If you're a business looking to scale it can feel like there's a tension between growth and sustainability. But do we really need to make a choice between pushing forward and doing the right thing?

The good news is that sustainability and growth can – and should – go hand in hand.

Forbes defines sustainable growth as “growth that is repeatable, ethical, and responsible to, and for, current and future communities. And it’s key to the long-term success of any business”.

It's why it's not just early adopters like Tony's and Allbirds focusing on environmental, social, and governance (ESG) strategy, but big industry heavyweights too.

Here are 5 reasons why sustainability and growth go hand in hand:

Continuous improvement

Building a sustainable business isn’t easy, it takes work, a strategic approach, and reacting to change. It’s an ongoing process and involves assessing ways of working, improving processes, finding areas for change, and measuring outcomes. The obvious benefit of this is you’ll identify new ideas and solutions that can make you more energy efficient, reduce waste, and become more sustainable, but it also puts innovation and efficiency front of mind for your entire team. When you have a culture of continuous improvement it permeates all parts of the business, and it becomes instinct to identify opportunities for positive change that will drive growth over time.

Increased productivity

Being sustainable also contributes to a more motivated and productive team. Researchers from UCLA found that businesses who adopt sustainable practices have employees who are 16% more productive than the average and Deloitte research showed that companies with an inclusive culture have a 27% higher profitability and a 22% greater productivity.

Investment

According to Gartner 85% of investors take ESG into account when considering an investment and Morgan Stanley found interest in sustainability to be on the rise – with more than half of individual investors planning to increase their allocations to sustainable investments in the next year and more than 70% believing strong ESG practices lead to higher returns. Investors recognise that being a sustainable business leads to long-term, sustainable profits, so if you're looking for an injection of capital, you'll need to show you've got a strong and future focused ESG strategy.

Attracting talent

If you want to attract the best talent you need to show a commitment to ESG. 49% of Gen-Zs and 44% of millennials make career choices based on their personal ethics according to research from Deloitte and a survey carried out by Cleartrace found that millennials are likely to choose to work for, and stay with, a company that has a strong sustainability plan. For many roles in the creative, tech, and digital sectors it’s still a candidate’s market, so if you want to attract – and retain – those who can drive your growth, showing a commitment to purpose beyond profit can help.

Customer and community demand

Just as investors and talent demand action on sustainability it’s increasingly a consideration for clients and customers too. Whether it’s customers who want to prioritise a using a more ethical service or a B2B partner looking to work with a like-minded supply chain, a focus on sustainability can give you a competitive edge. And with the rise in the B Corp movement there’s a growing – and increasingly influential – network of companies focused on business for good. Firms who want to work together to transform the global economy to benefit people, community and the planet.

Purpose and profit

As leaders it can seem like a constant juggle of multiple, often competing objectives. But rather than seeing purpose and profit as competitors it's time to see them as allies.

Looking at your growth strategy through an ESG lens won't just tick boxes but can deliver all kinds of opportunities for improvement and help you to sustainably scale.