Lifestyle
Companies worldwide are actively transitioning to green practices, recognising the severity of the climate crisis and its widespread effects, including rising temperatures, fewer resources, and increased air pollution.
Making your company greener doesn't only benefit the planet, it's also a strategic move for your business. Failing to take the necessary steps to make your company greener means overlooking significant opportunities for growth. You might think that the shift towards green practices is simply a trend that will pass or that your company is too small to benefit or make an impact. However, this isn't the case. In a world increasingly focused on achieving sustainability, taking your company on a greener path gives it a competitive edge.
Why is it important to take your company on a greener path?
In today's business world, where resources like energy, raw materials, and water – which is the most scarce resource in Jordan – are in short supply, it's important to use them efficiently to ensure their availability in the long run. Otherwise, you may be exposing your company to environmental risk.
In addition, customer preferences are moving towards cost-saving options and environmentally-friendly products. Businesses that don’t act on these changing attitudes risk losing customers.
Whether you own a small coffee shop or a large car dealership, you’re susceptible to the risks we mentioned above. In the case of a coffee shop, you can start with something as simple as using recyclable or biodegradable coffee cups. You could also reuse coffee grounds as compost to reduce waste. And if you own a large car dealership, it’s important to know that customer preferences are shifting away from gasoline-only cars towards electric vehicles and hybrid cars. To stay competitive in the market, adapting to this shift is essential.
Now, let's dive into the benefits of transitioning into a greener business:
1. Reduces operational costs
What if we told you that you could lower your company's costs and water, electricity, and fuel bills? By relying on energy-efficient equipment and technologies, you can easily reduce energy consumption, spending less on your day-to-day operations.
We all know about replacing old, energy-draining light bulbs with energy-saving LED bulbs. But did you know you could extend this principle to all devices within your company, including printers, heating and cooling systems, and even coffee makers!
While the upfront cost of replacing your old equipment with new, energy-efficient alternatives may be high, the long-term savings make it a wise investment. ِAdditionally, relying on renewable resources such as photovoltaic technology and solar panels usually offsets their costs within a few years, resulting in higher profit margins.
2. Boosts productivity
Transitioning to green practices can make a big difference in your company's efficiency. It pushes you to innovate and incorporate cutting-edge technologies and streamlined processes. This, in turn, not only boosts productivity but also enhances overall operational efficiency, making your company more competitive in the market.
3. Boosts your company's competitive advantage
In recent times, consumers have raised awareness about the consequences of their choices and purchases on the environment. This has led to a growing demand for green products. One example of this is the preference for refillable and recyclable water bottles over single-use plastic alternatives.
When you integrate environmental considerations into your business, you create a positive impression on both current and potential customers. This sends the message that your company is committed to protecting the communities it serves and adopts responsible practices. So, consumers are more likely to trust your company, which aligns with research that indicates many consumers prefer to engage with businesses that share their values. By emphasising environmental commitment, your company gains a competitive edge, and this will help you foster customer loyalty and, in turn, boost sales.
4. Facilitates access to funding
Did you know that banks and financial institutions consider your business's environmental impact before granting you a loan or other financial facilities?
If your company is considering implementing green practices and actively trying to minimise its negative environmental impact, we can support you with financing options.
5. Attracts investors
Your company's stance on environmental sustainability could influence its appeal to investors. Why? Investors are attracted to companies that implement green practices or offer green products or services.
Investors typically look for promising opportunities and companies that can thrive amid resource scarcity and climate change issues. Transitioning your company into a greener entity makes it a more attractive investment for stakeholders. Like consumers, investors prefer to engage with companies that align with their values and contribute positively to the environment and society.
6. Mitigates environmental risks
By using scarce resources efficiently and reducing your company's impact on the environment, you will be able to mitigate risks associated with resource shortages and price increases. This way, you build up your company's resilience, making it easier to address environmental challenges and adapt to change.
7. The sustainability of our planet
The main reason to embrace green practices is to protect our planet. After all, without a sustainable planet, where would your business thrive? By incorporating green practices and technologies into your company, you would support the environment's recovery from past industrial damage, prevent future harm from happening, and preserve natural resources.
How does Bank al Etihad help you in your journey towards becoming a greener company?
Bank al Etihad places environmental sustainability at the heart of its operations, practices, and products. It actively encourages other companies to follow the same path. Through offerings like the Green Future Loan, in collaboration with the European Bank for Reconstruction and Development, the bank provides financing to enable companies to adopt energy-saving technologies in their operations.
When you apply for this loan, you become eligible for a 10-15% cashback of the loan amount, financed by the European Union. To learn more about the Green Future Loan, click here.
If the reasons we've outlined above haven't convinced you to invest in green practices yet, it's time to give the article another read! Keep in mind that one way businesses increase their profit margins is through lowering their operational costs, and that's easily achievable through investments in green technologies and practices.
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