Why Incorporate Sustainability (SDGs) in Your Business? 18 Benefits for Sustainable Business Models!
Sustainability is no longer just a buzzword, it has become an essential aspect of any modern business operation. Sustainable development goals (SDGs) provide a framework for businesses to operate sustainably, taking into account the economic, social, and environmental impacts of their actions.
Sustainable Development Goals are a collection of 17 goals and 169 targets set by United Nations General Assembly in its 70th session whereby about 193 members states and civil society resolved to fully commit to implementation of ‘comprehensive, far-reaching and people-centered set of universal and trans-formative Goals and targets’ (United Nations-UN, 2015). SDGs are a part of hundreds of ways or strategies we could accomplish sustainability in all our endeavors. What is sustainability?
They are a universal call to action to end poverty, protect the planet, and ensure that all people enjoy peace and prosperity (UN, 2015).
According to the Office of Prime Minister-OPM (Uganda), SDGs were incorporated in National Development Plan II (2015/2016-2019/2020) to the extent of 69% alignment level being achieved at strategic level of both SDGs and NDP II (now NDP III). Coordination, Monitoring, evaluation, and financing are partially met along the way as for Vision 2040 and NDP II (now NDP III).
However, on 23 October 2018, Uganda released the national SDGs roadmap, which is broadly themed under coordination, M&E and reporting; planning; financing and resource mobilization; data; advocacy and communication (OPM, 2019). On financing, we can assume that funding of NDP II or NDP III almost means funding SDGs and that stands at 6.6 billion Uganda shillings.
However, only 1.2 billion shillings is available slowing us back into a deficit of about 5.4 billion Uganda shillings (The Republic of Uganda, 2018). According to the National SDGs Roadmap, we expect more funding from government, development partners, private sector, and civil society. The Office of Prime Minister also highlights that more funding is possible through the South-South Cooperation. Remember OPM is the overall controller or coordinator of SDGs efforts in Uganda.
Sustainability (SDGs), Individuals, & Businesses
Sustainable development goals are great opportunities for individuals and businesses in this century (SDG Business Forum, 2017). Actually, while the true motivation behind anyone’s pursue of sustainable development goals could stem from moral responsibility or being human, there is also a great business-based reason to invest in SDGs (Gold Standard, 2018). In this brief article, we explore 18 benefits of incorporating sustainability (or SDGs) in your business model.
18 Benefits of Incorporating Sustainability (SDGs) in a Business
1. Cost savings. Sustainability measures often lead to cost savings for businesses. For example, reducing energy and water usage not only helps the environment but also saves on utility bills. Implementing waste reduction and recycling programs can also save money on waste disposal fees. In Uganda, where many businesses operate on tight margins, any opportunity for cost savings is welcome.
2. Increased revenue. Sustainability can also lead to increased revenue. Consumers are becoming more environmentally conscious, and they are willing to pay more for products and services from companies that share their values. By embracing sustainability, businesses can tap into this growing market and increase their revenue.
3. Competitive advantage. Companies that embrace sustainability can gain a competitive advantage over those that do not. They can differentiate themselves from their competitors and appeal to consumers who are increasingly making purchasing decisions based on environmental and social factors.
4. Improved brand reputation. Embracing sustainability can also improve a business’s brand reputation. Companies that are seen as environmentally and socially responsible are viewed more favorably by consumers, investors, and employees. A positive reputation can help businesses attract and retain customers, investors, and employees.
5. Access to funding and investment. Investors are increasingly looking for sustainable companies to invest in. By embracing sustainability, businesses can access a wider range of funding and investment opportunities.
6. Risk mitigation & Long-term viability. Embracing sustainability can help ensure the long-term viability of a business. By taking into account the economic, social, and environmental impacts of their actions, businesses can create a more sustainable business model that is resilient to future challenges and uncertainties.. Sustainability can help businesses mitigate risks. For example, implementing a business continuity plan that takes into account the potential impact of climate change can help businesses prepare for and respond to environmental events such as floods and droughts.
7. Compliance with regulations. Governments around the world are implementing regulations aimed at reducing environmental impact and promoting sustainability. By embracing sustainability, businesses can ensure compliance with these regulations and avoid costly fines and penalties.
8. Increased employee engagement. Employees are more engaged when they work for companies that share their values. Embracing sustainability can help businesses attract and retain talented employees who are committed to making a positive impact on the environment and society.
9. Improved productivity. Sustainability can also lead to improved productivity. For example, implementing energy-efficient lighting and HVAC systems can create a more comfortable and productive work environment for employees. In addition, waste reduction and recycling programs can help reduce clutter and improve organization, leading to a more efficient workplace.
10. Innovation. Embracing sustainability can also lead to innovation. Businesses that are committed to sustainability are more likely to invest in research and development to create products and services that are environmentally and socially responsible. This can lead to new opportunities and revenue streams for businesses.
11. Improved community relations. Sustainability can also improve a business’s relationship with the community in which it operates. By implementing environmentally and socially responsible practices, businesses can demonstrate their commitment to the community and build trust with local residents and organizations.
12. Enhanced stakeholder engagement. Sustainability can also enhance stakeholder engagement. By engaging with stakeholders such as customers, employees, investors, and community members, businesses can gain valuable insights and feedback that can help them improve their sustainability practices.
13. Access to new markets. Embracing sustainability can also help businesses access new markets. For example, businesses that produce environmentally friendly products can tap into environment-conscious markets. Besides, the innovation and increased productivity induced by going sustainable may mean discovering new audience for your business. At #MiklahLife, we have #MiklahShop that targets only climate and environment activists.
14.Contributing to national development goals. Embracing sustainability can also contribute to Uganda’s national development goals. The SDGs provide a roadmap for sustainable development, and by aligning their operations with these goals, businesses can contribute to Uganda’s efforts to eradicate poverty, improve healthcare and education, and promote economic growth in a sustainable way.
15. Reduced environmental impact. Embracing sustainability can help businesses reduce their environmental impact. By implementing energy-efficient practices, reducing waste, and using sustainable materials, businesses can minimize their carbon footprint and help protect the environment.
16. Improved supply chain management. Sustainability can also improve a business’s supply chain management. By working with suppliers that share their sustainability values and implementing sustainable procurement practices, businesses can create a more sustainable supply chain and reduce their environmental impact.
17. Attracting and retaining investors. Investors are increasingly interested in companies that prioritize sustainability. By embracing sustainability, businesses can attract and retain investors who are committed to making a positive impact on the environment and society.
18. Meeting customer expectations. Customers are increasingly demanding sustainable products and services. By embracing sustainability, businesses can meet customer expectations and remain competitive in the marketplace.
Sustainability & Business: What Miklah Life is Doing!
To facilitate individuals and businesses in their journey to sustainability, Miklah Life trains and empowers businesses and individuals with all they need to get started. Additionally, we connect sustainable entrepreneurs to funding. All of these are done in Miklah’s program called Sacred Entrepreneurship.
Sustainability (SDGs) and Business: Summary
In summary, embracing sustainability is a key aspect of modern business operations in Uganda. By considering the economic, social, and environmental impacts of their actions, businesses can create a more sustainable business model that benefits themselves, their stakeholders, and the wider community. From reducing costs and increasing revenue to contributing to national development goals and meeting customer expectations, the benefits of sustainability are numerous and wide-ranging. By embracing sustainability, businesses can create a more sustainable and prosperous future for all.