Skip to main content
  • login
  • contact
  • language
    • English
    • Français
    • Español
    • Português
    • Deutsch
    • Italia
    • 简体中文
    • 日本語
  • search
X
GEP Logo GEP Logo
  • Company
    • About Us
    • Leadership
    • Customers
    • Partners
    • AI-First at GEP
    • Sustainability at GEP
    • News
    • Events
    • Culture
    • Mission & Vision
    • Awards & Recognition
  • Solutions
    • Software
      • GEP SMART  
        • AI-First Source-to-Pay
        • Procurement Software
        • Product Accessibility
        • Direct Procurement Software
        • Indirect Procurement Software
        • Intelligent Category Management
        • Digital Procurement Transformation
        • Master Data Management
        • AP Automation
        • Spend Management
        • GEP COSTDRIVERS
      • Midsize & High Growth Enterprises  
      • GEP NEXXE  
        • AI-First Supply Chain Management
        • Supply Chain Visibility and Execution
        • Supply Chain Planning
        • Supply Chain Collaboration
        • Supply Chain Control Tower
        • Should-Cost Modeling
        • Inventory and Warehouse Management
        • Direct Material Sourcing
        • GEP Multienterprise Collaboration Network
      • GEP CLICK  
      • GEP MINERVA  
      • GEP BUILD  
      • GEP ASSIST  
      • GEP SPECTRUM XA  
      • GEP GREEN  
      Strategy
      • Procurement Consulting  
        • Procurement Transformation
        • Digital Procurement Transformation
        • Opportunity Assessment
        • M & A Services
        • Strategic Cost Management
        • Supply Risk Management
      • Supply Chain Consulting  
        • Environmental, Social and Governance
        • Socially Responsible Sourcing
        • Supply Chain Strategy
        • Supply Chain Diagnostics
        • Inventory Optimization
        • Network Optimization
        • GEP Total Inventory Management Solution
      Managed Services
      • Procurement Outsourcing  
        • Source-to-Contract
          • Spend Analysis
          • Strategic Sourcing
          • Category Management
          • Supply Market Intelligence
          • Tail-Spend Management
          • Procurement Support Services
        • Procure-to-Pay
          • Cost Recovery & Invoice Auditing
          • Accounts Payable
      • Supply Chain Outsourcing  
        • Planning & Forecasting
        • Inventory Management
        • Logistics Management
        • Supply Chain Data Management
        • Supply Chain Risk Management
  • Industries
    • Automotive
    • Chemicals
    • Consumer Packaged Goods
    • Energy & Utilities
    • Financial Services
    • Government & Nonprofit
    • Industrial Manufacturing
    • Life Sciences
    • Oil & Gas
    • Private Equity
    • Retail
    • Telecommunications, Media & Technology
    • High-Tech
    • Media & Entertainment
    • Software, Social & Platforms
    • Telecom
    • Travel & Hospitality
  • Knowledge Bank
    • Explore by Topic
      • Artificial Intelligence  
      • Digital Transformation  
      • Software & Technology  
      • Strategy & Planning  
      • Operations  
      • Procurement  
      • Sustainability  
      • Inflation Strategies  
      Explore by Type
      • White Papers  
      • Research Reports  
      • Bulletin  
      • Case Studies  
      • Webcasts  
      • Blogs  
      • Podcasts  
      • Insights From the Top  
      • Glossary  
      Global Supply Chain Volatility Index

      Latest Insight

      Navigating shifts Read More  

      Rethinking Supply Chains for Greater Efficiency, Resiliency, and Sustainability Read More  

