FINDING BETTER WAYS

How can embracing sustainability benefit franchisors and franchisees, as well as the planet?

With the drive towards sustainability continuing apace, franchisors, existing / potential franchisees, and the wider public care more than ever about the impact a business has on the planet. Last year, the Westpac New Zealand Franchise Awards introduced a category for Excellence in Sustainability for the first time. It’s an indication how important the issue has become for franchise brands and franchise buyers alike.

According to www.business.govt.nz, making your business more sustainable is about looking at what you do, what you buy, and how you use and dispose of things. Customers are increasingly expecting their favourite brands to take a responsible approach to the environment and, with last year’s weather events still top of mind, to do their bit towards addressing climate change. Brands are also coming under increased scrutiny from the media, industry partners, organisations and their own employees.

In many ways, franchises are ideally positioned to do this. While supply chain management and system development are handled by specialists at the franchisor end, the actual delivery of the products or services is handled by franchisees – local business owners who can have a real impact in the communities they serve. They can ‘think global, act local’, as the old saying puts it.

All this means that if your franchise embraces sustainable practices, you can both preserve our planet and power a profitable business. In addition to doing your bit for the environment, you can also boost reputation, loyalty, and generate advocacy for your brand.

But true sustainability is about much more than supermarkets removing single-use plastic bags, or cafés switching from plastic straws to paper ones. We talked to the winners of the inaugural Excellence in Sustainability Award to find out more.

Thinking ahead

Paramount Services has been recognised for its pioneering work in sustainability spanning several decades – founder Galvin Bartlett was outlining the commercial cleaning franchise’s environmental initiatives in Franchise New Zealand magazine over 20 years ago. Today, Avi Rao, one of the company’s directors and Sustainability Lead for Paramount, praises Galvin’s vision, which he says paved the way for the franchise to position itself as an early adopter of sustainable practices in New Zealand.

‘Sustainability has been at the forefront of what we do because Galvin has always been ahead of the game,’ says Avi. ‘We were the first New Zealand commercial cleaning company to go palm oil and microbead-free, and we have continued our commitment to minimising our environmental impact – and that of our clients – since the mid-1990s.’

Engaging KPMG as advisors, Paramount set about an ambitious target in 2019. ‘We wanted to become carbon neutral by 2025, and they helped us come up with a plan which involved compiling a detailed carbon inventory through a significant screening tool to assess all the carbon we needed to be charting.’

Avi sees this work as falling under four banners: chemicals, waste-tolandfill diversion, climate change, and having a holistic approach to sustainability across the business. It paid off: the concerted investment of time and energy has seen Paramount Services gain Toitū net carbon zero certification.

‘It takes a lot of offsetting,’ Avi explains. ‘We believe we need to keep ourselves honest in that space and we are very serious about achieving carbon neutral status.’

Action on the ground

In looking for ways to reduce the company’s environmental footprint for itself and its franchisees, as well as its clients, Paramount has introduced organic waste recycling; champions EV vehicles and charging points throughout its network; focuses on landfill waste diversion and wastewater reduction; and is an advocate for sustainability.

The future-thinking franchise has engaged in significant research to ensure its sustainability credentials span all aspects of the business. It also prides itself on partnering with its commercial clients to help them achieve their sustainability goals.

Working with its supply partners, Paramount Services has created its own Paramount Care range of cleaning products to ensure minimal impact on the environment. Used by all franchisees to create a credible, consistent approach to eco-friendly cleaning, these products have Environmental Choice Accreditation. The company also introduced a Brush No Flush system for wastewater reduction, which requires fewer toilet flushes during the cleaning process. Little things like this can have a surprisingly big effect across a large franchise.

‘This alone is helping Westpac save 3.58 million litres of water across its New Zealand sites annually,’ Avi is proud to share.

Bringing clients along with them on the sustainability path isn’t always simple, however, he says. ‘While Westpac are keen to adopt new ideas, with others it can be an exercise in patience,’ Avi smiles. ‘As much as we want to do our bit to change the world for the better, it’s sometimes a slow process to convince clients to share in that philosophy.’

And sustainability is about more than being green. Avi is also proud of the progress Paramount is making in its support of ensuring Kiwis are paid a ‘living wage’ – something he sees as an important part of the bigger picture. ‘We offer our clients a costing model which is about reallocating more to all the hard-working people who are out there making it happen.

‘It’s about building relationships and collaboration among everyone involved, but we have a strategy, and we provide transparency. We also have a compliance team with their fingers on the pulse to ensure that all these benefits are actually being delivered at site level.’

The importance of being honest

Doing what you say you do is vital. ‘Greenwashing’ is a word that has the power to do great damage to any brand. Suggesting that your product or service delivers a greater level of positive environmental impact (or lower level of negative impact) than it actually has, can create mistrust, customer loss and negative publicity.

It can also lead to legal action, as was evidenced in the first greenwashing claim lodged in a New Zealand court late last year by lawyers for a group comprising Climate Action New Zealand, Consumer New Zealand and the Environmental Law Initiative. The action claims Z Energy breached the Fair Trading Act 1986 by misleading the public with its environmental messaging. Z Energy denies the claim. Lawyers suggest a High Court ruling in their favour would both hold Z Energy accountable and clarify the law on greenwashing in this country.

Read more about the dangers of greenwashing – and the associated concept of ‘greenhushing’ – on page 27.

Strong selling point

When you can prove your sustainability credentials, as Paramount has, it can be a strong selling point when it comes to attracting franchisees, in Avi’s experience. ‘When a brand is out there, being successful, with excellent systems and innovations, people want to come on board. If you have sustainability as such a high priority, that’s another enticement for people to join us. It’s not just about generating more business: it adds to the offering. it adds to the feel-good flavour.’

The judges in the 2023 Franchise Awards said that Paramount, ‘… demonstrated an understanding of sustainability, and an impressive commitment to all areas of it, from sourcing products, through to supporting their team and franchisees.’

Looking ahead, Avi says Paramount will work tirelessly to ensure the company achieves renewal of its Toitū Net Carbon Zero Organisation certification – an annual process requiring concerted effort across the business. He also feels a focus on ESG (Environmental and Social Governance) reporting will help inform, solidify, and further accelerate Paramount’s progress on sustainability. ‘We’re looking at how we can achieve even more impactful social outcomes in the diversity space, as well as environmental areas.

‘We see ourselves as waving the franchise flag in the sustainability field. It’s about inspiring people and inspiring the whole franchise community to join us on this journey.’