BUSINESSES which adopt environmentally sustainable practices perform better across a wide range of industries and economies, a University of South Australia study claims.
Coinciding with the announcement of a proposed state-wide single-use plastics ban, the published research believes doing the right thing by the planet can prove beneficial for businesses in the long-term.
The study analysed 24,393 diverse firms from 41 countries with varying economies and found businesses adopting environmentally sustainable practices faced significantly fewer financial restraints and, in turn, became more profitable.
Lead research author Dr Rajabrata Banerjee said the overall pattern was clear – doing the right thing by the planet is good for business.
“Different industries are more environmentally intensive and different countries have different regulations and markets,” Dr Banerjee said.
“The impact of environmentally sustainable practices varies somewhat from situation to situation, but when we look at the pattern as a whole it is very consistent.
“If a business tries to be more environmentally friendly it will benefit financially.”
The study revealed the greatest benefits of the practices occurred for companies operating in intensively polluting industries or based in economies with strict regulatory standards.
The research claimed the suggested high environmental scrutiny helped firms stand out and find more favourable operating terms.
Results also indicated the more competitive the industry, the more advantage there was in adopting environmentally sustainable practices, particularly for those who go above and beyond mandated minimums.
Doing their part to combat the landfill crisis, Apple Farm owner Kelsie Prowse said the hospitality business adopted environmentally sustainable practices over a year ago.
“The amount of plastic in the environment has always been something I have been aware of,” Ms Prowse said.
“But I do think there is a lot more social awareness around the issue now and we do need to be held responsible.”
Ms Prowse said the business made the switch to biodegradable products following personal research into the issue.
“From being a business and working in hospitality all my life I see the waste cafes and restaurants make,” she said.
“I decided it was time I helped our environment any way I could.”
The business now uses bamboo cutlery, biodegradable cups, paper straws and bamboo boats for catering.
“Bamboo can be used much more as it is a fast growing plant which can be used for many different things,” Ms Prowse said.
With more options available to businesses now, Ms Prowse called on the larger fast food chains to take action and start the movement for a more sustainable future for younger generations.
“There are movements out there that are being started by children and I see children everywhere supporting the motions,” she said.
“I think they need to keep us adults in check and hold us accountable, but I am worried that some adults may not be listening enough.”
Supporting the proposed South Australian ban on single-use plastic items such as straws and cutlery, Ms Prowse said the amount of options available meant there was “no excuse” to be using plastic items.
Legislation surrounding the ban is foreshadowed to be presented to state parliament early next year.
