Green sustainability in business is about actively adopting eco-friendly practices and solutions. Companies adopt these practices to reduce their environmental impact, operate more efficiently, and boost growth. For small businesses, however, green solutions may be considered more of an afterthought amid day-to-day operations and cash flow. But green sustainability doesn’t have to be something that only big companies can practice.
Let’s look at ways you can use green solutions and grow your own business sustainably.
What is Green Sustainability in Business?
Going green, or adopting eco-friendly practices, is about minimising your impact on the environment. This includes using recycled and sustainable materials, lowering your energy consumption with energy-efficient products, and reducing waste.
A great example is when a business finds that its energy bill is high because it uses fluorescent lighting, so it replaces it with lower-wattage lights like LEDs. This reduces their power consumption, lowers their utility bills, and minimises their carbon footprint. Green sustainability doesn’t just help the environment; it can also save you money.
Green Sustainability misconceptions
There are some misconceptions about business solutions regarding the environment. Let’s address some of them.
Sustainability is expensive
This is a misconception because it only focuses on the short term. Sustainability may seem expensive upfront, but over time, it saves money through higher quality and efficiency.
For example, due to poor, cheap insulation practices, Aussie homes are known for being cold in winter and boiling in summer, driving up energy prices from overuse of fans and air conditioning. Using greener, high-quality insulation increases installation costs but reduces power bills, giving you a return on investment over time.
Sustainability sacrifices quality
This is also false. Green sustainability looks at quality as a feature. Wasteful practices occur because manufacturers cut costs and use cheaper materials. There will always be bad products out there, even green ones, but just because a product or service is environmentally friendly doesn’t mean it’s poor quality. For example, Aesop is a successful brand that offers high-quality products with an environmental focus, using recycled plastic and non-animal-tested materials. Quality products and services are made because of the people behind them and their passion for their work.
Sustainability isn’t profitable
Sustainability is profitable. Green solutions are a draw for Aussie consumers, as 46% of buyers list sustainability as a major factor in their purchase decisions. This misconception just doesn’t hold up in the real world: there are plenty of profitable businesses that succeed by marketing themselves as ethical and green.
Look at brands like Patagonia. Green solutions and practices are woven into the company’s vision, products, and operations. Consumers purchase from Patagonia because they value fair trade, low carbon footprints, and environmental impact, resulting in annual sales of over $1 billion.
Green Sustainability Case Study
What obstacles keep small businesses from going green? Often, when you start, you’re more focused on getting off the ground than on the environment, but using green solutions from the get-go can help set you up for success. Here is a real-world example.
Example: Alto Hotel
Small to medium-sized businesses consume between 30,000 and 1,000,000kWh (kilowatt-hours) annually. Energy bills can be a significant utility expense for companies, depending on the industry. For the Alto Hotel, in the accommodation/hospitality sector, energy is a major cost.
Built in 2006, the business owners were focused on sustainability being part of their hotel build. Sustainability features were planned from the start and incorporated into construction. These green practices added an extra $450,000 to the $5 million build, but saved them more in the long run.
Outcome
Thanks to the green solutions, the Alto Hotel saves $50,000 a year in energy bills. The practices are also part of the business’s vision and are incorporated into its marketing strategy. The hotel is now a successful boutique property that accommodates thousands of guests and draws visitors for its eco-friendly practices.
How can I make my business more sustainable?
There are plenty of ways you can make your business more sustainable, from implementing energy-saving measures in construction to developing your products and services. Applying for government grants can be a good way to implement cost-effective energy efficiency strategies.
With the Alto Hotel, the business has used different methods to reduce its carbon footprint:
- Used a ‘staggering stud’ wall system, which improved the efficiency of their insulation. This reduced their heating and cooling energy use by 36% on its own.
- 98% of their lighting needs are LED and Fluoro, which use 90% less electricity than fluorescent lights.
- The hotel purchases 100% Greenpower (wind, hydro, and solar) and offsets its remaining greenhouse gas emissions.
In the case of Patagonia, the company shows that turning a profit doesn’t come at the cost of the environment. The materials they use to make their apparel line have a low environmental impact, such as plant-based wax cotton, non-chemically treated cotton, and recycled polyester.
What you can do
So, how can you reduce your carbon footprint, save costs, and increase profits? Start small with energy-efficiency tactics like those at the Alto Hotel.
Green solutions to add to your business:
- Cost-saving measures: Reduce your energy consumption by installing and using products with higher efficiency ratings and that are environmentally friendly, such as installing solar panels and a battery for energy storage.
- Reduce your carbon footprint: Use recycled materials and products with lower environmental impacts. For example, an e-commerce business can use recycled cardboard for packaging and plastic-free materials.
- Increase value proposition: Incorporate green materials or environmentally conscious solutions into your services to maximise customer value, i.e. salons using natural products (chemical-free) that offer better service and care for clients.
- Waste reduction: Reduce your reliance on single-use materials, like going digital and having a no-paper policy for your admin and accounting.
Green Sustainability and your business
Sustainability cultivates a great mindset for running a business: how can I lower my costs, increase quality, and boost my profits while doing my part? It can offer creative solutions to problems you may have otherwise been unable to solve. By incorporating sustainability into your operations, you’re not just saving the planet: you’re saving your business.
