Sustainable business practices: 5 ways you can change your company for good

Here’s a sobering statistic for those that think ESG is just a corporate box-ticking exercise: 9 in 10 (88%) of global consumers say they would choose sustainable companies over unsustainable ones. 55% of customers are willing to pay more for eco-friendly brands, and sustainability-focussed S&P 500 companies have 18% higher ROIs, compared to their competition. The stats don’t lie: sustainable practices aren’t just good for the planet, they’re good business too. So what are some simple ways any company can clean up their act? Here are five ways you can change your business for good.  

1. Clean-up your supply chain 

Consumers are becoming increasingly aware of procurement and global supply chains, so it’s worth tracing your product back to its source. Are there any opportunities for more ethical suppliers? Electrified logistics companies? Alternative raw materials? Less packaging? Less waste? The first step is to improve transparency: conduct regular audits, and have your suppliers report on their ESG commitments and progress. If they can’t do that, shop elsewhere. Look for B Corps and Fair Trade partners, where possible, or members of Cleaning Accountability Framework (CAF) – that’s the world’s leading anti-slavery supply chain initiative.  

2. Reduce your financed emissions  

Financed emissions are still the piece of the sustainability puzzle that no-one talks about. You can implement all the green initiatives you want, but if your business is still banking with an organisation that invests in fossil fuels, you’re probably doing more harm than good. Where your business keeps its money, what it actively invests in, they both contribute to your overall carbon footprint. The easiest solution? Bank with an ethical bank that has a public commitment never to invest in fossil fuels. Educate yourself on how investments impact climate change, and put your money where your ESG policy is.  

3. Transition to renewable energy 

This is such an easy win for businesses, regardless of size or complexity. Companies can quickly reduce their operational footprint by switching away from fossil fuels and towards renewable energy sources, such as solar, wind or hydro. Over 260 major global corporations have already made a commitment to switch to 100% renewable energy, and the best place to start is choosing a Greenpower provider. Most Australian energy retailers offer a 100% Greenpower product, so you get the exact same power delivered plus the chance to claim a zero emissions attribute for electricity in your carbon accounting. Here’s a good guide to get your started. For smaller businesses, you can also look at cutting out the middle man and installing solar panels directly. 

4. Implement circular economy practices  

The circular economy is a complex model, but it boils down to this: materials are re-used, recycled and repurposed as much as possible, in order to reduce waste and resource consumption. In other words, are there opportunities in your business to use your resources better, or to reduce waste, or to offset your impact? Officeworks is a good example here. In 2017, Officeworks launched its Restoring Australia program, which plants two trees for every one used in the paper products it sells. Additionally, Officeworks offers recycling services for electronics and ink cartridges, diverting hundreds of tonnes of e-waste from landfills every year. This circular approach enhances the company’s brand image and contributes positively to Australia’s waste reduction targets. 

5. Set science-based targets 

If this is your first time dabbling in corporate sustainability, you might be overwhelmed by all the industry buzzwords. ‘Carbon offsetting’, ‘carbon reduction’, ‘Net Zero’ and so on. Unfortunately, many of these terms have become problematic. Carbon offsetting and carbon credits, for example, are now pretty widely accepted as an accounting trick – planting a few trees over here to ‘offset’ your emissions over there. They’re good for PR, but they don’t actually contribute to a reduction in carbon emissions. A better yardstick is Science-Based Targets (SBTs). These are scientific, quantitative and transparent emissions reduction targets for your business, designed to be sector-specific and based on IPCC modelling. You can read more about Science-Based Targets, and how to implement them, over here.