Sustainability has long ceased to be a choice companies can make and has instead become increasingly critical for the well-functioning and success of a business environment. Those who use eco-friendly advertising and terminology but who don’t keep up with the standards are branded for their partaking in greenwashing, and the eco-conscious consumer might avoid them altogether when shopping in the future and instead move toward alternatives that can prove their commitment to the environment. The importance of sustainability cannot be disregarded, given the ongoing climate crisis that has led to hotter weather, warming oceans, loss of biodiversity, and an increased risk of destructive weather phenomena such as hurricanes, flooding and wildfires.
As is the case for most European countries, sustainability within the French corporate landscape is tied to EU rules and regulations. In 2023, the Corporate Sustainability Reporting Directive, CSRD for short, went into full effect and required mandatory sustainability reporting for the 2024 financial year. Independent audits should accompany the reports as well for a comprehensive view of the situation. France has recorded an accelerated rate of sustainability investments. According to a recent study, almost 200 out of 3,000 executives who performed these expenditures were located in France. Between 2022 and 2025, budgets are predicted to grow by an estimated
10.4% every year.
But how exactly does sustainability help corporations develop? It’s essential to remember the times when only growth and profit mattered in the business landscape are waning, but entrepreneurs naturally want their enterprises to remain profitable as well.
Business value
Increasing spending in the areas of sustainable transformation and development allows businesses to remain up to date with the latest regulations, something that naturally helps companies a great deal. There is no risk of having to deal with penalties for failing to maintain a certain standard, and it is also possible that sustainability opens new doors for businesses that may not have been apparent before. Implementing sustainable energy architecture can be a significant upfront expense, as it takes money and time to integrate the new infrastructure, but over time, the costs will be significantly reduced on top of the new system, leading to a considerably reduced corporate carbon footprint.
Digital developments
The tech world is constantly growing and evolving. Its potential to bring developments into the business world is second to none, and French businesses are increasingly aware of this. A recent study revealed that approximately 79% of businesses have started using digital tools in order to make standard operations more energy-efficient and that nearly 70% have implemented methods of recycling waste resulting from back-office operations. A smaller but significant majority (63%) also recycle the waste resulting from manufacturing processes. All of these developments couldn’t be realized without the help of tech solutions such as balers that can compress
carton in order to reduce its volume and make it easier to store and transport.
As for the future, several development plans and strategies are set to take place, including the creation of digital twins that can improve resource management processes and the leveraging of data and analytics that can determine improvement opportunities and establish which ones should take priority within your own business. Moving to more sustainable business premises is also part of the plan for almost half of the corporations.
Customer satisfaction
Ensuring that your customers are satisfied with your performance is no easy task since every individual has different needs and expectations. However, as a general rule, most people want to see products whose development and manufacture didn’t hurt the environment. Most are also willing to pay more to get something that is sustainable, especially since eco-friendly products are associated with higher quality standards. So far, roughly
98% of businesses reported that their sales and marketing received a boost after they chose to integrate more sustainable practices.
Improved reputation is a crucial advantage, but one that can only be achieved if your business shows a definite commitment to becoming greener. Following the regulations only for a short time and then neglecting them altogether will appear as a cynical façade to most customers, and they’ll see your sustainability policies as something more akin to a marketing gimmick rather than an actual push for change. For five years, between 2013 and 2018, the sale of products and services that were directly associated with sustainability grew nearly six times faster than that of the items which didn’t include this description.
Power structures
Power structures and company culture dictate a large portion of a business’ evolution and path toward growth. In France, roughly 60% of CEOs provide the budgets and sign-off sustainability strategies. However, less than 10% of them are directly accountable or choose to have the performance measured directly against the success of the strategy. Instead, the CSOs, the chief sustainability officers, are responsible for these outcomes alongside the senior managers. However, these individuals are often missing from the strategy table.
This creates a disconnect between the areas, which can sometimes mean that sustainability doesn’t yield the results it should or isn’t as efficient as it ought to be during the designated time frame. To ensure that sustainability becomes an embedded concept that is fully part of the overarching company culture, enterprises need to clarify the specifics of the roles and jobs everyone is fulfilling. When everyone is aware of their exact responsibilities, it becomes much easier to complete endeavors on time and guarantee that sustainability standards can be maintained.
The future
France is involved in many initiatives and has developed several pieces of legislation to combat climate change and ensure sustainability within the business environment. In 2020, the country pioneered an
Anti-Waste Law that aims to completely eradicate the presence of waste and pollution during an item’s design stage. Although it sounds simple enough, this is an incredibly complex process involving changes in several areas, including distribution and consumption, and the implementation of a more circular economic model.
France has also legislated a new target, as part of the 2019 Energy and Climate Act, to reach net zero emissions by 2050.
Sustainability isn’t a goal that can be achieved in a single day, and it takes no small amount of time and effort to ensure that the policies are effective. Make sure to look for solutions that are perfectly tailored to the needs of your business by running an audit that can determine which areas you should be investing in first.
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