HOW SMALL AND MIDSIZE BRANDS CAN INCREASE SUSTAINABILITY

Written by Jane Marsh

Although most people would agree large corporations must be more sustainable, they often overlook the role of smaller companies in protecting the environment. Small and midsize businesses make up most enterprises worldwide. Collectively, they play a huge part in affecting air and water quality, global energy use and waste generation. Here’s how they can be more sustainable.

Create A Culture Of Sustainability

Managers should make sustainability part of workplace culture to ensure employee participation. Business leaders should emphasize the importance of recycling, saving energy and reducing waste. They should also go a step further and make these actions easy.

For example, installing a water bottle filling station encourages people to use fewer plastic alternatives. Making recycling bins accessible helps workers dispose of their waste properly.

Additionally, people often act more sustainably when they’re well-informed. A 2017 study found that when people read signs about water conservation in their neighborhoods, they watered their lawns up to 61% less frequently than in communities without signs. Posting information about energy and water conservation in the office could have a similar effect.

Build Esg Into The Business Model

The easiest way to be

More

sustainable is to directly incorporate environmental, social and corporate governance (ESG) frameworks into the business plan. There are many frameworks from which to choose. For example, over 80% of the world’s 250 largest companies use the Global Reporting Initiative ESG framework, and around 10,000 businesses are part of the Carbon Disclosure Project.

New business owners should use ESG frameworks to focus on making ethical products and paying their workers a fair wage. They should ensure the companies involved in manufacturing, supplying and shipping their products have values aligned with their mission statements.

Additionally, business owners should set emissions targets and aim to source their products from net-zero suppliers. They can use specific, measurable, achievable, relevant and time-bound (SMART) goals to help them achieve their environmental mission.

Focusing on ESG does more than boost sustainability — it also attracts eco-conscious customers and inspires long-term brand loyalty. A 2022 study also found that over 40% of U.S. shoppers would pay more for sustainably sourced products at the grocery store.

This finding highlights a growing trend among consumers, which is that people are increasingly holding businesses accountable for their choices. Many customers have begun deliberately choosing ESG-conscious brands over cheaper options. Therefore, a company with sustainability built into its plan will likely have an edge over competitors.

Switch To Green Energy

Small and midsize brands can dramatically improve their sustainability with renewable energy. Solar panels are an obvious choice for many companies looking to lower their costs and carbon footprint. Because governments often subsidize solar power, many businesses can afford photovoltaic panels for the first time.

Some businesses also take advantage of wind power. Offshore turbines generate less electricity than onshore wind but are cheaper and easier to build. Onshore turbines generate substantial power and have relatively low energy transportation costs. Both can be excellent choices for companies looking to be more sustainable.

Geothermal energy is another green option. It comes from underground, making it a much more stable energy source than wind or solar since it’s less subject to climatic conditions. Many businesses use geothermal energy to generate electricity or directly heat the building.

Buy Carbon Offsets

Expecting never to harm the environment is unrealistic. Setting a goal of creating zero emissions, generating no waste and building in a location without any ecological impact is downright impossible. It can also lower employee morale because it sets unreasonably high standards.

Instead, many businesses purchase carbon offsets to mitigate their environmental impact. Companies may browse a portfolio of projects and choose one that aligns with their mission statement. For example, they might sponsor an organization that plants trees, builds solar farms, restores degraded ecosystems or provides clean water in underserved areas.

Carbon offset projects shouldn’t serve as free passes to wreak environmental havoc. Instead, they should make up for small, inevitable contributions to climate change and ecological damage, like building a parking lot or painting an office building. Carbon offsets allow companies to do more good than harm.

Cut Down On Waste

Reducing waste is one of the best ways small and midsize businesses can be more sustainable. It takes many forms, including unused food, extra packaging, and fuel used while a vehicle is idling or driving an inefficient route.

Companies should look for small ways to make a big impact in this area. For example, office managers can place recycling and composting bins in high-traffic areas. Instead of styrofoam — which takes roughly

500 years to break down — coffee shops can provide paper cups.

Businesses should also consider letting employees work remotely, even if just once a week. This improves air quality by cutting down on vehicle emissions. Allowing the entire staff to work from home also saves energy for building owners in the form of lighting, heating, cooling and water usage.

Use Sustainable Products

From decor to stationery, the average business contains many products that could be more sustainable. For example, companies can buy recycled paper for printing. Instead of using plastic trash bins, file organizers and pen holders, office managers can choose metal, glass or wood versions.

Furnishing the building also presents a great opportunity to make sustainable choices. Rather than buying chairs or desks made of plastic or virgin wood, business owners can choose furniture made of bamboo, metal or reclaimed wood.

Reduce Water And Energy Usage

Cutting down on energy use bolsters sustainability, and there are many ways to do it. For example, office managers can program the building’s thermostat to shut off overnight automatically. They can replace outdated, energy-hungry hardware with newer models that use less power and install smart LED bulbs that turn off when the building is unoccupied.

Better insulation can also make a building more energy-efficient. Sealing the cracks around windows and doors, using curtains to block sunlight and installing thicker windows go a long way toward reducing power use.

Businesses can install low-flow sinks and toilets to reduce water waste. They can also incorporate native plants — which need minimal irrigation — into the landscaping to use less water for gardening. This can improve sustainability by supporting the local ecosystem.

Improving Sustainability

There are countless ways for businesses to be more environmentally and socially responsible. Often, all it takes is making small changes that require little effort on the business owner’s part. Multiple small and midsize companies that collectively become more sustainable can change the world.