Sustainability should be at the heart of any business’s strategy, writes John Cradden. He outlines the risks, opportunities, the research and the resources to plan ahead.
When it comes to putting your business on a more environmentally sustainable footing, all lot will depend on your mindset. Do you see sustainability as merely a burdensome box you need to tick, or do you see it as a strategic investment and opportunity?
Recent research by market research firm Red C on behalf of Bank of Ireland suggests that the attitude of Irish businesses is split along similar lines, with 62% seeing sustainability as a risk while 73% see it as a critical factor guiding their future success.
“If you plan it and do it, let people know. Tell your team, shareholders and customers about your initiatives.”
Whatever way you approach it, Irish SMEs have some way to go in terms of planning, with just 13% of respondents having already set sustainability targets. This tallies with Enterprise Ireland research showing that only one-third of Irish businesses have a sustainability plan.
If we assume that sustainability for businesses is all about balancing environmental, social and economic considerations, there’s no doubt that much of the incentive to having a plan in place is not just because expectations around the sustainability have risen across the board, but because of the potential financial rewards.
The term sustainability, after all, is interchangeable with the acronym ESG (environmental, social and governance). So it’s not all about climate change. As the sustainability guide by Chartered Accountants Ireland puts it: aligning ESG with your strategic business planning should result in you “making decisions that are good for your shareholders, your community, your employees and the environment”, but also that your company will better withstand “future shocks” and rapidly changing market conditions.
But sustainability plans need to have implementation roadmaps as well as targets and objectives, so how can you get started on your firm’s ESG journey?
Understand sustainability-related business risks
Many of the risks you face as a business will depend on what sector you are in, but sustainability-related risks are common to all firms. These include rising energy costs, insurance premiums, waste management and productivity costs, not to mention the costs of not taking action now. There are also issues around finance, competition, compliance and reputation management.
Understand the opportunities
Making your business truly sustainable is an opportunity save costs, including through strategies better energy efficiency and cutting down on water usage. The costs of buying more energy-efficient equipment, vehicles and materials can be offset by grants and tax reliefs.
If you can prove your sustainability credentials as a business, this will help you attract more talent as well as new clients. You can also build greater resilience into your business by adopting frameworks that help you identify and respond to ESG risks and opportunities.
Do some research
This could be as simple as looking around your premises or offices and checking out things like whether you’re using refillable ink cartridges, eco-friendly cleaning products, and light sensors to reduce electricity usage. The EPA’s Carbon Footprint Calculator is a useful tool for this.
You could do an energy audit to get some recommendations on an action plan to reduce energy consumption, and choose sustainable options where they exist, from eliminating single-use plastics right through to changing your vehicle fleet to EVs. This review should be extended where possible all the way up and down your supply chain.
Measure what you are already doing
Remember that sustainability isn’t all about climate change – businesses have social, economic and cultural impacts too.
The chances are you are already doing many of things that a good sustainability plan should contain.
Start small and don’t reinvent the wheel
Rather than adopt an whole slew of sustainability initiatives that could ultimately tie you up in knots, choose two or three goals that you are passionate about or are important to your community and build things from there. You could also look at what other organisations of a similar size in your sector are doing, or even adopt the approach of a larger organisation if it works for you.
Be inclusive with your planning
Involving your team will make sure that everyone in the business makes energy saving a priority. Some of them may already be taking their own steps, so ask your team for suggestions and tips.
Start now
Once you’ve figured out what sustainability should mean for your business, create an action plan to achieve it with timelines.
Not starting now could mean more costs to bear in the future due to inaction.
Get help
Just as SMEs are the backbone of the Irish economy, the transition to a sustainable economy wouldn’t be possible without them. The good news is that there is lots of supports, and awareness of them is spreading. For instance, the number of SMEs interested in grants to help them invest in sustainable measures increased by over 40% in the past year, according to the bi-annual Uisce Éireann SME Sustainability Sentiment Survey.
There are a number of general government supports to help you get started improving the sustainability of your business as well as specific schemes aimed at particular elements.
Enterprise Ireland has developed a Green Transition programme involving Local Enterprise Offices, which includes the following supports:
- Green For Business – two days of mentoring with a green business consultant
- Energy efficiency grants – for investment in technologies and equipment to reduce carbon emissions
- GreenStart – up to seven days of consultancy or training on how to improve the environmental performance of your business
- Webinars and workshops – EI’s Green Transition webinars and Sustainability Kickstarter workshops aim to help firms incorporate sustainability principles into their business plans
There’s also the:
- Climate Toolkit 4 Business
- Skillnet Ireland’s Climate Ready Academy
- SEAI support schemes for adopting renewable heating systems or energy audits
- Uisce Eireann advice on how to conserve water
- Tips from MyWaste.ie to manage your waste responsibly and efficiently.
Communicate your plans
If you plan it and do it, let people know. Tell your team, shareholders and customers about your initiatives.
Describe your activities on your website and in social media. Add sustainability as a separate section in your annual report.
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