An environmental focus is no longer just a little extra something positive you can say about your company. It’s becoming less of a competitive differentiator and more of a requirement in today’s business environment. That’s because more people, especially Millennials and members of Gen Z, want to see that the companies they do business with share their values, including concern about the climate crisis.
Not only that, but consumers want access to environmentally friendly products and are willing to pay more for them. Environmental technology company GreenPrint stated in its Business of Sustainability Index that 66% of study respondents “would be willing to pay more for a product that is environmentally friendly,” 2% more than last year.
But going green isn’t just good for attracting customers. It’s also good for saving money, improving your reputation, finding quality talent, and creating a healthier workplace. In the following sections, we delve into how going green can improve your business, how to do it successfully, and specific actions to take.
Why Go Green?
Beyond simple concern for the environment, going green entails many concrete business advantages.
Money Savings
Often, sustainable practices are more cost-effective than those that tend to damage the environment. For example, ceasing the use of single-use coffee pods eliminates the waste of the packaging they come in, which is better for the planet. Buying coffee in larger cans also costs less. Other examples include providing a water cooler that employees can use to fill their own bottles rather than purchasing plastic bottles full of water and installing electric hand dryers in washrooms and food preparation areas rather than continuing to buy paper towels.
Another obvious example is minimizing electricity use. Your power utility should be able to help you find ways to do it, such as changing the types of lighting you use, buying energy-efficient appliances, and installing smart devices to automate your electricity usage.
Tax Incentives
Sustainable strategies often come with tax credits or deductions. Research the latest federal, state, and local offerings for things like buying energy-efficient appliances, installing solar panels, and using electric vehicles (EVs). In addition to saving money based on tax incentives now, companies that improve their eco-friendliness set themselves up to comply with future industry rules and government legislation.
Improved Reputation
Going green can help your bottom line in yet another way: bringing in new customers who will be attracted to your eco-friendly approach. To get the word out, start a marketing campaign to let the public know that sustainability is an important value for your company. Additionally, find ways to include that fact in your marketing and sales materials across the board. Improving your reputation by going green could also lead to more and better funding and partnering opportunities.
Talent Attraction and Retention
Just as customers are becoming more particular about the values of the companies they do business with, employees are more particular about the values of companies they work for. More people, especially younger workers, want to ensure the company they are employed by is serious about helping the environment and addressing the climate crisis. Make sure potential and current employees know everything you are doing to achieve sustainability and improve your eco-focus.
Healthier Work Environment
By doing things like operating in eco-friendly buildings, using recyclable office supplies, and purchasing sustainable raw materials, companies make their work environments healthier for all employees. Doing so can enhance productivity due to a decrease in conditions such as poor sleep and respiratory problems that can be caused by things like chemicals in carpeting, all of which can reduce employee effectiveness. Supporting activities like biking to work can help employees get more exercise, improving health and efficiency.
Sustainability
Perhaps the most important reason of all to go green is that it is simply the right thing to do. With the climate crisis becoming more obvious, every individual, organization, and company must do what they can to ensure a healthful living environment well into the future for everyone on the planet.
How to Go Green Successfully
No matter where you are on your green journey, there’s likely much you can do to improve. That means it’s an ongoing process that shouldn’t be entered into lightly. Here are some best practices to get you started.
Make a Plan
Before taking action, sit down and determine exactly what you want to achieve. Your goals should be attainable and actionable. You can have different levels to your goals, such as starting with smaller, easier strategies and working your way toward larger, more difficult ones. For example, larger goals might be to become 100% carbon neutral or get 100% of your raw materials from local vendors. It could take a while to reach those goals. In the meantime, reach for smaller ones like revamping your recycling program or changing your packaging.
The following elements are examples of what your plan should include.
- A mission statement that spells out your intentions and the reasons behind them
- Specific goals and timelines for when you want to accomplish them
- A list of the people responsible for carrying out this mission and their roles and responsibilities
- A sustainability plan that includes the specific actions the team will take, such as recycling more, investing in smart devices, and encouraging remote work
- Results of any initial assessments that show where the company is now versus where it wants to be
- A communication plan to help employees understand the sustainability mission (a kickoff event might accompany this to get everyone enthused)
- Governance information to help everyone involved understand how the program will be run and how accountability will be ensured
- A marketing plan to help communicate the sustainability program to the general public
- Information about how often the plan will be reviewed and updated
As you work through your plan, observe what parts of it work well and what parts of it could be improved. It’s possible that some of your ideas turn out to be incompatible with your other business strategies. If that’s the case, rethink different ways you might be able to achieve the same objectives.
Evaluate Your Energy Use
One of the best ways to set goals for greater environmental focus is to determine where you are now. Your local electric utility should be able to provide an energy audit to find out where you might be able to improve. Typical areas to explore are more efficient lighting equipment, smart lighting and thermostats, and energy-efficient appliances, computers, and related equipment.
Get Employee Buy-In
Every employee, from the C-suite on down, should be involved in your sustainability efforts. Make the initiative a company-wide goal and track how far you’ve come. Consider creating contests that individuals or teams can participate in, such as which team bikes to work the most. Make it easy to accomplish these goals by doing things such as installing showers for employees who bike to work.
Integrate sustainability as a company value and initiate change management efforts if needed. Include information about this aspect of your business in materials you provide to customers and prospective employees.
If your employees work from home, provide incentives to be greener in their home offices. For example, you might contribute a percentage toward them installing solar panels at home or send out reusable commuter coffee mugs that they can use at home or refill at their favorite coffee shop.
