It is becoming increasingly popular for businesses to integrate a sustainability policy or governance within their business. Boost Business adviser Jonny Slater explains what sustainability is and how your business can benefit from adopting it as part of your business growth plans.
Well, sustainability involves meeting our own needs without compromising the ability of future generations to meet theirs. It encompasses natural, social, and economic resources. A sustainable business aims to have minimal negative impact or potentially a positive effect on the environment, community, society, or economy.
This approach is increasingly important as we strive for net zero and carbon neutrality in response to climate change and its severe impacts.
Many top companies are adopting sustainable policies or certifications like B Corp certified. However, integrating sustainability into business strategy goes beyond certification. Real sustainability requires embedding it into the core business model and communicating transparently about these efforts.
This not only helps mitigate environmental and social issues but also drives business success.
Things that you may consider adopting to make your business more sustainable are:
Here are the key reasons why adopting a sustainability policy or governance could be beneficial to your business:
Incorporating climate actions into business strategy and transparently communicating environmental, social, and governance (ESG, see further details below) impacts provides a competitive edge. Sustainable companies attract new talent, customers, and investors by positively impacting society.
Sustainable businesses often see financial rewards. Offering products and services that are sustainable throughout their life cycle attracts clients who are increasingly aware of responsible production and consumption patterns. These companies often grow faster than their unsustainable competitors.
Sustainability initiatives can lead to significant cost savings. Investing in equipment and innovations that optimise production processes reduces waste and stranded assets. By minimising unnecessary loss and waste, businesses can achieve increased savings.
A sustainable business commits to zero tolerance of discrimination, bullying, illegal practices, and inequalities. This commitment builds a positive employer image and strengthens brand perception among stakeholders. Consumers are increasingly operating from a sustainability mindset and demanding greater transparency and sustainable options from brands.
Certified B Corporations, or B Corps, are companies that use business as a force for good. They make decisions that serve communities, consumers, employees, and the environment. To become a B Corp, businesses undergo an independent assessment of their impact, verified by B Lab, a non-profit organisation.
Once a company meets the required performance threshold, it must amend its corporate charter to include the interests of all stakeholders, not just shareholders.
B Corp Certification doesn’t just evaluate a product or service; it assesses the overall positive impact of the company. This aligns with growing consumer interest in sustainability. A survey by the Innovation Group found that 92% of people are trying to be more sustainable, and 90% believe businesses have a responsibility to take care of the planet and its people.
Becoming a certified B Corporation is a powerful way to communicate your business values and commitment to sustainability.
While B Corp Certification is a robust model for demonstrating a commitment to sustainability, it may not be suitable for every business. The certification process can be rigorous and resource-intensive, which might not be feasible for all companies.
However, the principles and practices promoted by B Corps can serve as a valuable framework for any business aiming to be more sustainable.
Beyond helping limit global challenges, sustainability can help push business success. In the current economic climate, many investors also now use environmental, social, and governance (ESG) metrics to analyse an organisation’s ethical impact and sustainability practices.
These include the examples below, such as a company’s carbon footprint, water usage, community development efforts, and board diversity:
By integrating sustainable practices into your business strategy, you can contribute to a more inclusive and sustainable economy, enhance your competitive advantage, and build a stronger, more resilient business.
Whether or not you pursue B Corp Certification, the commitment to sustainability will position your business for long-term success and positive impact.
If you’re looking to grow, scale or start your business, use Boost; Lancashire’s Business Growth Hub. We offer a range of funded business support services. Call our Business Support Helpdesk on 0800 488 0057 to find out more or complete our enquiry form.
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