Owners of small businesses may believe that sustainability strategies are the domain of larger organisations, their business is too small to have an impact, or that adopting sustainability practices will be too expensive. And many still believe that there must be a compromise between business profitability and ethical business practices. But from my experience, this is not true. No matter the size of the organisation, a sustainability strategy can benefit a business in numerous ways.
Businesses have different reasons for focusing on sustainability; some of our clients need to have ISO 14001 EMS certification as a prerequisite to do business, others see a business case for return on investment, and others adopt sustainable business practices because of ideological beliefs and values. This diversity of motivation shows some of the range of ways having an effective sustainability strategy can deliver value to your business.
1. REDUCED OPERATING COSTS
I know this is stating the obvious but costs for energy and waste keep increasing. The cost of disposing waste to landfill has at least doubled since I started consulting, so it just makes good business sense to recycle or reuse waste wherever possible, or avoid it altogether. When it comes to waste, think outside the square; how can your ‘waste’ be someone else’s ‘treasure’, and what other recycling streams are available?
Even small changes can reduce your expenses, especially when it comes to energy efficiencies. Start with the low hanging fruit; ensure appliances are switched off when not in use (e.g. office machinery, lights in staff rooms, air-conditioning, factory machinery), have someone check the premises at the end of the day to ensure EVERYTHING is switched off, and ensure your machinery is properly maintained and fully efficient.
Consider your procurement processes; when replacing factory machinery or compressors, do your due diligence. Ask the manufacturers about the energy efficiency of each item AND ask them to verify their claims. Check what government assistance is available – both state and federal – for purchasing energy efficient machinery and lighting.
2. BRAND LOYALTY AND AWARENESS
A successfully implemented sustainability strategy can positively impact a company’s reputation and brand image. It’s important to demonstrate that your company is taking responsibility for its actions and embracing change for the greater good. Your clients want to partner with companies that have ethical business practices.
Many of the larger corporates, banks, telcos, insurance companies and builders are initiating Suppliers and Vendors Codes of Conduct to ensure companies like yours are addressing human and labour rights and extending your environmental management systems through your supply chain. They don’t want the RISK of partnering with companies where there is the possibility of human rights abuses. This will damage their brand so it’s important for your organization to address these issues, not only internally, but with your own suppliers.
It’s crucial for your clients to have confidence in your company and products so, if you are taking this type of action, then ensure you make this clear in your communication. Make sure your certifications and sustainability initiatives are clearly stated on your company website. Ensure you can substantiate your claims and be authentic with your communication.
3. DON’T BE LEFT BEHIND
Although not every client cares about sustainability, more consumers, end users and construction companies want to partner with ethical businesses. I’ve seen the growth in demand for this increase, especially in the last 2 years.
Sustainability, by its very nature, is in constant flux and is based on the principle of ‘continual improvement’. An example of this is that Type 1 Ecolabelling certification requirements are regularly reviewed and updated to match industry trends and market expectations. When I first started consulting in 2008, it was all about the environment. Now clients (end users) and construction companies have compliance requirements around social responsibility, including human and labour rights and how this extends through your supply chain.
If you don’t have a strategy, then you are constantly reacting to market expectations and pressures. Not every situation can be foreseen, but make sure you are not on the back foot. Don’t miss out on having your product specified for a Green Star Project because you don’t have your product certified. Understand that clients want to partner with sustainable and ethical businesses and consider this as part of your strategy and course for action. Think about what policies, procedures and training you need to demonstrate social responsibility.
That’s where developing a strategy and a roadmap can help you keep up and/or stay ahead of the needs and expectations of your clients, and also ensure that you meet product Type 1 Ecolabelling certification requirements.
4. ATTRACT NEW CUSTOMERS AND INCREASE SALES
Product manufacturers sell products in Australia and also globally, so having certifications such as Type 1 Ecolabelling or ISO 14001 Environmental Management System (EMS) gives your organisation credibility. Clients seeking to use you will understand that you have a commitment to addressing environmental issues.
If you want your products to be certified for Green Star Projects, then it’s a must have to have your product certified by one of the following certification schemes, which are recognised by the Green Building Council of Australia (GBCA):
- Carpet Institute of Australia Limited - Environmental Certification Scheme
- Global GreenTag GreenRate
- Australasian Furnishing Research and Development Institute - Green Tick
- Good Environmental Choice Australia (GECA)
- The Institute for Market Transformation to Sustainability - Sustainable Materials Rating Technology
Be mindful, that some of the largest projects in recent years have been Green Star Projects, like the Barangaroo precinct in Sydney. If you’re interested in some of the great sustainability initiatives that have been initiated by Lendlease, then check out the link below – it’s quite impressive. Click here for more information.
5. EMPLOYEE ENGAGEMENT
This might come as a surprise to some, especially in small businesses, but from my experience spending time with factory, admin and sales staff, I have seen a real shift in staff’s attitude towards sustainability, particularly in recent years.
There is a sense of pride from staff that their company is initiating sustainable practices and staff enjoy the group training sessions and activities, where they too can have a say, participate and contribute. They are the key players when it comes to improvements so it’s particularly important for them to be engaged. Poor staff moral can lead to passive sabotage in the form of reduced productivity, bad workmanship, quality issues and absenteeism, all of which can damage a company’s profitability.
Employee engagement is especially important when it comes to your sales team. Employees who are passionate about the company and its products are the best advocates. I have found when I’m inducting sales staff who are new to an organization, they are chuffed when they understand that their new employer has some great stories to tell about their sustainability initiatives. Good sales staff understand the importance of any type of differentiation from competitors, especially when it comes to partnering with the top tier construction companies.
KEY TAKEAWAYS
- Consider your clients and what their expectations are of your business in terms of sustainable outcomes
- Consider the company you want to create for ALLyour stakeholders, including staff
- Consider a way forward, where to invest your dollars and in what certifications
- Be honest and authentic in your communication to your stakeholders
- Seek opportunities for reducing business and operating costs
With a sustainability strategy as the guide, a company can be ready for changing expectations, trends, drivers and regulations in their industry.