Capitalize Green

In today’s consumer-driven economy, corporate social responsibility is no longer an option; it's a necessity. Increasingly, investors and consumers want to do business with companies leading on sustainability that extend from supply chains into stores. And environmental benefits aside, these investments help reduce risk exposure and build loyalty with customers and employees alike.

That's why we've worked to develop a toolbox of resources to help retail finance teams understand the opportunities presented by sustainability. Explore the issue and resources below to learn more about how your company can #CapitalizeGreen.

Creating Shareholder Value Through Sustainability - Nike CFO Andy Campion

Sustainability's Financial Impact 

Across industries, sustainability and energy projects are proving their value to the bottom line. Reducing environmental impacts often mean reducing costs and risk by increasing efficiency and brand value. Consider these examples:

  • The World Economic Forum (WEF) and Accenture found that a series of sustainable supply chain practices result in a 9 to 16 percent cost reduction and a revenue increase of 5 to 20 percent.
  • Nike's CFO directly credits sustainability with driving much of the company's innovation work, where they expect to see 50% of the company's revenue growth.
  • As of 2015, Microsoft has saved more than $10 million a year with an internal carbon fee. In this model, Microsoft's business groups pay an incremental fee for activities that increase carbon emissions, incenting employees to reduce their carbon footprint and costs. 
  • Unilever found that its sustainable-living brands have grown 46 percent faster than the rest of the business and delivered 70 percent of its turnover growth. 
  • HP attributes $700 million in new revenue from 2017 to contracts or sales in which sustainability factors were a known consideration -- a 38 percent year-over-year increase in sales bids with sustainability requirements.

Increasingly,companies are expected to leverag sustainability programs to reap greater shareholder value because they reduce costs and help manage risks. Studies show that brands with purpose (brands that offer functional benefits, personal well-being, and collective well-being) perform better on marketing key performance indicators such as impression, brand familiarity, premium pricing, and purchase and repurchase intent than brands that are not purpose-led. 

And according to a 2016 Deloitte global survey of C-Suites and Boards, Sustainability and CSR rank as the top current risk having an impact on corporate strategy.

"The doubters got on board quickly when they saw that our P&L could beneift while we were doing good work for the environment"

Doug McMillon
  • CEO
  • Walmart

Sustainable Investor Impact

Increasingly, companies are expected to leverage sustainability programs to reap greater shareholder value because they reduce costs and help manage risks.

Studies show that brands with purpose (brands that offer functional benefits, personal well-being, and collective well-being) perform better on marketing key performance indicators—such as impression, brand familiarity, premium pricing, and purchase and repurchase intent—than brands that are not purpose-led. 

And according to a 2016 Deloitte global survey of C-Suites and Boards, Sustainability and CSR rank as the top current risk having an impact on corporate strategy.

Resources

Explore project funding options that are unique to sustainability - as well as changes in the retail CFO role that make the sustainability department an increasingly strategic internal partner.

Retail Spotlight

Case studies developed by RILA and DOE highlight the finical benefits of energy and sustainability programs.

Lessons from REI on financing an energy agenda

RILA sat down with retail energy veteran, Mark Lester, divisional vice president of retail operations with REI, to discuss energy management as a recent finance executive.

Read Q&A

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