Why Sustainability Should be Top of Your Business Agenda
Creating, updating or developing a business strategy or agenda is never a simple or straightforward task. Not only are people’s ideas and opinions being taken into consideration, but there is also the unpredictability of what may or may not stand the test of time, or be achievable at all.
However, with that being said, there are certain aspects of a business agenda that should not be avoided. For example, increasing sales, implementing a marketing strategy, targeting more clients or customers and so on. Yet one vital and scalable part of your business agenda, which is achievable no matter the size of your business, is sustainability.
What is business sustainability?
Business sustainability is the impact the business has on the environment and society. This covers numerous areas, such as diversity and inclusion within a company, as well as issues such as a company’s carbon footprint, CSR strategy, hiring practices and so on.
Businesses need to make a conscious effort to ask certain questions when ensuring business sustainability is being discussed as part of an overall business strategy. For example:
Is our recruitment process attracting a diverse range of candidates?
Is our company targeting and helping a specific audience or demographic?
What kind of impact does our business have on the local community?
Is our business creating waste? If so, how much?
Does our company culture need to be improved? If so, how?
Asking these types of questions will ensure that a company’s intentions and direction will benefit anyone directly or indirectly impacted or involved in the business.
Carbon neutrality
“Carbon-neutral” is a phrase used to describe the state of an entity, such as a company, where the carbon emissions they have caused have been balanced out by funding an equal amount of carbon savings elsewhere. Businesses being carbon neutral can be a key part of a company’s overall CSR strategy and business sustainability efforts, as it demonstrates that they are environmentally conscious.
A survey conducted by YouGov in 2019 found that almost half of 502 UK businesses were aiming to be carbon-neutral by 2030, with 8% adding that they had already achieved it, such as Aldi UK and Marks & Spencer.
The survey was developed to track the climate attitudes of representatives from a variety of businesses, in sectors such as technology, retail, oil, mining, education, construction and many more. Out of the 502 respondents, 93% stated that climate change is real and being driven by human activity.
One of the questions in the survey asked, “Is your business planning to be net-carbon-neutral?”. Almost half of the respondents commented that their company had plans to become carbon-neutral by 2030, with the majority of this group stating that it was feasible for their organisation within the next two to five years.
Statistics such as these show that although carbon neutrality is on the radar of many UK businesses, not all are prioritising it. Becoming carbon neutral is only achievable with a conscious effort to keep it at the forefront of business plans, hence why a small number of businesses claim to have already achieved it. However, with many more companies aiming to be carbon neutral within the next decade, this suggests that not all business owners see sustainability as a number one priority.
Sustainable operations
As a forward-thinking business, it is advisable to invest time into researching sustainable operations for your company - not only to be profitable, but also to have a positive impact on everyone and everything surrounding your organisation.
The term “sustainable operations” refers to the evaluation of whether a company’s existing practices can be maintained, without putting future potential resources at risk. Social, environmental and economic demands are considered the three main pillars of sustainability within a business, and although these terms seem quite broad, they cover many specific areas for businesses to analyse.
For example, HSBC’s “Made for the Future” report found that:
69% of businesses plan to make manufacturing more sustainable
57% of businesses plan to increase their spend on sustainability
66% of businesses intend to improve their internal practices
48% of businesses say sustainability is a vital part of their growth plans
24% of businesses believe sustainability is crucial for recruitment and retention
Ultimately, with sustainable operations being such a large part of so many companies’ strategies and growth plans, it is going to be difficult for businesses that have not yet put a plan into action.
An example of this is retailers such as Missguided and Pretty Little Thing being challenged for their “fast fashion” being unsustainable, as well as issues around the human rights of their workers. With so many competitors in their industry making a conscious effort to be more open about their sustainable practices, it is going to be challenging for the companies that are yet to catch up.
The same applies to companies in all industries and sectors around the world. With statistics showing that the majority of people care about sustainability, diversity and ethical practices, the businesses who are yet to prioritise are most likely concerned about the cost of doing so. However, those that are yet to invest in such a crucial part of their long-term business strategy will soon fall behind the eco-friendly and D&I conscious organisations.