Clean Wins, Dirty Losses: The Business of Sustainability
By Lorenzo Salamanca
Sustainability has shifted from being a nice idea to something that shapes the way businesses survive and grow. In today’s market, consumers, governments, and investors all care about how companies treat the environment. This is no longer about looking good. It’s about staying competitive. Seventy-eight percent of American consumers say that sustainability is important to them, and 60 percent say they’re willing to pay more for products that are produced responsibly. Companies that take this seriously are reaping the rewards.
One of the clearest examples of this is Patagonia. The company has been using 100 percent organic cotton since 1996, long before most other brands even talked about sustainability. Patagonia doesn’t just claim to care about the planet. It traces its materials, monitors its supply chain, and invests in regenerative farming. This consistent commitment has created a loyal customer base. When people buy from Patagonia, they are also buying into the values the company stands for.
Moncler is another brand that has leaned into environmental responsibility. In 2023, it recycled over 80 percent of its nylon scraps and transitioned all of its offices, factories, stores, and logistics hubs to renewable energy. This decision didn’t hurt profits. It actually made the company stronger. Moncler was ranked third on Time’s list of the world’s most sustainable companies in 2024. These choices made the brand more appealing to new consumers and helped secure its place in a changing luxury market.
The numbers reflect this shift. Sustainable products now make up 17 percent of the global market and are growing at 7.34 percent annually. By comparison, conventional products are growing at only 2.76 percent. Investors also view companies with strong environmental practices as more stable and lower risk. These trends are turning sustainability into smart business strategy.
But taking this path isn’t easy. Making operations greener can be expensive. Switching to sustainable materials, redesigning supply chains, and meeting new standards require heavy upfront investments. Small businesses may find these costs especially difficult. Even big brands face uncertainty because consumer behavior doesn’t always match consumer values. People say they care about the planet, but not everyone follows through when it’s time to make a purchase.
There is also the risk of pretending. Volkswagen tried to sell its cars as environmentally friendly through its “Clean Diesel” campaign. In reality, the company had manipulated emissions data. The scandal led to a fine of 1 billion euros in 2020 and severely damaged Volkswagen’s reputation. It proved that greenwashing can backfire in a devastating way.
The direction of the market is clear. Companies that invest in real, measurable environmental practices are gaining trust and market share. Those that fake it are being exposed. Patagonia and Moncler show what happens when environmental responsibility is treated as a foundation rather than a slogan. Volkswagen shows the cost of doing the opposite. In the modern economy, clean wins. Dirty loses.
