Going green at work

^{Dr. Lindsey Butler is an environmental epidemiologist and director of climate and health resilience at Blue Cross Blue Shield of Massachusetts. She shares her perspective on climate change and the workplace in a new column for Coverage.}

We often hear about the crisis of climate change, as news of deadly heatwaves and images of apocalyptic flooding flash across our screens.

We hear far less of the opportunities to change the way we live, creating healthier environments, healthier people, healthier workplaces, and healthier economies.

Yet, significant benefits await companies that embrace their responsibilities as environmental stewards.

Nurture healthy, engaged employees

Companies can foster fitness and boost morale when they take sustainable steps like encouraging gardening and support for local farms, biking to work, and volunteer opportunities for community cleanups. For example, at Blue Cross, we partner with The Trustees on a garden program that provides associates with opportunities to learn valuable gardening skills they can use in our company gardens or at home.

We also offer a community supported agriculture program, a cost-effective way to purchase organic produce directly from a local farm – reducing emissions and improving nutrition. Popular year-round company volunteer opportunities include service projects like participating in a clean-up of the Neponset Watershed on Earth Day, April 22. And all our employees get a free membership to the Bluebikes bike-share program, a fun and healthy way to commute.

Boost recruitment and retention

Much has been said about the threat of the “Great Resignation” to employer organizations. Shifting workforce demographics and priorities suggest that environmental stewardship might help improve acquisition, engagement, and retention of employees. One survey found that 83% of Millennials would be more loyal to a company that helps them contribute to social and environmental issues, and a separate study by WeSpire found Gen-Z is “the first generation to prioritize purpose over salary.” According to Deloitte’s 2021 Global Millennial survey, Gen Z’s top concern is climate change and protecting the environment -- outranking issues such as health care, the economy, and terrorism. Companies that are responsive to such concerns will be more attractive to these young employees.

Attract consumers

Environmental stewardship doesn’t just attract employees, it also attracts consumers. The Harvard Business Review reported that the purchase rate of products marketed as sustainable grows 5X faster than those that are not, and Unilever has indicated that their “brands with purpose” grow at double the rate of the rest of their portfolio. In its first ten years, from 2005 to 2015, General Electric’s Ecoimagination division of sustainable products generated $200 billion dollars in revenue.

Build loyalty

Marketing experts have long understood that it is easier to retain existing consumers than attract new consumers, thus opportunities to build brand loyalty are critical. A recent survey conducted on US consumer brands found that following “better quality,” the next greatest contributor to consumer brand loyalty was sustainability and ethical busines practices. In this same survey, 35% of consumers said they would pay up to 25% more than the original cost of a product for a more sustainable option – and Gen-Z willing to pay 50-100% more.

Reduce risk, enhance performance

Organizations prioritizing ESG (environmental, social, governance) in their operations reduce their overall risks and enjoy better financial performance overall, according to some researchers. A review of the academic literature conducted by the University of Oxford found that good ESG standards lower the cost of capital, are correlated with better operational performance, and boost stock price.

The takeaway

Every employer will grapple with the health effects of climate change in coming years, ranging from natural disasters like flood or heat waves, to air pollution, electrical grid failures and supply chain disruption. While individual actions to reduce environmental impact are important, organizational and companywide changes will make the most impact. Companies that seize the opportunity to embrace sustainable practices and values can help mitigate and address these crises, while supporting their employees and customers.

^{GREEN@BLUE TEAM PHOTOS BY MICHAEL GRIMMETT}