By Harsheenee Aujayeb, General Manager, ESG Intellis Solutions Ltd
The 2025 Global 100 lists the world’s most sustainable companies — those betting on a greener world. Consider this: the firms in the 2025 Global 100 ranking allocated 58% of their investments to sustainable projects in 2023, up from 55% in the prior year.
That figure compares with sustainable investments of just 15% for the 8,259 other publicly traded companies with revenues of over $1 billion in the universe of companies considered by the Global 100.
As another eye-popping statistic, for most of its 20-plus-year history, the Global 100 has outperformed its MSCI ACWI benchmark on total investment return. Thus, sustainability is not just good for the planet, but it also makes business sense.
- Sustainability is Common Sense: A Smarter Way to Do Business
So, when businesses ask – ‘Why sustainability?’ – the answer is simple! Sustainability is a common-sense approach to doing business by using resources wisely, reducing waste, and maximising efficiency.
Above all, a sustainable approach prioritises strategic, long-term thinking about business needs. This, in turn, leads to lasting benefits such as:
- Cost savings through efficiency – Reducing energy consumption, optimising logistics, and minimising waste lead to direct financial benefits. For instance, investing in energy-efficient lighting and machinery cuts electricity costs.
- Competitive advantage – Companies that embrace sustainability can differentiate themselves in the market, appealing to conscious consumers and investors.
- Long-term resilience – Sustainable businesses are better prepared for future resource constraints, regulatory changes, and shifting consumer expectations.
Example: A manufacturing company switches to renewable energy, cutting long-term electricity expenses while reducing its carbon footprint. For instance, global fashion major Burberry joined RE100 – a global initiative bringing together the world’s most influential companies committed to using renewable energy – in 2017. At that time, Burberry made a commitment to procure 100% of its electricity from renewable sources to power its whole business by 2022. Fast forward to 2022 and the Burberry Beyond Climate Positive 2040 report notes that Burberry achieved its goal to become carbon neutral across global operations and use 100% renewable energy by FY2021-22.
2. People Matter: Engaged Employees and a Strong Reputation
Sustainability is not just about the environment – it’s about people. Companies that embrace sustainability show that they prioritise employee well-being and ethical practices.
- Higher employee satisfaction – Companies that focus on sustainability attract and retain top talent. Employees want to work for organisations that align with their values.
- Enhanced brand reputation – A company that treats its employees well and invests in community well-being earns trust and loyalty from customers and partners.
- Increased productivity – Happy, engaged employees contribute to a more innovative and productive workplace.
Example: A tech firm implements flexible work policies and mental health initiatives, leading to higher employee retention and job satisfaction. At Microsoft, the tech giant has gone out of its way to pioneer new standards in remote and hybrid work environments. At the heart of Microsoft’s remote work policy is a strong emphasis on flexibility and employee well-being. The company’s commitment to accommodating diverse work styles and personal needs is reflected in a key employment statement “Offer as much flexibility as possible”. Beyond flexible hours and remote work, the company also offers a range of benefits and support programmes. These include, but are not limited to, world-class healthcare benefits that extend to families, and a student loan refinancing programme.
3. Good Governance Reduces Risks
A sustainable approach also means that an organisation is able to minimise financial, legal, and reputational risks, by proactively managing regulatory compliance, greening supply chains, and meeting stakeholder expectations.
- Regulatory compliance – Governments worldwide are introducing stricter environmental and social regulations. Companies that stay ahead of these changes avoid fines and legal troubles.
- Stronger investor confidence – Investors are increasingly factoring ESG (Environmental, Social, and Governance) criteria into their decision-making.
- Crisis prevention – Ethical governance reduces the likelihood of scandals, fraud, or supply chain disruptions.
Example: A global retailer ensures fair wages and safe working conditions in its supply chain, preventing reputational damage and legal consequences. Here, IKEA stands tall with its Responsible Wage Practices Framework. Extending through the global supply chain, the company’s wage strategy ensures workers receive compensation that aligns with economic realities faced by them on the ground rather than simply complying with more historical statutory requirements. To IKEA, fair wages represent more than a financial transaction — they show its strategic investment in human potential and economic stability, sending out a strong message to all its employees.
4. Sustainability Strategy Elevates Existing Efforts
Most companies are already implementing sustainable practices — whether through recycling programmes, energy efficiency, or community initiatives. A formal sustainability strategy helps businesses take these efforts to the next level.
- Aligning sustainability with business goals – A well-structured sustainability strategy ensures that efforts are intentional, measurable, and aligned with corporate growth.
- Maximising impact – Rather than scattered initiatives, a strategy provides a clear roadmap for sustainability, ensuring efficiency and effectiveness.
- Stronger storytelling – A structured approach allows businesses to communicate their sustainability journey more compellingly to stakeholders.
Example: A logistics company shifts from ad-hoc fuel efficiency programmes to a comprehensive sustainability strategy, reducing emissions while improving operational efficiency. For instance, global logistics major A.P. Moller–Maersk is a leader in sustainable shipping, continually increasing the energy efficiency of its fleet through new technologies and improved operations to lower the emissions intensity its of ocean operations. The company follows a comprehensive ESG strategy with a commitment to reach net zero greenhouse gas emissions across its business by 2040. In 2024, the Danish company became the first shipping company to be recognised by the Science-Based Targets initiative (SBTi) for its decarbonisation goals. Overall, A.P. Moller–Maersk’s first CSRD-aligned Integrated Annual Report for 2024 shows that the company is continuing to make progress on its sustainability goals.
5. Transparency Builds Trust with Stakeholders
In today’s business environment, transparency is critical. Companies that openly share their sustainability efforts foster trust with employees, customers, investors, and partners.
- Consumer preference – People want to support ethical brands. Transparency about sustainability efforts strengthens customer loyalty.
- Investor appeal – ESG-focused investors are more likely to back companies with clear sustainability reporting.
- Stronger partnerships – Businesses that prioritise sustainability are preferred by corporate buyers and suppliers who seek responsible partners.
Example: An iconic consumer electronics brand engages its stakeholders with accessible and easy to understand sustainability reporting, earning consumer trust. For instance, in 2023, Apple pioneered an innovative approach to communicating its sustainability report. The tech giant released a video titled “2030 Status” to update stakeholders on its sustainability strategy, pledging a “zero carbon” footprint by 2030 for all its products. This departure from the traditional model, which often involves lengthy annual reports laden with infographics and dense text, offered a refreshing alternative that is far more accessible and engaging for stakeholders. Apple’s video made viewers sit up and question the conventional approach to sustainability reporting, setting new standard for how companies communicate their environmental performance and blazing a trail for others to follow.
Conclusion: Sustainability is Good Business
Sustainability is not just about doing what’s right for the planet – it’s a smart business move. From cost savings and risk mitigation to employee engagement and brand loyalty, companies that prioritise sustainability position themselves for long-term success.
By embedding sustainability into corporate strategy, businesses not only future-proof their operations but also gain a competitive edge in an increasingly discerning and conscious marketplace.
