The Power of Green Purchasing: Why Businesses are Changing for the Better

Sustainability has become a priority for businesses all over the world as millions of companies are implementing green strategies to reduce waste and lower their carbon footprint. According to recent data, more than 80 percent of companies surveyed in 2024 have a Chief Sustainability Officer in place. What’s more, 71 percent of C-suite leaders believe that investing in Environmental, Social, and Governance (ESG) can give their organization an edge over their competitors.  

Implementing eco-friendly processes not only benefits the planet, but it also gives brands an advantage as they adjust to meet the ever-changing preferences of consumers worldwide. Here’s what you need to know about the power of green purchasing, and why businesses are changing for the better. 

To Cater to Younger Customers

Back in the day, customers used to think of sustainability as something that’s nice to have, but it wasn’t a major factor that could make them support a certain product or service. In contrast, Gen Z, or individuals between the ages of 13 and 28, consider sustainability as a key factor that guides their purchasing decisions. According to recent data, 62 percent of Gen Z shoppers prefer to buy from sustainable brands, and 73 percent are willing to spend more on ethically-produced and eco-conscious products. Since forecasting experts predict that Gen Z and Millennials will have the strongest purchasing power by 2030, it only makes sense for businesses to step up their game to make their offerings and processes more eco-friendly and humane.

Brands can start the sustainability revamp by greening procurement processes. This involves working with sustainable suppliers, choosing ethically-sourced and renewable materials, and conducting an assessment of current procurement practices to identify areas which can be improved. It’s also important to train and educate procurement teams on eco-conscious practices and principles, and to make the switch to green packaging and transportation. Doing all these, and being transparent with your business processes, can help your company attract more customers and gain a positive reputation within your industry.

To Position Themselves as Pioneers in the Industry

Any company that refuses to go green is at risk of being left behind by their competitors. But by implementing sustainability initiatives early on, businesses can get a head start and make a name for themselves as pioneers in the industry. Take for instance brands like IKEA, which has incorporated sustainability throughout every aspect of their operations. This popular Swedish company started promoting and practicing responsible forestry in 1993 as a way to improve their methods for sourcing wood. Despite the growing number of its competitors, IKEA remains a leader in the sustainable furniture market all over the world.

Another good example is outdoor clothing company Patagonia, which has a loyal and dedicated customer base across the globe. The brand, which has been around for over 40 years, continues to follow established environmentally conscious practices, yet they also make it a point to evolve with the times. Some of these practices include using organic cotton and recycled materials to make their clothing, and donating one percent of sales to fund conservation projects. All of their products are produced under safe, fair, and humane working conditions, and more than 90 percent of their clothing are made in a Fair Trade Certified factory.

To Stay Compliant

Business owners have to abide by various sustainability and environmental safety regulations to be able to operate legally. Also, they need to follow green regulations from the government on recycling and waste management, energy efficiency, water quality, air quality, and pollution control, among others. Implementing sustainability practices and eco-friendly solutions can help brands to comply with these laws and regulations. 

For instance, switching to a biophilic building design can improve indoor air quality and enhance workers’ wellbeing. Incorporating renewable energy solutions such as solar panels not only reduces energy costs, but it’s also environmentally friendly since carbon emission from solar panels is 95 percent lower than fossil fuels. Meanwhile, installing water-saving toilets or toilets that flush with recycled water is a great way to conserve natural resources and reuse gray water in businesses. 

Companies are undergoing a major sustainability revamp to attract younger customers, stay compliant, and remain relevant in the competitive business world. By implementing green practices, brands can expect to have more sales and loyal customers, and achieve longevity while doing their part to conserve the environment.