  • Careers
    • Join Us
    • GEP Per Se
    • Campus Connect
  • Partners
   
  • GEP Software ›
    • GEP Software
    • ‹ Back
      • GEP SMART ›
        • GEP SMART
        • ‹ Back
          • AI-First Source-to-Pay
          • Procurement Software
          • Direct Procurement Software ›
            • Direct Procurement Software
            • ‹ Back
              • Bill of Materials Management
              • Data Analytics & Reporting
              • Inventory Management
              • Master Data Management
              • Quality Management
              • Supplier Collaboration Portal
              • Supply Chain Operations
          • Indirect Procurement Software ›
            • Indirect Procurement Software
            • ‹ Back
              • Source-to-Contract
              • Spend Analysis
              • Savings Project Management
              • Category Management
              • Contract Management
              • Savings Tracking
              • Sourcing
              • Supplier Management
              • Procure-to-Pay
              • Guided Buying
              • Procurement Portal
              • Catalog Management
              • Order Processing
              • Invoice Management
          • Intelligent Category Management
          • Digital Procurement Transformation
          • Spend Management
          • Master Data Management
          • AP Automation
          • Product Accessibility
          • GEP COSTDRIVERS
          • Midsize & High Growth Enterprises
      • GEP NEXXE ›
        • GEP NEXXE
        • ‹ Back
          • AI-First Supply Chain Management
          • Supply Chain Visibility and Execution ›
            • Supply Chain Visibility and Execution
            • ‹ Back
              • Inventory and Warehouse Management
              • Logistics Visibility
              • Control Tower
          • Supply Chain Planning ›
            • Supply Chain Planning
            • ‹ Back
              • Supply Chain Control Tower
              • Should-Cost Modeling
              • Demand Planning
              • Supply Chain Bill of Materials
              • Supply Chain Direct Sourcing
              • Supply Planning
          • Supply Chain Collaboration ›
            • Supply Chain Collaboration
            • ‹ Back
              • Forecast Collaboration
              • Purchase Order Collaboration
              • Quality Collaboration
              • Capacity Collaboration
              • Quality Management Software
          • Supply Chain Control Tower
          • Should-Cost Modeling
          • Inventory and Warehouse Management
          • GEP Multienterprise Collaboration Network
      • GEP CLICK
      • GEP MINERVA
      • GEP BUILD
      • GEP ASSIST
      • GEP SPECTRUM XA
      • GEP GREEN
      • Innovation ›
        • Innovation
        • ‹ Back
          • Emerging Technologies
          • Native to Cloud
          • Native to Mobile
          • One Unified Platform
          • Security
          • User-Centric Design
  • GEP Strategy ›
    • GEP Strategy
    • ‹ Back
      • Procurement Consulting ›
        • Procurement Consulting
        • ‹ Back
          • Procurement Transformation ›
            • Procurement Transformation
            • ‹ Back
              • Procurement Strategy
              • Org. Design & Implementation
              • Capability Building
              • Change Management
              • Governance & Performance
              • Processes & Policies
              • S2P Operations
              • Sourcing & Category Management
              • Technology
          • Digital Procurement Transformation
          • Opportunity Assessment
          • M&A Services ›
            • M&A Services
            • ‹ Back
              • M&A Clean Room
          • Strategic Cost Management ›
            • Strategic Cost Management
            • ‹ Back
              • Zero-Based Budgeting
          • Supply Chain Risk Management
      • Supply Chain Consulting ›
        • Supply Chain Consulting
        • ‹ Back
          • SUSTAINABILITY AND RESILIENCE
          • Environmental, Social and Governance
          • Socially Responsible Sourcing
          • Scope 3
          • PLAN
          • Digital Planning, S&OP, S&OE
          • Collaborative Planning
          • PROCURE
          • Source To Contract
          • Procure To Pay
          • MAKE
          • Inventory Strategy & Management
          • Operations & Manufacturing Excellence
          • GEP Total Inventory Management Solution
          • DELIVER
          • Network Strategy & Optimization
          • Warehousing & Transportation Management
  • GEP Managed Services ›
    • GEP Managed Services
    • ‹ Back
      • Procurement Outsourcing ›
        • Procurement Outsourcing
        • ‹ Back
          • Source-to-Contract
          • Spend Analysis
          • Strategic Sourcing ›
            • Strategic Sourcing
            • ‹ Back
              • MRO
              • CAPEX
              • Logistics
              • Packaging
              • IT & Telecom
              • Energy
              • Direct Materials
          • Category Management ›
            • Category Management
            • ‹ Back
              • Contract Management
              • Supplier Performance Management
              • Savings & Compliance Tracking
          • Supply Market Intelligence
          • Tail-Spend Management
          • Procurement Support Services ›
            • Procurement Support Services
            • ‹ Back
              • eSourcing
              • Supplier Performance Management
              • Savings & Compliance Tracking
              • Sourcing Support
          • Procure-to-Pay
          • Cost Recovery & Invoice Auditing
          • Accounts Payable
      • Supply Chain Outsourcing ›
        • Supply Chain Outsourcing
        • ‹ Back
          • Planning & Forecasting
          • Inventory Management
          • Logistics Management
          • Supply Chain Data Management
          • Supply Risk Management
  • Industries ›
    • Industries
    • ‹ Back
      • Automotive
      • Chemicals
      • Consumer Packaged Goods
      • Energy & Utilities
      • Financial Services
      • Government & Nonprofit
      • Industrial Manufacturing
      • Life Sciences
      • Oil & Gas
      • Private Equity
      • Retail
      • Telecommunications, Media & Technology
      • High-Tech
      • Media & Entertainment
      • Software, Social & Platforms
      • Telecom
      • Travel & Hospitality
  • Knowledge Bank ›
    • Knowledge Bank
    • ‹ Back
      • Explore by Topic ›
        • Explore by Topic
        • ‹ Back
          • Artificial Intelligence
          • Digital Transformation
          • Operations
          • Procurement
          • Software & Technology
          • Strategy & Planning
          • Sustainability
          • Inflation Strategies
      • Explore by Type ›
        • Explore by Type
        • ‹ Back
          • Insights From the Top
          • White Papers
          • Research Reports
          • Bulletins
          • Case Studies
          • Webcasts
          • Blogs
          • Podcasts
          • Glossary
      • Global Supply Chain Volatility Index
  • Company ›
    • Company
    • ‹ Back
      • About Us
      • Leadership
      • Customers
      • Partners
      • AI-First at GEP
      • Sustainability at GEP
      • News
      • Events
      • Culture ›
        • Culture
        • ‹ Back
          • GEP Core Values
          • Women@GEP
          • Diversity
          • GEP Cares
      • Mission & Vision
      • Awards & Recognition
      • Contact Us
  • Global Presence ›
    • Global Presence
    • ‹ Back
      • Americas ›
        • Americas
        • ‹ Back
          • English
          • Español
          • Portugués
      • Europe ›
        • Europe
        • ‹ Back
          • English
          • Deutsch
      • Asia-Pacific ›
        • Asia-Pacific
        • ‹ Back
          • English
          • 中文
      • Middle East ›
        • Middle East
        • ‹ Back
          • English
          • العربية
  • Contact Us
  • Careers ›
    • Careers
    • ‹ Back
      • GEP Per Se
      • Campus Connect
  • Language ›
    • Language
    • ‹ Back
      • English
      • Français
      • Español
      • Deutsch
      • Italia
      • Português
      • 简体中文
      • 日本語
  • BLOGS
  • Strategy
  • Technology
  • MIND
Contact Us
  •  
  •  
  •  
  •  
  •  
  •  
  •  

