Green is Good for Business
Category: Business • Jun 25, 2020
Going green never looked—or felt—so good. With the growth of Industry 4.0 comes one very welcome change: the increase of corporate social responsibility (CRS). More than a quarter of manufacturers are now known as “Social Supers,” meaning they are dedicated to improving the environment and the world, according to Deloitte’s 2020 Manufacturing Industry Outlook.
Increasingly, manufacturers are turning to renewable energy sources and other green initiatives to save costs, boost revenues, and foster goodwill. When rethinking your corporate social responsibility (CSR) efforts, Deloitte suggests focusing on these key areas:
- Renewable energy. According to the Deloitte survey, “Sixty-four percent of manufacturers surveyed plan to source a significant percentage of their electricity from renewable sources over the next five years.” Manufacturers are experimenting with alternative energy sources—including solar, wind, hydro, and thermal—to reduce their costs and carbon footprints.
- The Millennial factor. Millennials want to work for and buy from companies that care about the planet and its people. A 2016 Cone Communications study found that 64 percent of millennials won’t take a job if a company doesn’t have strong CSR values.
- Green initiatives lead to more green. CSR is an opportunity. An article in Entrepreneur noted, “organizations have the basic responsibility to do no harm, but they also have the opportunity to make a difference in their communities.” And making a difference often pays off. In fact, Deloitte found that 40 percent of the “Social Supers” reported that green initiatives led to new revenue streams.
- Go Digital. Manufacturers are cultivating strong supply chain ecosystems boosted by the momentum towards digital. They are building partnerships within and across different ecosystems to best meet their goals by leveraging shared knowledge and resources. The companies that are successful are those with digital value propositions for their partners, suppliers, and customers.
- Get started. The first step toward a CSR program is education. Learn more with these resources:
- 4 Steps for Launching Corporate Social Responsibility at Your Business
- 5 Steps To Building A Sustainable CSR Program
- Corporate Social Responsibility: What Your Small Business Needs to Know
- Visit IMTS.com/SupplyChain, which features a range of resources to support smarter sourcing decisions, which can lead to less energy use.