For years, many executives were wary about corporate sustainability programs for fear that the cost would outweigh the benefits. However, emerging research shows that the opposite is true: sustainability programs result in undeniable business benefits.
In a study conducted by Deloitte, 250 Chief Financial Officers (CFOs) were asked to assess the link between sustainability performance and financial performance. Perhaps surprisingly, 73% said they felt a “strong link” between a company’s sustainability and financial performance.
Sustainability programs boost morale and productivity
In addition to healthy business practices, like energy and resource management, sustainability programs have shown to drive key talent outcomes—which helps explain why an increasing number of CFOs have adopted programs of their own.
Organizations with strong sustainability programs see significantly higher returns on talent outcomes compared to those with weaker ones, ultimately leading to a:
- 55% increase in employee morale
- 35% stronger employee loyalty
- 16% increase in productivity
- 25%+ reduction in turnover
What’s more, there’s an entire generation whose employment decisions are, in part, dictated by sustainability: millennials.
Millennials value corporate sustainability
With 53 million strong, millennials are the largest working population in America. Come 2025 they’ll make up 75% of the workforce. A growing body of research into millennial career aspirations shows that a commitment to sustainability plays a pivotal role in recruitment, retention, and loyalty.
A staggering 83% of millennials would be more loyal to a company if it helped contribute to environmental issues. Fifty-one percent won’t even consider working for a brand that doesn’t have strong social and environmental commitments—while 58% at least consider it a factor.
Arguably more than any other generation, millennials look for purpose and fulfillment in their work. And if there’s one thing that lends on-the-job fulfillment, it’s corporate sustainability: 74% of millennials say their job is more fulfilling when provided opportunities to make a positive impact on the environment.
In sum, to reach millennial talent, companies must speak to their passion for sustainability. An investment in sustainability initiatives can build, strengthen, or differentiate your employment brand, helping you attract and retain leading talent today and into the future.
Carpooling and sustainability
As a company dedicated to sustainable commuting through carpooling, we’re happy to see more research into sustainability’s impact on attrition, employee well-being, and business performance.
With just one small change, employees can give back by doing what they do every day: commute to work, but in a carpool. Taking even one single-occupancy vehicle (SOV) off the road prevents 4.6 tons of CO2 per year. Already, 85% of SOV commuters say they would carpool, but only 10% do so today due to scheduling conflicts, inflexibility, and ongoing management.
With that said, it’s clear that there is an interest in sustainable commuting. The question now is, are executives willing to integrate carpooling into their sustainability program? We do realize, however, that carpooling on its own won’t make for a robust corporate sustainability program. Nevertheless, it can be a natural first step in support of organizational health.