Breadcrumb

  1. HOME
  2. BLOG
  3. STRATEGY
  4. WHY SUSTAINABILITY AND PROFITABILITY GO HAND IN HAND
Blog Image

Sustainability and Profitability: Why It’s Not an Either/Or Anymore

  • Businesses must realize that they can boost their profit margins by acting on sustainability.
  • Among several other benefits, sustainability can enhance a company’s brand image among consumers.
  • Merging sustainability with profitability requires a change in mindset and strong business commitment.

June 19, 2023 | Supply Chain Strategy

Many businesses are under the impression that implementing sustainability measures can be a costly affair. They believe that investing in sustainability is capital-intensive and can bring down their profit margins.

Not surprisingly, they are reluctant to go all out on sustainability despite the increasing pressure from governments, investors as well as consumers.

Contrary to the above mindset, investing in sustainability can yield high returns.

In fact, there is a compelling business case for investing in sustainability, says Jagadish Turimella, chief operating officer of GEP in this webcast. And there hasn’t been a better time for businesses to take advantage of the tax incentives on sustainability offered by the government, he adds.

The recently approved Inflation Reduction Act, for example, offers a lot of incentives to accelerate the transition to a clean energy economy.

Before diving deep into how sustainability can boost profitability, it is vital to first understand the urgent need to act on a sustainability agenda.

Growing pollution levels, effects of climate change and weather extremes are threatening the survival of the planet. If businesses and the larger society fail to act now, they are at a huge risk of falling prey to some or the other natural calamity in the not-too-distant future.

Clearly, organizations now must build a business model that is sustainable and profitable at the same time. This requires, among other things, broadening the classical definition of profitability to include aspects of social and environmental impact. It also requires a strong commitment to sustainability by business leadership and other stakeholders.

Thankfully, many organizations already have a sustainability project underway. In a recent study involving 581 interviews conducted in 2021, 96.7% of respondents replied they have a sustainability project in their organization.

why-sustainability-and-profitability-go-hand-in-hand

Become Sustainable, Become Profitable

Here are 5 ways a business can benefit by merging sustainability with profitability.

1.Enhance flexibility:

Companies pursuing sustainability can change their business models at short notice to respond to higher natural resource prices, changes in demand and other major discontinuities. Sustainability can also enable businesses to design innovative products that use less resources or meet specific social needs. Redesigning products and services around sustainability can help reduce costs and increase profit margins.

