Sustainability for Small Businesses

Sustainability and ESG (Environment, Social and Governance) is not just for big businesses with corporate responsibility departments.

In this article we outline the benefits to small businesses of doing sustainability correctly and provide some guidance on how to begin the journey to become a sustainable small business.

Do small businesses need to do Sustainability?

Absolutely yes. Sustainability is not the preserve of large multi-national corporations.

Small and medium sized enterprises (SMEs), defined as businesses with fewer than 250 employees, account for 99% of all firms in the OECD, 70% of the total workforce and generate 50-60% of the value added.

Not only is there a clear role for small business in making a positive impact to society and address environmental challenges, but there are substantial benefits available for those smaller businesses that do sustainability well.

5 benefits of sustainability for smaller businesses

Boost revenue

“75% of ALL generational groups from Gen Z to Baby Boomers care about being sustainable and offering sustainable products”. Forbes

Customers care about sustainability more than ever. Clear, engaging and authentic sustainability practices are vital for any small business to grow and maintain a loyal customer base. But sustainability can also drive value creation, when it is put at the driving force of a sustainability strategy and has great potential to generate economic value through new products, services, and market opportunities.

Reduce costs

As the operating costs of materials, energy, waste processing, and transport increase, so the benefits increase for those businesses with a keen focus on eliminating waste, reducing energy consumption, and optimising resource use. Effective sustainability initiatives can also help manage legislative and reputational risk.

Build brand reputation

Business sustainability done well means working with a clear purpose and sticking to clear principles. At a time where establishing trust is more important than ever, and where transparency is considered a licence to operate, a clear set of sustainability principles helps build trust in your brand and in your business.

Retain top talent

One of the biggest business benefits of sustainability is higher engagement levels from your employees. Not only can it provide motivation to your existing staff, reducing turnover and increasing productivity, but it also allows you to attract top talent.

Drive innovation

Research has found that taking societal impact into account when setting business strategy spurs innovation and helps companies identify new products, services and business models.

Attract investment

Investors are more and more interested in companies that can clearly demonstrate their sustainability credentials. Environmental, Social and Governance (ESG) metrics are regularly used to determine the sustainability of an organisation and top ESG performers receive higher valuation multiples, all else being equal, than those with medium ESG performance.

How sustainable is your small business?

Clearly sustainability has many benefits, but research by the UN Global Compact found that while 92% of CEOs agree integration of sustainability is critical to business success, less than half are actually integrating sustainability into their operations.

How can you find out what needs to be done for your business to start taking advantage of these? The first step is to understand where you currently stand and identify what the gaps are to being a leading sustainable business.

To make this a little easier, we have created the Sustainable Business Scorecard.

By answering 20 questions you will receive a sustainability score for your business and a free tailored report with a breakdown of areas where you are doing well or could improve, as well as personal guidance on how to improve your rating.

It is free and you can receive your tailored report in just 5 minutes.

Take the Sustainable Business Scorecard and start your journey to a more sustainable business.

Good Business Sustainability

At Good Business Sustainability we pride ourselves on helping to make being green easier.

We provide a broad range of sustainability consultancy services tailored to small businesses, entrepreneurs, and start-ups. GB Sustainability provides consultations, projects, and retainers across a range of sustainability topics and business sectors.

If you would like sustainability support for your business or project, set up a free call with a sustainability advisor today.