Business essentials for a sustainable business!
Planning a sustainable business from the outset will always pay greater dividends into the future and ensure your business is equipped with the ability to adapt in changing circumstances.
One, of the essential elements of a modern business and particularly important for those partnering with or aspire to partner with big business, and that is your approach and actions towards Sustainability. By definition, sustainability is about how your business responds to the:
Economic,
Social, and
Environmental aspects of today without compromise on tomorrow.
So where do you start, or how do you expand on your existing strategy and plans?
We are so glad you asked!
Let’s take a look through our summary of practical actions on sustainability that you can start today!
Economic Sustainability
Risk Management
Assess and Mitigate Risks ~ Identify and address potential economic, environmental and social risks associated with your business, such as business contract impacts if you don’t hold a sustainability policy and framework, supply chain disruptions or climate-related challenges chemical use, water consumption or release, carbon emission footprint, utility costs to name a few.
Sustainability Policy, Compliance and Reporting
Stay Informed ~ Keep up-to-date with economic, environmental and social regulations that may affect your industry.
Set Goals ~ Establish clear sustainability goals that can be shared internally and externally, and regularly assess your progress. It’s important to seek feedback, suggestions, and new ideas on your actions as innovation in Sustainability is constantly evolving.
Policy ~ Showcase your business philosophy and practices on Sustainability with a written and published Sustainability Policy.
Reporting ~ If you report on your Sustainability actions internally, look at ways to compile an external report to track and communicate your progress in achieving sustainable goals. For large Australian proprietary organisations compliance will be based on amendments to Australian Securities and Investment Commission Act 2001 and the Corporations Act 2001 (Cth) which is set to introduce standardised, internationally-aligned reporting requirements for businesses, to ensure they are making high quality climate-related financial disclosures. Compliance is based on the International Sustainability Standards Board IFRS S2. If you are a Director of a large Australian proprietary organisation, click here for more information on Climate Reporting requirements.
Supply Chain Management
Sustainable Sourcing ~ Choosing suppliers and partners who prioritise sustainable and ethical sourcing of materials and products and promoting these in your customer and marketing activities.
Local Sourcing ~ Opting for local suppliers to reduce transportation-related emissions and to support local economies. Being an advocate for our local economy will not only showcase your sustainable approach but you are also encouraging a local and circular economy.
Innovation
Eco-Friendly Products ~ Develop and promote sustainable products that have a lower environmental impact that are used within your business. You never know who you may inspire to change for the better!
Circular Economy ~ Embrace the principles of a circular economy by designing or utilising products that are recyclable, repairable, and durable. Showcase how they are recycled through the economy and the benefits of this new and secondary raw material use will benefit the economy.
Incorporate New Technologies ~ Embrace and adopt new innovative technologies that can help reduce environmental impact, improve efficiency, and lower costs.
Financial Rigour
Financial Forecasting ~ Creating a realistic forecast and budget that outlines your revenue including proposal and quotes and expected expenses. Monitor and adjust regularly to ensure you are forecasting and managing cashflow.
Diversification ~ Diversify your income streams to reduce reliance on a single source. Invest in different assets to spread risk and enhance long-term financial stability.
Emergency Fund ~ Establish an emergency fund to cover unexpected expenses and mitigate financial shocks. Aim to save 3 to 6 months of business expenses.
Debt Management ~ Manage and reduce high-interest debt to improve financial flexibility. Prioritise paying off debts strategically, starting with high-interest loans.
Cost Control ~ Evaluate and control your expenses, identifying areas where you can cut costs and re-negotiate with service providers to get better deals.
Insurance ~ Ensure you have adequate insurance coverage to protect against unforeseen events. Regularly review and update your insurance policies based on changing needs in your business and the market. Don’t accept annual premium adjustments, also called ‘lazy increase’.
Tax Efficiency ~ Optimise your tax strategy with your Accountant by taking advantage of tax credits, deductions, and exemptions.
Environment Prosperity
Reduce, Reuse, Recycle ~ Implement waste reduction and recycling programs to minimize the environmental impact of your operations.
Energy Efficiency ~ Invest in energy-efficient technologies and practices to reduce energy consumption and lower greenhouse gas emissions.
Renewable Energy ~ Transition to renewable energy sources, such as solar or wind power, to reduce reliance on fossil fuels.
Water Consumption ~ Water is one our most essential and purest needs of life. It’s also essential to many businesses particularly manufacturing and
Carbon Emission ~ Understanding the level of carbon emission your business generates and where will enable you to see which areas can be reviewed to consider alternative methods that maintain product or service excellence but reduces the carbon footprint.
Carbon Offset ~ Many businesses in addition to reducing their footprint are also offsetting their carbon for crops. Their remaining carbon footprint are offset in partnering with farmers to plant crops.
Social Sustainability
Employee Engagement and Well-being
Workplace Sustainability ~ Create a sustainable workplace culture that encourages employees to adopt eco-friendly practices at work and share ideas or innovative designs.
Employee Benefits ~ Encouraging wellness initiatives, hybrid and flexible work arrangements, green space working environments to promote and encourage sustainable mindset and a healthier work-life balance.
Community and Social Impact
Community Involvement ~ Involve your business in community projects that can become a natural extension of your business. Charitable contributions can also support the progress and sustainability of vital community organisations and groups.
Social Impacts ~ Invest in community and volunteer programs to positively impact the communities in which you operate. Your sustainability in business doesn’t need to remain in the footprint of your business. Your local employment, supply of products and services, and involvement in the community will all positively contribute to the social fabric of your local community.
Customer Awareness and Engagement
Customer Education ~ Educate your customers about the economic, environmental and social considerations of your business and how your products and services will also contribute to the sustainability of the community and Australia.
Green Marketing ~ Use eco-friendly marketing practices and labels to attract environmentally conscious consumers, suppliers, and partners. Spread the word!
We hope these sustainable business strategies have the potential to enhance the sustainability of your business into its future!
How can we help you
Seeing your business soar in its future is important to us. If a sustainable business is in your lens, Follow Us on social media, and Contact Us to arrange a consult with our Business Sustainability Experts.
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Disclaimer - This information is designed to be general business and employment information. You should seek professional advice that is based on your business circumstances prior to its use. Purchasing and/or utilising any of our templates, tools, agreements, documents does not constitute professional advice including legal advice.