Optimism

The Economics of Sustainability

John Bradley "JJ" Jackson

23 Jun 2010 • 1 min read

Sustainability is no longer just a buzzword. It’s a business strategy. A recent survey shows that even without clear short-term ROI, many companies are still investing in green initiatives. Why? Two big reasons: the potential for cost savings down the road and the chance to stand out in a crowded marketplace. Customers still see “green” as cool, and they increasingly look for brands that align with their values.

That said, good intentions only go so far. For most companies, the math eventually has to work. Green efforts need to reduce costs, open new markets, or create customer loyalty strong enough to justify the investment. Otherwise, the subsidies won’t last forever.

The future might not be all hybrids and corn-fiber T-shirts just yet, but one thing is clear: sustainability will stick when it makes economic sense—both for companies and for customers.

John Bradley Jackson