Becoming a More Sustainable Business – Where To Start?

Josh Pitman outlines where businesses should begin, and why climate action starts with what’s within their control

By Josh Pitman

Despite some kinks on the road, the path for business is gradually winding its way in the direction of greater sustainability. A growing number of organisations are sharing emissions data voluntarily through frameworks such as the Science Based Targets initiative (SBTi), but legislation and changing consumer expectations will pick up stragglers.

Some larger organisations in the UK must already share Scope 1 and Scope 2 emissions, in line with the government’s Streamlined Energy and Carbon Reporting (SECR) framework. Scope 1 emissions are from sources owned or controlled by a business, whereas Scope 2 are indirect emissions from purchased energy.

Other businesses may be impacted by extended producer responsibility (EPR) if they handle packaging, and companies with EU operations may need to meet other requirements, such as the Corporate Sustainability Reporting Directive.

But where does this leave small to medium-sized (SME) businesses?

According to the Federation of Small Businesses, there are 5.5 million SMEs in the UK. These account for around three-fifths of jobs and half of turnover in the UK private sector. These companies may have less time and funds to allocate towards reducing the business’s impact on the planet. However, the urgency for many bigger firms to become more sustainable has turned attention onto supply chains to report on Scope 3 emissions, which are those that occur up and down the supply chain, where the largest part of a firm’s carbon footprint is likely to be. This means SMEs in these supply chains are under growing pressure to share their own environmental impact. By not proactively sharing and reducing their footprint, these smaller organisations risk losing out to competitors that do.

Furthermore, consumers are increasingly looking at sustainability credentials when buying products and services. SMEs that are not responding to this shift will lose out.

Where to begin?

The focus for any company looking to reduce its impact on the environment is to first look inside the business to measure and reduce Scope 1 and 2 emissions. This includes emissions made directly by the firm. For example, through its fleet of vehicles, running the boiler, or the energy it buys for heating its offices, or powering its machinery.

Once measured, businesses can see where the greatest emissions are made and adjust. Steps could include changing the energy supplier, improving recycling processes, finding energy-saving solutions, such as more efficient appliances and light bulbs, or implementing energy-saving policies in the workplace.

Scope 3 emissions are next, which includes all indirect emissions up and down the supply chain. These are much more difficult to monitor because they are out of the business’s direct control. To track and reduce Scope 3 emissions, suppliers will need to be proactive and transparent. Opting to work with suppliers that also prioritise sustainability is essential for firms to keep their overall footprint low.

A boost to the bottom line

As well as the benefit to the planet of businesses measuring and reducing their environmental impact and adopting sustainable practices, there are other benefits linked to the bottom line. Business Reporter shares that one third of UK business leaders report that sustainability action is already having an impact on their companies’ revenue, profitability, and growth. Sustainability also often goes hand in hand with cost savings because the focus is on becoming more efficient and producing less waste.

In addition, being more sustainable as a business is a significant employment draw because people want to be part of a firm that has integrity and is responsible. This will help to attract and retain the best people.

It follows then that businesses should actively engage their employees to come up with ideas, big and small, on how to improve and reduce the impact of their operation. This could be as simple as changing office cleaning products to creating whole new product lines or working practices. As well as building engagement and buy-in, the people at the coal face every day will also come up with the best ideas.

What resources are out there?

The business incentive for becoming more sustainable goes beyond the urgency of climate action, and there are a growing number of resources available to support SMEs in this journey. For example, the SME climate hub, Carbon Trust, or certifications such as becoming a B Corporation.

For a small business, contacts are key. Becoming part of thriving networks such as the B Corporation movement can also bring with it other avenues to business, as well as a focus for the ongoing journey towards greater sustainability. There are also many reputable schemes that businesses can consider supporting or partnering with to protect our rainforests, such as Rainforest Trust and Amazon Conservation.

A key message on becoming a more sustainable business is that this journey is one that never ends. There will always be more that can be done, particularly as advancing technology opens up new opportunities. Above all else, business leaders need to stay light on their feet and open to change.

About the author

Josh Pitman is Managing Director of sustainable packaging firm Priory Direct, which supplies sustainable packaging to over 21,000 businesses and helps large retailers reduce their carbon footprint to lower the environmental impact of ecommerce. The firm is a certified B Corp and working towards becoming net neutral.