Linking environmental results to real business value may be simpler than you think.

There has been a lot of discussion recently about the business value of environmental, social and governance (ESG) reporting and the extent to which it relates to financial performance and other measures of business value. If you focus on the “environmental” aspect of ESG (often referred to as “sustainability”), there are many ways in which this area can open up business opportunities.

For example, if you look at the IBM Sustainability Software portfolio, you’ll see that many of these solutions provide ROI for your business while also having a positive impact on the environment. Take a look at Maximo Application Suite. The core of this product line enables intelligent management of assets such as real estate, escalators, and bridges. In all of these cases, by making assets perform more efficiently, companies can save money while reducing emissions and resources. This has two benefits: cost-effectiveness and sustainability.

This doesn’t just concern large corporations. In the first episode of the Impact-Up podcast, we talked about BAE Boats, a startup that offers short-term rental electric vehicles for special events. The advantage of these boats over traditional combustion engine boats lies in the customer experience. That means no engine noise or gas smell.

Indeed, despite sustainability being at the core of its business, BAE Boats advertises its experience with the environmental aspects of its services and has managed to grow its business even during the difficult pandemic period.

What are the main takeaways from this? Looking at all aspects of your business operations, including customer touchpoints, can deliver greater environmental performance while benefiting your business through cost savings, product and service differentiation, and even new market opportunities. This may sometimes require an initial investment, but it is worth considering this cost compared to other important benefits such as whole-life benefits and improved brand reputation. This is one of the key trends we covered in our recent 7 Sustainability Trends report. “Linking business goals with improved environmental outcomes”.

Learn more about how to align your business with sustainability goals and view the full report.