2.Reduce waste:

The three principles of sustainability — reduce, reuse and recycle — can help organizations make the best use of available resources. Efficient resource utilization promotes a culture of corporate responsibility and sustainability and prevents unnecessary wastage. Less wastage can translate into reduced need for disposal and transportation

3.Improve brand loyalty:

Customers are becoming increasingly conscious of the brands they buy. They are looking to identify companies that are taking active steps to implement sustainability. In fact, they are also ready to pay more to buy a product that is sourced sustainably. To drive customer loyalty and stay ahead of competition, companies must act on their sustainability agenda.

4.Be future-ready:

Businesses that act on sustainability now are not likely to be impacted by future regulations. They are set to comply with upcoming regulations and any changes in policies and procedures. On the other hand, businesses that continue to evade sustainability goals are not likely to survive for long.

5.Attract investor attention:

Investors are increasingly considering sustainability to make an investment decision. To make a high-returns decision, they are looking at sustainability-related data, which is now more easily available compared to a few years ago. They scrutinize this data to shortlist best-in-class sustainable companies.

The Bottom Line

Sustainability, resiliency and cost savings are not mutually exclusive. Instead, they are closely linked in a business landscape that offers several incentives for producing sustainable products and services.

Businesses also need a mindset shift to effectively merge sustainability with profitability. They should pursue sustainability not because they have to, but because they can benefit from it in several ways.

Sustainability can offer product differentiation and competitive advantage. It can enhance brand value and set your business apart from others. And it can increase profit margins in the long term.

 

Tags: sustainability

Add Comment +

FEATURED POST

...
Inventory Management Software

Achieving Supply Chain Resilience With Total Inventory Management Solution

...
Supply Chain Strategy

Sodium-ion vs. Lithium-ion Battery: Which is a Better Alternative?

...
Supply Chain Strategy

3 Best Practices to Tackle Inflation in Supply Chain Network Design

    BLOG CATEGORIES

  • Supply Chain Strategy
  • Procurement Strategy
  • Sourcing Strategy
  • Risk Management
  • Miscellaneous
  • Supplier Management Strategy
  • M&A
  • Cost Management
  • Supply Chain Risk Management
  • Inventory Management
  • Digital Supply Chain Transformation

TAGS

sustainability
Procurement Software
supply chain strategy
Inflation
Russia-Ukraine War

By checking the box below, you consent to GEP using your personal information to send you thought leadership content – such as white papers, research reports, case studies – and other communications. GEP representatives may contact you to provide additional information or answer questions.

If at any point in time you decide to withdraw your consent, you may unsubscribe by emailing your request to us at privacy@gep.com.

Please refer to the GEP Privacy Statement to understand how we manage and protect your personal information.

Terms of Use | Privacy Statement

Contact Us

Ask Us

Send us your question(s)

RFP

Request for a business proposal

Feedback

Share your thoughts, comments and suggestions

Demo

Schedule a live demo of our software

Discover
STRATEGY
Strategy
  •   Procurement Consulting
  •   Digital Procurement Transformation
  •   Strategic Cost Management
  •   Opportunity Assessment
  •   Supply Chain Risk Management
  •   Supply Chain Consulting
  •   Supply Chain Strategy
  •   Supply Chain Diagnostics
  •   Inventory Optimization
  •   Procurement Transformation
  •   Sustainability and ESG Consulting
SOFTWARE
Software
  •   Procurement Software
  •   Supply Chain Software
  •   Source-to-Contract
  •   Procure-to-Pay
  •   Supply Chain Planning
  •   Supply Chain Collaboration
  •   Supply Chain Visibility & Execution
  •   Supply Chain Control Tower
  •   Should-Cost Modeling
  •   Inventory & Warehouse Management Software
  •   Source-To-Pay Software
  •   Midsize & High Growth Enterprises
MANAGED SERVICES
Managed Services
  •   Procurement Outsourcing
  •   Strategic Sourcing
  •   Tail-Spend Management
  •   Category Management
  •   Procurement Support Services
  •   Supply Chain Outsourcing
  •   Supply Chain Planning & Forecasting
  •   Inventory Management
  •   Logistics Management
COMPANY
Company
  •   About Us
  •   Leadership
  •   Customers
  •   Sustainability at GEP
  •   Careers
  •   News
  •   Awards
  •   Partners
  •   Contact Us

Fresh Insights, Now on Your Phone

  • GoGEP app on Apple App Store
  • GoGEP app on Google Play Store
Stay Connected
  •  
  •  
  •  
  •  

Latest Tweets

© Copyright GEP 2023. All rights reserved. Terms of Use | Privacy Statement | Cookie Policy |   | Quality Policy | GEP Logo