Beyond Profit – How to Make Sustainability Your Business Relationship Priority

The business world is going through its biggest transformation ever, with more and more companies realizing the importance of sustainable practices. According to Travel Perk, about 55% of businesses worldwide have already started using energy-efficient and climate-friendly machinery just in 2023. But sustainability isn’t just about the way we run our operations—it’s also about how we build and maintain our business relationships. Making sustainability a priority should be at the top of the list for every company, no matter how big or small.

Understanding the Critical Role of Sustainability in Business Relationships

While many businesses believe that sustainability is an ethical must-do, plenty of companies are still missing out by not weaving it into their relationships with suppliers, partners, and investors. Plana Earth highlights how crucial sustainability is, especially in B2B interactions. To truly embrace sustainability across the supply chain, companies need to look into Scope 3 emissions, which make up about 70% of a typical corporate value chain’s total emissions. And sustainability isn’t just about cutting emissions to avoid future costs from regulations and taxes. It’s a bigger picture that includes reducing waste and building a brand that minimizes environmental impact. Now that you see how vital sustainability is for business relationships, it’s time to focus on key priorities to shape your venture’s sustainability strategy. Every business owner should make this a top priority.

Key Priorities for Your Business’s Sustainability Strategy

As the corporate world progresses towards net zero emissions and building businesses on sustainable grounds, it’s crucial to understand why a business needs an effective sustainability strategy that focuses on long-term growth. As businesses continue to use sustainability as a strategy to market their products and services, the Deloitte Sustainable Consumer Survey reports that one in six consumers believe that measurable carbon footprint data is a core part of adopting a sustainable approach for any business. Lenovo StoryHub discusses the key priorities for adopting a sustainable strategy for any business and how it aligns with not only long-term growth — but also for securing cost efficiency and optimization. The incorporation of energy-efficient equipment and technology should be the primary motive for any business if it wants to portray itself as a sustainable company and change its position in the minds of consumers. Apart from this, a sustainable strategy doesn’t only account for consumers; employees are also a part of a sustainable business, so attracting talent based on these grounds can be a great approach for any business. While businesses embrace a sustainable approach, it’s also essential to understand the importance of sustainability clauses in business relationships to bring all stakeholders on one page. 

The Green Handshake: Dissecting the Importance of Sustainability Clauses in Business Relationships

According to a 2024 study by IBM’s Institute of Business Value, an impressive 75% of people believe that sustainability leads to better business results. This highlights the importance of integrating sustainability into business relationships as a way to gain a competitive edge and enhance market position. Lexagle.com explores how sustainability clauses in contracts impact business relationships. While Corporate Social Responsibility (CSR) has been included in business agreements since the 20th century, today’s sustainability clauses need to go beyond just CSR for effective implementation. The triple bottom line approach addresses this by including profitability, people, and the planet, promoting comprehensive sustainable practices throughout the value chain. Trust is vital in corporate settings, and formalized contract terms build that trust. This commitment covers everyone involved, whether in business partnerships, supplier contracts, or investor agreements.

As the world becomes more cautious about sustainable practices, making sustainability a priority in your business relationships is something that every venture should focus on to stay in the limelight. With this, having sustainability clauses in contracts and agreements is what every business should target to ensure long-term success.