Liv McGill asks: Where should SMEs start when it comes to becoming a sustainable business?
Sustainability is no longer just a buzzword; it is a business imperative.
With increasing customer expectations, tighter regulations, and growing pressure from supply chains, small and medium enterprises (SMEs) must embrace sustainable practices.
“Understanding your current environmental impact is the first step”
But where should you start, and how can you ensure your sustainability efforts are credible and impactful?
Here’s a practical guide to help your business take smart steps toward sustainability.
Start with an audit
Understanding your current environmental impact is the first step. Conducting a sustainability audit will help identify areas where you can improve efficiency, reduce waste, and lower carbon emissions.
- Internal review: Assess energy use, waste management, water consumption, and procurement processes.
- Third-party audits: Organisations such as SEAI (Sustainable Energy Authority of Ireland) offer support for energy audits.
- Carbon footprint calculation: Tools like the Climate Toolkit 4 Business (by Enterprise Ireland and the Department of Enterprise, Trade and Employment) provide tailored recommendations for businesses.
Set realistic sustainability goals
Once you have assessed your current impact, set clear and measurable sustainability goals. These should align with customer expectations and larger companies in your supply chain who need to comply with the Corporate Sustainability Reporting Directive (CSRD).
Key goal areas:
- Energy efficiency: Reduce energy consumption and switch to renewable sources.
- Waste reduction: Implement circular economy practices by reducing, reusing, and recycling materials within your business operations. Identify waste streams and find ways to repurpose or upcycle by-products. Consider adopting compostable or biodegradable alternatives where possible. Encourage repair and refurbishment over disposal to extend product lifecycles.
- Sustainable procurement: Choose suppliers committed to sustainability. Partner with suppliers who use sustainable packaging and explore take-back or refill schemes for products.
- Carbon reduction targets: Work towards net-zero emissions by a defined date.
Aligning with the UN’s Sustainable Development Goals (SDGs) can also add credibility to your efforts.
Communicate sustainability to customers and supply chain partners
Transparency is key to building trust. Once your sustainability goals are in place, ensure you communicate them effectively to customers and stakeholders.
- Sustainability reports: Publish an annual sustainability statement, even if you’re not legally required to.
- Eco-certifications: Consider obtaining certifications such as Origin Green – a sustainability programme for the Irish food and drink sector, ISO 14001 – an internationally recognised standard that helps businesses improve their environmental performance by implementing an effective environmental management system (EMS), or B Corp certification – for businesses that meet high social and environmental performance standards, accountability, and transparency.
- Storytelling: Share real stories about your sustainability journey on your website and social media to engage customers and partners.
Government initiatives & grants
There are several supports available to help SMEs transition to sustainable practices:
- Enterprise Ireland’s Green Transition Fund – supports companies in their decarbonisation journey – from initial planning and capability building to investment, research and innovation. It aims to support companies as they prepare for a low-carbon, more resource-efficient future.
- SEAI Energy Supports – provide grants and funding to help businesses improve energy efficiency, lower carbon emissions, and transition to renewable energy sources.
- Local Enterprise Office (LEO) Green for Micro Programme – provides advice and support to help small businesses become more sustainable.
- Climate Action Vouchers – provide funding to help businesses evaluate their environmental impact and develop strategies to reduce carbon emissions, improve energy efficiency, and enhance overall sustainability.
- Accelerated Capital Allowance Scheme – allows businesses to claim tax relief on investments in energy-efficient equipment, encouraging SMEs to adopt sustainable technologies while reducing costs.
Learning from SMEs on the sustainability journey
Several Irish SMEs have successfully integrated sustainability into their operations.
- The Burren Smokehouse – a small artisan food producer that has embraced sustainability by using eco-friendly packaging, sourcing responsibly, and investing in renewable energy solutions to reduce its environmental impact.
- Vermillion Design – a Dublin-based graphic design agency that has integrated sustainability into its printing processes and supply chain by using recycled materials, reducing waste through digital-first design strategies, and working with eco-friendly suppliers.
- The Handmade Soap Company – focuses on ethical sourcing, eco-friendly packaging, and carbon reduction initiatives. They use sustainably sourced raw ingredients, avoid single-use plastics, and operate a refill system to reduce waste. Their factory runs on renewable energy, and they actively work towards a zero-waste production process.
Take the first step
Sustainability is a journey, not a one-time project. Start small, measure progress, and build on successes. Whether it’s conducting an audit, setting clear goals, accessing funding, or learning from others, every step toward sustainability strengthens your business for the future.
By embedding sustainability into your business strategy now, you can future-proof your company, build stronger relationships with larger supply chain partners, and assure customers that you are committed to responsible business practices. What are you waiting for!
Main image at top: Photo by Alexander Abero on Unsplash
-
Bank of Ireland is welcoming new customers every day – funding investments, working capital and expansions across multiple sectors. To learn more, click here
-
For support in challenging times, click here
-
Listen to the ThinkBusiness Podcast for business insights and inspiration. All episodes are here. You can also listen to the Podcast on:
-
Spotify
-
SoundCloud
-
Apple
