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In today’s climate, some question whether public sustainability commitments are worthwhile. Measuring the business impact of sustainability initiatives can be challenging. ROI is often tied to clear, quantifiable outcomes - so how can sustainability professionals be sure that their investments are actually paying off?
We frequently hear that sustainability efforts drive higher employee satisfaction and retention, strengthen investor confidence, and build a more loyal customer base. In this blogpost, we dive into the data that backs this up and show how businesses that integrate sustainability, especially by using recognized climate certifications, consistently see positive returns.
We’ll also break down the key differences between various certifications, helping you choose the best fit based on your industry, company size, and target audience.
To understand the ROI of climate certifications, we explore the impact of certificates on:
Adopting reputable climate or sustainability certifications can drive tangible business growth. Numerous studies indicate that companies embracing certifications like B Corp, LEED, and climate pledges often match or outperform their peers financially.
Increased Revenue Growth
Operational Savings and Efficiency
Case Study: Unilever’s Sustainable Brands
Unilever reports that its “Sustainable Living” product lines (which have eco/social goals) grow significantly faster than the rest of the business. In 2017, these purpose-driven brands grew 46% faster than others and contributed 70% of sales growth. By 2018, they accounted for 75% of Unilever’s growth.
Recognizable climate and sustainability certifications strongly boost consumer trust and influence purchasing decisions.
Sales Uplift for Certified Products
Purchase Preference & Willingness to Pay
Increased Consumer Trust & Loyalty
Investors are increasingly rewarding companies with strong sustainability credentials.
ESG Index Outperformance
Risk Management and Long-Term Value
It’s clear that companies with credible sustainability certifications gain multiple business benefits, from stronger financial performance to increased consumer loyalty. Our own customers have seen increased customer acquisition as a direct result of their climate certifications.
However, it can be difficult to understand where to start on sustainability initiatives - that’s where quality certifications can help.
Besides giving customers a recognizable label, certifications also provide a clear framework that lowers the barrier to entry for companies and eliminates the need to navigate the process alone. With the right guidance on selecting a certification, your business gains the tools and credibility to implement a recognized program, reducing the risk of missteps.
Below, we have put together a list of climate certifications. To find a certification that aligns with your business, filter by things like industry, type of companies that follow the certification, and level of bandwidth required to implement the requirements.
At CNaught, we work with companies across industries, sizes, and revenue. Based on our experience of certifications that have both effective strategies as well as practical guidance for growing businesses, we recommend:
The Climate Label by the Change Climate Project
Living Future’s Zero Carbon Certification & Canada’s Zero Carbon Building Standards
Science Based Targets Initiative (SBTi) Corporate Net Zero Standard: Science Based Targets initiative (SBTi) is a corporate climate action organization that enables companies and financial institutions worldwide to play their part in combating the climate crisis. The SBTi’s Corporate Net-Zero Standard provides guidance and tools companies need to set science-based net-zero targets.
B Corp Certification: The B Corp certification is issued to for-profit companies that meet high standards of social and environmental performance. Administered by the nonprofit B Lab, B Corp Certification requires rigorous assessment of a company’s impact on workers, customers, community, and the environment.
CarbonNeutral® Certification (via Climate Impact Partners): The CarbonNeutral certification is administered by Climate Impact Partners, and issues certification to businesses who measure their carbon footprint, implement internal reductions, and offset remaining emissions with verified carbon credits.
1% for the Planet: 1% for the Planet is a global philanthropic environmental program where businesses (and individuals) commit to donate 1% of their annual sales revenue to approved environmental nonprofit partners. The certification isn’t about neutrality or emissions but about financial support for environmental impact – once committed, companies can use the 1% for the Planet logo to signal their pledge.
RE100 (100% Renewable Energy): RE100 is a global corporate initiative led by the Climate Group in partnership with CDP, uniting companies to publicly pledge that they will source all their electricity from renewable sources by a specified year (no later than 2050).
CDP (Carbon Disclosure Project): CDP is an international nonprofit that runs the world’s largest environmental disclosure platform for companies, cities, states and regions. CDP invites corporations to report their annual data on climate change, water security, and deforestation to increase transparency and accountability.
Global Reporting Initiative (GRI): GRI provides a comprehensive sustainability reporting framework that is widely used around the world. It helps organizations understand and communicate their impacts on issues such as climate change, human rights, and corruption.
UNFCCC Climate Neutral Now: Climate Neutral Now is an initiative launched by the United Nations Framework Convention on Climate Change (UNFCCC) to encourage voluntary action toward global net-zero emissions. Participants (companies, organizations, and individuals) sign the Climate Neutral Now pledge and commit to measuring their greenhouse gas emissions, reducing them as much as possible, and offsetting the remainder, to effectively achieve climate neutrality.
Climate Active (Carbon Neutral Certification – Australia): Climate Active is a government-backed certifying organization in Australia that certifies businesses and other entities as carbon neutral. It’s based on the Climate Active Carbon Neutral Standard (previously the National Carbon Offset Standard), which requires participants to measure their carbon emissions, reduce them where possible, and offset any remaining emissions to achieve net zero.
ISO 14001: ISO 14001 is an internationally recognized standard for environmental management systems (EMS). It provides a framework for organizations to manage their environmental responsibilities, ensuring legal compliance and reducing environmental impacts.
Leadership in Energy and Environmental Design (LEED): Developed by the U.S. Green Building Council (USGBC), LEED is a globally recognized certification for those with green building initiatives. It evaluates buildings based on criteria such as energy efficiency, water usage, material sourcing, and environmental quality.
ENERGY STAR: ENERGY STAR is a program by the U.S. Environmental Protection Agency that certifies buildings and products for superior energy efficiency. Buildings that perform better than 75% of similar structures nationwide can earn this certification.
FairTrade: FairTrade is a certification that promotes equitable trade practices, ensuring fair wages and conditions for producers in developing countries. It is commonly seen on products like coffee, chocolate, and other goods with internationally sourced ingredients.
Rainforest Alliance Certified™ Seal: The Rainforest Alliance Certified™ Seal indicates that a product or service meets rigorous environmental, social, and economic sustainability standards. It focuses on conserving biodiversity and ensuring sustainable livelihoods.
Programme for the Endorsement of Forest Certification (PEFC): PEFC is an international, non-profit organization that promotes sustainable forest management through independent third-party certification. PEFC works throughout the entire forest supply chain to ensure that timber and non-timber forest products are produced with respect for the highest ecological, social, and ethical standards.
Cradle to Cradle Certified™: Cradle to Cradle is a globally recognized measure of safer, more sustainable products made for the circular economy. The certification assesses products across five categories: material health, product circularity, clean air and climate protection, water and soil stewardship, and social fairness.
Global Organic Textile Standard (GOTS): GOTS is the leading worldwide standard for organic fibers, including ecological and social criteria, backed up by independent certification of the entire textile supply chain. GOTS ensures the organic status of textiles, from harvesting of the raw materials through environmentally and socially responsible manufacturing.
Marine Stewardship Council (MSC) Certification: MSC is an international non-profit organization that sets standards for sustainable fishing. The MSC certification ensures that seafood products are sourced from fisheries that are well-managed and sustainable, helping to protect oceans and safeguard seafood supplies for the future.
We’re here to help. If you’re unsure which certification aligns with your business, reach out to our team, and we’ll guide you through the process.
