10 More Reasons Companies Should Care

About Sustainability
DINA SPECTOR
MAR. 1, 2012, 4:12 PM

In today's increasingly competitive landscape, more and

more companies are realizing that being sustainable is more
than an environmental gesture—it makes long-term
economic sense.

Here are the top 10 reasons companies should care about

sustainability:

1. Cost Savings. "Sustainability is first about improving the

bottom line," says Emily Reyna, a project manager for the
Environmental Defense Fund’s Corporate Partnerships
Program.

Reyna works with EDF Climate Corps, a program that places

MBA and MPA students in companies, including
McDonald's, Verizon and Target, to "build the business case
for energy efficiency" by identifying ways to slash electricity
and gas use.

Since 2008, fellows have uncovered energy efficiency opportunities — from changing light bulbs to replacing old
computers — that would save $1 billion in net operational costs over project lifetimes.

2. Consumer demand. Being green not only saves money, it also creates new revenue by attracting customers
who care about a company's environmental footprint.

3. Risk mitigation. "With energy costs rising and uncertainty in supply, it is important that companies start re-
thinking how they obtain and use inputs," says Reyna.

4. Leadership. Traditionally, companies adopted sustainability strategies in order to comply with government
regulations and avoid fines. Now leading-edge corporations are embracing the concept of sustainability in order
to be a part of the conversation on environmental policy, says Eliot Metzger, a senior associate at the World
Resources Institute.

5. Tax incentives. According to Area Development, federal, state, and local governments offer a range of
financial incentives for undertaking environmentally-responsible activities. These include investment-,
production-, or consumption-based income tax credit, accelerated depreciation for certain capital expenses,
exemptions from state or local sales taxes, and cash grants.
6. Employee retention. "Working for a bigger cause excites employees," says Metzger. "It's one of the softer
measures to wrap your head around, but if you talk to someone where sustainability is embedded into the
corporate culture, it's a selling-point to attract and retain workers."

7. Brand reputation and publicity. Fostering positive consumer relations through sustainable initiatives
generates brand value and improves a company's image.

8. Resource limitations. Natural resources like fossil fuels and water are finite. As scarcity increases, cost also
increases. "At some point the resources with which we depend upon will be more expensive or we won’t be able to
get it, says Reyna. "So companies need to be prepared to protect those resources so they will be plentiful or find
alternate resources for their products and services. The winning companies will do both."

9. Keeping up with the competition. A 2011 survey of nearly 3,000 global executives by MIT Sloan
Management Review found that about two-thirds of respondents believed sustainability was necessary to being
competitive in today’s market.

10. New revenue opportunities. "Companies like DuPont, Nike and IBM are looking ahead to see how
natural resources, climate change, and energy can drive innovation and inspire new business models, products
and services,” said Metzger. “These are the factors that are going to determine future winners and losers in the
marketplace.”