Sustainability has long been framed as a moral imperative. Increasingly, it is also viewed as a business requirement demanded by regulators, investors, and consumers alike. But in boardrooms and budget meetings, one question continues to surface: what is the return?
Most companies can easily point to savings from energy efficiency upgrades or waste reduction, but the real return on investment (ROI) of sustainability often goes beyond what shows up in quarterly reports.
Five overlooked business gains from sustainability
1. Faster sales cycles
When sustainability credentials align with customer expectations, deals do not just close more often, they close faster. Procurement teams are increasingly screening suppliers on emissions data and ESG performance. Demonstrating credible action upfront removes friction, helps you win preferred-supplier status, and shortens the path to revenue.
Example: The US Sustainable Investing Trends 2024/2025 report notes that 73% of respondents expect the sustainable investment market to grow significantly in the next one to two years, driven by client demand and regulatory evolution.
ROI metric to watch: average sales cycle length before vs. after integrating sustainability data into RFPs.
2. Stronger supplier relationships
Supply chains are under scrutiny, but the upside is rarely mentioned. Companies that invest in helping suppliers decarbonise often benefit from preferential pricing, reduced disruption, and more collaborative partnerships. That stability translates into lower risk and better margins over time.
Example: The Global Asset-Owner Survey 2024 from LSEG / FTSE Russell reports that 86% of asset owners with US$10B+ AUM are implementing sustainable investment considerations as part of their strategy, showing how pervasive supplier and upstream chain ESG expectations have become.
ROI metric to watch: supplier retention rates, contract stability, and cost savings from reduced disruption.
3. Lower cost of capital
The investor story is clear: ESG performance influences financing terms. What is often overlooked is the trust premium that comes with transparent, verifiable data. Lenders and investors reward clarity with lower rates and better access to capital, which can have a compounding effect on enterprise value.
Example: A Morgan Stanley report in early 2024 found that 77% of individual investors globally say they are interested in investing in companies or funds that combine financial returns with positive social and environmental impact. More than half say that their interest has increased in the last two years. This kind of demand shapes what investors look for, including funding terms.
ROI metric to watch: changes in loan spreads, credit ratings, or investor participation following ESG disclosures.
4. Premium pricing power
Consumers, and increasingly B2B buyers, are willing to pay more for products with credible sustainability claims. Beyond loyalty and retention, this opens up room for premium pricing strategies. Done well, climate-aligned branding not only protects revenue but actively lifts margins.
Example: The IEEFA found that in 2024, despite market headwinds, sustainable funds drew USD 31 billion in net inflows globally. This underlines that many investors believe sustainability and financial return go hand in hand. That kind of market behaviour suggests that sustainability-branded or sustainable-product lines can command more interest and potentially premium pricing.
ROI metric to watch: price elasticity testing on sustainable product lines compared to standard ranges.
5. Talent magnetism
The cost of replacing an employee can exceed 150% of their annual salary. Companies with strong sustainability commitments attract mission-driven talent and see lower attrition rates, particularly among younger workers. That hidden ROI shows up as reduced hiring costs, higher productivity, and stronger employer brand equity.
Example: A recent KPMG survey reported that one in three 18–24-year-olds has turned down job offers because a company’s ESG credentials did not align with their values. In addition, a Deloitte study found that nearly half of Gen Z and millennials report rejecting employers over climate concerns.
ROI metric to watch: turnover costs, employee engagement scores, and offer acceptance rates.
💡 Want practical steps to calculate and communicate these benefits?
Our guide on The ROI of Sustainability explores the high cost of inaction, real business case studies, and a roadmap for building resilience and profitability through climate action.
How to measure and report the ROI of sustainability
If the five benefits above are the what, this is the how. Use this framework to help transform sustainability initiatives from a compliance exercise into a capital allocation story that finance can underwrite.
- Set baselines you can audit
Define both a financial baseline and an emissions baseline. Use recognised boundaries for Scope 1, 2, and material Scope 3 so year-on-year comparisons are real, not estimated. The GHG Protocol Corporate Standard is the starting point. - Tag revenue influence in your CRM
Flag opportunities and tenders where sustainability influenced the decision. Track whether ESG criteria were present in the RFP, whether verified data was shared, and whether the account requires supplier decarbonisation. Then report win-rate lift and cycle-time reduction. - Put a price on avoided emissions
Apply a transparent carbon price so operations and finance can compare projects. Anchor your shadow price to benchmarks in the World Bank’s State and Trends of Carbon Pricing and disclose your assumption. - Quantify supplier engagement value
Tie supplier work to risk and continuity. Track your CDP reporting Supplier Engagement score and show how programmes reduce disruption. In 2022, CDP reported that buyer engagement helped suppliers deliver 43 million tonnes of emissions reductions, signalling measurable upside from structured collaboration. - Link to cost of capital and disclosure
Map climate risks and opportunities to financing terms. Align reporting with ISSB’s Climate-related Disclosures (IFRS S2) to bring climate information into mainstream financial reports and improve comparability for lenders and investors. - Report in one narrative
Consolidate results into a single view for leadership:- Revenue: win-rate, sales-cycle days, sustainability-influenced pipeline
- Cost: payback, NPV, unit cost change
- Risk: disruption days avoided, compliance findings, supplier coverage
- Capital: loan spreads, credit ratings, investor participation
- Talent: offer acceptance, attrition, engagement scores
Why it matters now
With regulatory frameworks diverging across regions, from the EU's CSRD to California’s SB 253 and 261 and the Australian Sustainability Reporting Standards (ASRS), companies may be tempted to treat sustainability purely as compliance. But that narrow view misses the bigger picture: sustainability is not only risk management; it is one of the most reliable investments a business can make in its future resilience, growth, and competitiveness.
The real ROI is not just about reducing costs. It is about accelerating revenue, strengthening relationships, and building a company that thrives in uncertain markets. When measured properly, sustainability is not a line item on the expense sheet, but instead, a multiplier for business value.
How Zevero helps
At Zevero, we help organisations prove this ROI every day. Our platform combines accurate data with expert advisory support so you can:
- Track emissions and financial outcomes side by side
- Set baselines that stand up to audit
- Build reduction strategies that tie directly to business performance
- Report in a way that finance teams and investors understand
👉 Ready to uncover the hidden ROI of your sustainability strategy? Talk to our team today.
