Why Wellbeing and Sustainability are the key to Business Longevity

Think that “Wellbeing” and “Sustainability” are just nice to have in your business? Well think again! The data is clear - if you want to thrive as a business going forward, you need to actively design and run your business according to these key principles. And I would be delighted to help you achieve these critical goals!

In recent years, there has been a growing body of research and statistics highlighting the positive correlation between well-being, sustainability, and organisational performance. Here are some key statistics and insights that illustrate the benefits for organisations that prioritise these issues:

1. Financial Performance:

   - McKinsey Report: Companies that prioritise sustainability can see an increase in their market valuation. A 2020 McKinsey report found that companies with strong ESG (Environmental, Social, and Governance) performance outperformed their peers in stock price and financial performance.

   - Harvard Business Review: A study published in HBR found that companies with high sustainability scores had lower costs of capital and better operational performance.

2. Employee Engagement and Retention:

   - Gallup: Organisations that foster employee well-being report an increase in engagement levels. Gallup found that highly engaged teams show 21% greater profitability.

   - Aon’s Global Wellbeing Survey: Companies that invest in employee well-being see a reduction in turnover rates by up to 25%, leading to lower recruitment and training costs.

3. Consumer Preferences:

   - Nielsen: A Nielsen survey indicated that 66% of consumers are willing to pay more for sustainable brands, with this figure rising to 73% among millennials. This demonstrates a clear market preference for companies that incorporate sustainability into their business models.

   - Accenture: According to Accenture, 62% of consumers want brands to take a stand on social, cultural, and political issues, indicating that well-being and sustainability are increasingly important to the consumer base.

4. Innovation and Market Opportunities:

   - Deloitte Insights: Companies that integrate sustainability into their core strategy are more likely to innovate and capture new market opportunities. They reported that sustainable businesses are 2.5 times more likely to be innovative than their counterparts.

5. Risk Management:

   - World Economic Forum: Organisations that actively manage sustainability issues are better equipped to mitigate risks associated with climate change, regulatory changes, and reputational damage. The WEF's Global Risks Report indicates that failing to address sustainability can lead to significant financial risks.

6. Brand Reputation:

   - Edelman Trust Barometer: In 2021, 61% of consumers indicated that they would buy from a company they trust, and corporate social responsibility was a key factor. This suggests that a focus on well-being and sustainability can enhance brand reputation and consumer trust.

7. Investor Interest:

   - Morningstar: The demand for ESG-focused investments has surged, with assets in sustainable funds reaching record highs. In 2020 alone, investors poured $51.1 billion into sustainable funds, reflecting a shift in investment strategies towards companies that prioritize sustainability.

8. Health and Well-being:

   - American Psychological Association: Organisations that promote well-being initiatives see a 30% reduction in healthcare costs for employees, which translates into significant savings for the organization.

 It’s very clear! Businesses that prioritise well-being and sustainability not only contribute positively to society and the environment but also enhance their financial performance, improve employee engagement, strengthen brand reputation, and attract consumer and investor interest. These factors contribute to a more resilient and innovative business model capable of thriving in a rapidly changing market landscape.

If you or your organisation want support in future proofing your organisation towards a stronger wellbeing and sustainability offering, I would be delighted to put my 25 years of commercial experience at your disposal. Please get in touch.