The relationship between business and what you might call social and political issues is not always a comfortable one.
There are certainly plenty of people in business with a well-developed sense of social responsibility about what they do. Then again, there are plenty of others who argue the raison d’être of business is making a profit above all other considerations. Some view considerations around the environment, diversity and inclusion, social justice etc as unwarranted intrusions on businesses doing business.
You’d be forgiven for feeling as if voices in this latter camp have been getting louder in recent times. But according to a new report from PTSB, the majority of Irish businesses don’t just see sustainable and environmentally friendly practices as ‘doing the right thing’. They see it as a significant source of business value.
The bank carried out a wide-ranging survey of business owners and leaders canvassing opinions on energy efficiency and renewables, climate technology, the circular economy, organic food production and more. The findings show that an overwhelming majority of businesses (92%) believe their customers are interested in sustainable products and services, while 78% see the sustainability market as a major growth opportunity.
Three quarters say they have actively explored introducing more sustainable goods and services, including talking to suppliers about it. The same proportion say they have helped customers with making more sustainable choices.
More than just a cost burden
This is good news for suppliers in sectors like green energy and environmental services. One of the narratives put forward by critics of sustainability initiatives is that it is too expensive, and simply isn’t a priority for businesses facing more than enough cost pressures from elsewhere.
The PTSB report did indeed find that 36% of respondents view the rising cost of goods as a threat to growth, while 35% are concerned by the state of the global economy. But an even higher proportion (45%) expect their business to grow in the next 12 months, and 80% say they are likely to increase investment.
Combined with the positive view of sustainability as a business enabler rather than a burden, it seems logical to assume that companies will have an eye on making at least some investments in this area.
PTSB has its own commitments to supporting sustainability investments, and released the findings of this latest survey to coincide with the launch of its latest Sustainability Strategy for the period 2025 to 2027. This includes a renewed commitment to helping to fund SMEs that can demonstrate a positive environmental and/or social impact. From that perspective, embracing sustainability doesn’t just make good business sense because it meets with customer expectations. It’s also a route to attracting funding for your growth plans.