Help Employees Get Certified
There are many sustainability certifications that individuals can get. They are worth going after because they provide your staff members with a sense of achievement and also let the world know that your company is truly dedicated to sustainability. GreenBiz lists 33 sustainability certifications that individuals can get for various reasons. Review the list and share it with your team to see if any of the certifications might be appropriate for them. Then find ways to support them in pursuing these professional goals.
Avoid Greenwashing
In moving toward sustainability, it’s important to avoid the appearance of being all talk. For example, a company that offers organic food might make this fact widely known yet produce other types of toxins in its operations. This phenomenon is known as greenwashing. The following video describes more about what greenwashing is and how to avoid it.
For companies looking to enhance their reputation, a phony nod toward environmentalism could be worse than not doing anything at all. Customers and prospective employees quickly identify companies that don’t walk the walk. Consider that any efforts toward looking green might be better spent moving in a more sustainable direction.
Ways to Go Green
There are many ways to become a more sustainable company. Here are just a few ideas you might want to try.
Increase Energy Efficiency
Most companies could be more energy efficient. For starters, you can use LED lights, light sensors that only turn lights on when someone is in the room, and smart thermostats that similarly adjust the heating and cooling systems based on occupancy and other factors.
Another strategy to consider is using EVs. This method can be particularly powerful if your company has an entire fleet. Not only can it reduce carbon emissions and help your company meet sustainability goals, but it can also save money since EVs are cheaper to maintain than traditional internal combustion engine vehicles.
Use Renewable Energy Sources
There are many ways to incorporate renewable energy into your business operations. First, you can find out what options your electric utility provides. It might offer electricity from renewable sources or be able to set you up with your solar or wind generation capability. Such installations often come with tax credits. For example, according to the Solar Energy Industries Association, the federal solar investment tax credit offers businesses up to 26% of the cost of a new system.
Adopt Online Billpay
To eliminate wasteful paper use, ensure you are paying all your company’s bills online. Additionally, develop a way for your customers to pay online. To get started, ask the financial institutions you currently work with if they have a solution for you and your customers. If you don’t have any luck, research online bill-pay solutions such as QuickBooks Online, FreshBooks, and AcceptPay. Once you have a system set up, be sure to promote it to customers and tout the environmental benefit of going paperless.
Recycle More
In an office environment, there are many opportunities for recycling. They include the obvious, such as using bins for recycling paper and paper products. You can also recycle things like electronics, fixtures, and furniture. Check with local organizations to find out where and how to donate these items. As a bonus, fixtures, and furniture can be donated to organizations like Habitat for Humanity, which see that they go to people who need free or inexpensive building materials.
With paper, you can take it a step further and move toward becoming a paperless office. For example, rather than using paper files, you can keep documents in a network or cloud storage system. Consider purchasing devices for employees that make it easier to keep everything digital. These might include laptops, tablets, or electronic notepads such as reMarkable. Also, implement digital solutions for processes normally taking place on paper, such as visitor sign-in systems.
Update Products and Services
Plastic materials and packaging can be replaced with paper as an eco-friendlier option that is recyclable. Packaging includes the containers that products come in and the packing material used for shipping.
Another area to consider is bags. You can encourage customers to use their bags or boxes to convey the items they purchase from your physical store. To make it easier for them to do so, you can have reusable bags available for sale. As a bonus, you can imprint the bags with your company logo for a promotional boost.
Green versions of many services may be available as well. For example, a house cleaning service could use only chemical-free cleaners.
Finally, don’t forget about your building itself. If you are looking for a new one, want to build, or need to renovate, seek out a LEED-certified contractor. These providers use eco-friendly materials and methods.
Use Local Suppliers
The farther products, supplies, and raw materials must travel, the larger the carbon footprint. Therefore, you can support the environment by finding local sources for these items as frequently as possible. A bonus to using this strategy is that you get to support the local economy that likely supports you. If you must look outside your local area for suppliers, seek out sources with an eco-friendly approach.
Support Remote Work
Enabling employees to work remotely can help your company be more eco-friendly in several ways. First, it reduces the amount of office space needed and, therefore, the amount of electricity and other resources you must use. Second, it reduces carbon emissions by eliminating the need for car commutes. Third, it reduces paper waste by forcing workers to use electronic communication methods.
Encourage Green Travel
Much has been made of the carbon emissions released by airplanes. You can reduce your company’s contribution to this phenomenon by allowing employees to take more time to travel by train or boat. Upon arrival, they can use public transportation to get between destinations, book green hotels, and bring their toiletries to avoid plastic waste from using hotel-provided items.
Ask for Ideas
Since many companies and individuals are looking for ways to be more sustainable, anyone might be the source of your next great idea. Request suggestions from employees, customers, and vendors. You could even make it a fun activity or a contest, such as requesting ideas from your social media followers and offering a prize to the person who provides the best one.
A Shift in Priorities
Sustainability in business can be defined as no longer putting profit over environmental concern and instead attempting to heal the planet from the climate crisis. As the business world seeks alternatives to a strict profit motive, sustainability is a higher priority than it used to be. However, profit and eco-friendliness don’t have to be at odds.
Companies looking for environmentally friendly solutions and a more sustainable model will find many other benefits of moving in this direction, including a better reputation, which attracts customers, talent, and investment, as well as cost savings and higher profits. For those companies that may not want to pursue sustainability for its own sake, these advantages and many others should be reason enough.
