What does it mean to be a sustainable business in 2022?
According to a recent survey done by Xero, up to 68% of small businesses want to become more sustainable in 2022.
But what does it mean to be a sustainable business?
Sustainable business practices are defined as:
1. At a minimum your business will not harm people or the planet and create value for stakeholders.
2. Your business will aim to improve its social impact, environmental impact, and performance.
In 2022, a sustainable business will be measured on its positive impact on people, the planet, its profits, and its overarching purpose to do the right thing in these three areas.
What are the benefits of building a sustainable business in 2022?
There are five key benefits to building sustainable practices within your business.
1. Accelerated Innovation
If you are looking to improve your footprint in 2022, chances are you will be forced to investigate innovative practices and new technologies. Some examples of this may include new practices for waste management, redesigning a product to incorporate the latest advancements in recycled materials and more energy-efficient equipment.
2. Risk Management
Risk management can be an essential tool in driving innovation and value creation within a business. By incorporating sustainable solutions within your risk management strategy, you can greatly improve the longevity and quality of your business practices.
3. Customer acquisition and retention
Thanks to the evolution of marketing, customers are more aware of brands that are doing their part to reduce their environmental impact.
- Research into consumer behaviour shows, in the last 12 months 55% of Australian consumers are ‘conscious consumers’ who make purchase decisions based on their environmental values, ethics or fair trade.
- 2 in 5 consumers are willing to pay more for ethical and sustainable products in Australia
- 24% of Australian consumers find it difficult to identify whether a brand operates ethically or sustainability
- 73% of global consumers are willing to change consumption habits to lessen their negative impact on the environment.”
4. Talent Attraction and Staff Retention
Employees are becoming more aware of a company’s sustainable practices. Having a reputation as a green business shows you have a bigger purpose beyond making a profit and employees are proud to be a part of this process.
5. Financial gain
Finally, by becoming a more sustainable business, the payoff may be that you can also reduce costs.
One of the easiest ways to cut down on your business electricity bills is to install solar panels. In many cases government grants may be available. Or you may invest in environmentally friendly materials that are available at a cheaper price point.
It’s clear that becoming a sustainable business is the way of the future. Start looking at ways in which you can update your business processes to improve your environmental footprint!
By building a sustainable and environmentally conscious business this will often generate business value, due to the fact that your customers, suppliers, staff and other stakeholders hold greater value in your goods or services provided.