While going green isn’t as onerous as it’s made out to be, businesses should be aware that being environmentally friendly requires a little more work than slapping an eco-label on some products. On closer inspection it becomes clear that very few businesses have actually taken concrete measures to ensure their environmental impact is minimized. Nowhere is this more evident in the number of businesses that choose to commit to going carbon-neutral in their supply chains.
Sadly, the misconception that the emissions of small businesses don’t matter remains stubbornly prevalent. In one survey, 11.1 per cent of respondents said they didn’t buy carbon offsets in part because they thought that “carbon offsets at the scale of my home or business are insignificant and simply don’t matter”.
The fact is when SMEs make up 90 per cent of business worldwide and affect the livelihoods of over two billion people, reaching net zero becomes a matter of urgency.
Every brand, big or small, plays a pivotal role in the grander scheme of saving the planet. According to The Powershop report which was prepared in conjunction with data partner Geografia, Australia’s SMEs collectively emit about 146.5 million tonnes of the nation’s carbon emissions annually. This includes the nation’s 2.4 million small businesses to which if small changes were made could reduce emissions equivalent to taking 15 million cars off the road.
The consumer perspective on this is clear. A Nielsen survey found that 66 per cent of global consumers are prepared to pay more for sustainable products and they expect businesses to do no harm to the environment as the bare minimum. Businesses that go above and beyond earn serious credentials with Gen Z and Millennial consumers in particular as they exert influence over the future direction of the market.
Practical steps for small businesses
Given their limited resources in terms of budget and manpower, how can small businesses ensure their supply chains are carbon-neutral? Small businesses may be surprised to find they are already taking measures to reach net zero and that being more carbon neutral is aligned to better cost savings and efficiency.
Here are some key steps to get started:
- Measure your carbon footprint. Before making any changes, businesses must first understand their current environmental impact. Services like Trace Australia and Carbon Positive Australia can help in evaluating the total carbon footprint of operations from manufacturing to delivery.
- Find areas for reduction. Once businesses have a good understanding of their carbon footprint they are better placed to pinpoint areas to reduce emissions. For small businesses even simple adjustments can result in significant changes. Reducing travel for instance saves on emissions and time. In practical terms, it could mean choosing to take meetings via Zoom or working from home more often. Cutting down on waste is another obvious area – reduce single-use plastics in the office and only print documents if strictly necessary. Opt for more energy-efficient light bulbs to save electricity and consider cutting down on office space if your business doesn’t need it.
- