Can Sustainable Be Profitable? - 3 Ways Sustainable Practices Can Help Businesses Grow

While it might seem counterintuitive for businesses to adopt sustainability as a means of increasing profit, research has indicated that doing so could benefit a company’s bottom line. A meta-study conducted by Oxford University and Arabesque Asset Management found a positive correlation between sustainable business practices and economic performance, leading to improved cashflows.

Here are 3 ways that sustainability could benefit businesses:

1. Cost savings

The key drivers of cost savings are optimisation of operations and increases in productivity. Businesses can achieve these outcomes by exploring resource optimisation strategies and implementing methods to maximise productivity through transformation. By saving costs, companies free up capital, which can then be channelled towards revenue generation. In addition, businesses in Singapore can look to government-funded incentives to help them defray the costs of their journey towards sustainability.

2. Branding

As awareness of climate change grows, governments, investors and stakeholders are turning their attention to businesses that make positive strides in environmental, social and corporate governance.

In increasingly competitive markets, sustainability presents an avenue for businesses to differentiate themselves from competitors and appeal to a growing number of eco-conscious consumers. Employers who value sustainability may also use this as a factor to attract and retain talent.

3. Risk mitigation

Covid-19 has exposed the vulnerability of businesses to disruptions in supply chains. The effect of climate change on agricultural output as well as the increasing scarcity of natural resources have the potential to drive costs up significantly. Businesses that invest in sustainability now will find themselves in a better position to manage such risks in future.

Rather than continuing to think of sustainability as a good-to-have, business leaders should start to consider it an essential component of their business operations.

To find out more about incorporating sustainability into your business strategy, reach out to us at

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