The implementation of an environmental certification programme can often lead to a competitive advantage for a firm. In a crowded marketplace, especially if that marketplace is often associated with practices that are not ethical, a certification to demonstrate commitment to green practices can be the competitive advantage required to get ahead. If there is nothing else to separate competitors, certification of green practices can give a firm an edge, as well as being a key differentiator for many consumers, irrespective of other factors. Certification can also be used to achieve preferred supplier status as it is often a requirement for some authorities or for certain supply chains hop over to this site.
Through the competitive advantage discussed above, companies often demonstrate increased profits with international certifications. Environmental practices can lower costs, but can also drive sales, and as a combination can lead to higher profitability. An example of the benefits for firms of certification is below:
From 1990 to 2000, $100,000 invested in S&P500 would have yielded $423,795. The same $100,000 invested in 212 ISO 9000 certified companies the yield would been $814,335 (Tamini, R. 2003 – Payoff to ISO 9000 Registration).
An important benefit of receiving international certification is the legal compliance derived from implementing the requirements. Certification will provide a framework for identifying, monitoring and complying with various environmental requirements that apply to your processes. These processes make implementation far easier and can increase the probability of your policies becoming successful ingrained in your business culture.
Potential employees have consistently demonstrated an interest in companies that are aligned with their opinions on the environment. As well as a differentiator for consumers, in the competition for top talent certifications that prove a commitment to the environment can make a business stand out. Not only does this improve recruitment possibilities, but employees that feel aligned with their place of work leads to decreased staff turnover and increased productivity.