There is a growing threat to business worldwide, and that’s climate risk. This is one of the key reasons that Doug Healy encourages companies to shift to sustainable energy. Investors with high stakes and high revenue such as Black Rock will shy away from investing in a business that has a high carbon footprint.
Shareholder value is at stake for any company that doesn’t take part in sustainable energy. The time is now to craft the plan for the upcoming changes. It takes time. Companies should learn how they can upgrade and what it will take. The future is muddy. We cannot see how investors will judge a company before taking partnership with them. We know sustainability is the direction that they are looking the most.
It is better that businesses jump on the bandwagon now to avoid higher capital costs. It shows investors that the company they are waiting on a capital return from is innovative. No innovation? Then they know that company cannot be in the running as a competitive force.
Challenges
Doug Healy understands that it’s challenging for established companies to switch gears to a sustainable business, but it’s doable. Newer businesses pose a threat to them because they can integrate a sustainable strategy into its plan right out of the gate. This shows investors a level of seriousness that an existing company may not have, and they must prove that it is instituting the plan without shortcuts.
When you look at it on an almost philosophical level, you will understand that sustainability does not cost you. In fact, it will pay off when done right. Let us look at another element of encouragement.
The Workplace
Millennials and Gen Z are two of the largest populations in the US. They will be the highest number of entrepreneurs before long. They are also the groups taking businesses to task on the subject of sustainability. So, how many companies that are not paying attention to the environment will be able to hire a workforce in that generation?
So, you see that this issue is more than just a voluntary affair. It will be a must-participate affair.
Here is a very telling global study using 3.700 business students from Yale University.
78% would apply to positions with a company that was sustainable. For 80%, this would be a deciding factor in accepting positions with said company and 44% would accept lower pay to work for a company that was footprint serious.
We need to look at this as a legacy and not a catastrophe. They will reshape capitalism and the economy. We can look at where a company is at on this subject. It says a lot about its worth. Doug believes this is substance to leave behind for future generations.
As a nation, we have cultivated a habit of waiting for the government to transition us into a change. Businesses will have to take charge and show movement forward. In fact, since businesses are the main issue that began climate declination, they are also the only things that have the power to cure the illness.
Modern Technology
There are many examples of how modern technology can reduce waste and increase sustainability. 3D printers can and will replace machining to a great extent, reducing waste and cutting away by adding elements instead. This is an invention that will cause drastic change.
One particularly important point, maybe the most important here, is that companies must never treat sustainability as an extra. No. Just feeding the subject of sustainability talk and no action is not good enough if they do not integrate a green footprint into everything they do from back end to front end.
Starting The Shift Now
Gone must be the days that big corporations get to do the least to get the most out of both people and the environment. The best companies can do is to be aware of the best models doing it now. There are scores of companies that are changing in the slightest direction. We have to understand that shifting gears takes time.
You cannot stop a freight train and make it go into reverse on a dime. Some companies are taking steps now that will not take off full force until 2030 or 2050. But it does not mean that those steps will not make a significant impact in the meantime. Every effort helps. We saw during the COVID 19 lock down just how the environment reacted to people and their emissions. It was a positive change in a brief period.The planet is a living organism that knows how to change and compensate for our existence. In recent times, we have seen it and should humble us by the experience. A legacy of healing through corporate environmental consciousness is what we can look forward to with bright expectation and pride.
Written by Callum Jackson
