There is a plethora of sustainability accreditations; ESG reporting frameworks and differing corporate expectations of SMEs. Even for a business owner who acknowledges the importance of sustainability, it can be daunting to determine where to focus efforts for maximum impact and the question “Where on earth do I start?” Here we delve into some key areas to prioritise when developing their sustainability strategies where you can make a tangible difference, quickly.
Energy Efficiency and Resource Management
One of the most impactful areas for SMEs to focus on is energy efficiency and resource management. Looking at your Scope 1 and Scope 2 GHG emissions enables you to set a baseline from which to monitor reductions; this area is critical to your Net Zero planning (see https://small99.co.uk for a brilliant introduction and free tools and access to informative webinars to help you on your journey).
There are lots of ways to reduce your energy usage from installing LED lighting to use of smart plugs. Where you are renting office space, it may seem difficult to persuade your landlord to move to a renewable energy tariff or implement better ventilation and insulation but often there are significant incentives to upgrade or “green” the built environment. If you own the building you work from, investigate any council group-buy schemes for solar or other green energy supply options. It may be that these are not something you can afford to do immediately but can be put on the “investigate later” list.
In addition to energy management, people often overlook how you manage resources. This includes all the inputs to your business – from stationery; to product packaging; how you cater for events; employee food waste and water. Brainstorm with your team to determine how you can reduce waste and the cost of waste disposal. It is often easier than you think to lower your environmental footprint and also realise cost savings over a relatively short time.
Transport & logistics
This includes movement of goods you provide (and use) as well as your people. How do you deliver your goods? Do you have a diesel fleet of vans or utilise a delivery network of electric vans? Do people commute to work? By what means? Does your company offer any salary sacrifice schemes where employees can take advantage of generous discounts to buy a bike to commute or lease an Electric Vehicle? Looking at this area can often identify quick wins or at least once you know your current situation, you are in a better position to speak to consultants or research alternatives (that could include encouraging working from home).
Supply Chain Sustainability
Speak to your clients and speak to your suppliers. What information do your clients need from you for their sustainability reporting? This information can often be a great place to start developing your sustainability strategy as you know that you are focusing your resources on the areas that matter most to your clients. It can also deepen the relationship as your client will see you going the extra mile for them as well as putting you in a stronger position for future tenders. For your suppliers, engage them positively. Ask what they are doing, do they already have a sustainability accreditation? How and where do they source their products from? In addition to the environmental aspects of creating a product, there is also transportation to consider as well as ethical and fair labour practices.
Employee Engagement and Well-being
A sustainable business is not just about environmental impact—it also extends to the well-being of its workforce. How do you hire? Do you pay above a living wage? Do you have Diversity, Equality and Inclusion policies and do you use them? Do you reward long service? Do people feel valued? Often some areas of an employee experience are excellent (health & safety; training; social activities) with others (grievance handling; appraisal management) given a lower priority with knock-on business risk.
Engaging your employees to define the organisation’s sustainability strategy can be a powerful way to bring people together. In addition, you are likely to find individuals or teams who are passionate about sustainability and keen to drive progress, either as they see it as a way to differentiate themselves or because they can implement at work, sustainable practices they already practice at home. For example, if your business creates tangible products, it is most likely to be those that build
or oversee the technology that can identify where there is waste; health and safety risks or inefficiencies (energy waste where machines may be left on standby overnight).
Community Involvement
SMEs are often deeply rooted in their local communities. You may well already support local charities, sponsor community events, or implementing programmes that benefit those in the vicinity where the business operates.
Once you’ve looked at these five key areas, you will be well on the way to knowing what you currently do and where you could aspire to. There is no one size fits all solution as each sustainability strategy will be as unique as the business that has developed it.
If you need help taking the information you’ve gathered and working out how to prioritise where to focus contact our Founder Anjuli at anjuli@sustainablebusinessventures.co.uk