking about.

1. The Energy Crisis

The number of organizations taking part in eco-friendly activities is increasing daily. Despite the positive this brings the need for more ambitious changes is needed to stay ahead and to avoid business elements becoming outdated. There is a growing need for companies to raise their environmental efforts as a form of risk management as well as to set themselves up to be leaders in the future.

As a practice in risk management companies should start looking at environmentally friendly solutions to power their activities. The global distribution of fossil fuel resources is primarily concentrated in the hands of a couple key conglomerations, leaving organizations at the mercy of geopolitical events that influence their key suppliers. The Russian war with Ukraine is a key example demonstrating the European venerability relative to fossil fuel prices and the dependency on them, resulting in higher prices and energy shortages in parts of Europe. Companies able to pivot into having more access if not total dependency on green energy would be able to circumvent issues outside of their direct geopolitical zones of operation. Providing them with the ability to reduce risks with more local control, limit global political influence and experience more price stability.

Additionally, with the EU wanting to step away from Russian fuel dependency it is the perfect time for forward thinking organizations to seek government assistance in investing in green alternatives. Companies today can experience more benefits for being early to invest in green solutions, these incentives could disappear in the future leaving late adopters more vulnerable to the prices set by faster to act companies knowing changes are mandatory.

2. Creating Future Advantages

Despite the vast commitments form organizations to decarbonize and reduce emissions, results are still falling short of the shared goal of 1.5 Celsius as set by Paris. As goals for decarbonization are not currently being met, in the future it can be expected that more regulations will be implemented to address the climate issues facing the planet. Leaving the expectation that more drastic and harsher carbon requirements will be set in place. Naturally, these environmental regulation changes can be a shock, disrupt business and open firms up to falling behind their competition. However, this present two key incentives to act fast; 1. First mover advantage, and 2. Reducing future risks.

First mover advantage

Firms that are fast to act will benefit from setting themselves up for stability in the future.

Reducing future Risk by adopting green ways of working.

When climate regulations become harsher, organizations that are slow to adjust will be pushed to make drastic changes, and that makes them venerable to greater risk.

3. The potential of green marketing

More consumers are caring about the environment each year. With future projections for green markets seeing them doubling within the next 5 years (Statista, 2022).

In fact, this is more than just an industry trend consumer are willing to pay a higher premium for good and services that are environmentally positive (YouGov, 2021). Meaning that “green” holds value on its own.

But how can firms that act fast capitalize more on being environmentally friendly?

Green marketing is the practice of promoting environmentally friendly business activities in an aim to capture more value from set activities through: positive consumer impressions, capturing new consumers that have an environmental focus, ensuring you look better for sharing how you do environmental good, and your competitors look unsympathetic for not saying how they act environmentally.

The goal of marketing sustainable and climate positive activities is to be able to help the world whilst doing business. Finsys stands by the idea that adopting a green marketing strategy will showcase your actions with consumers to help them make an informed decision about the environment.

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Current trends are showcasing that going green is not just a way to save the planet but also a path to enable a better business future. Finsys helps propel future change today within vibrant organizations through aiding in shifts in strategy, use of AI, use of technology, adopting green manufacturing and developing green marketing strategies.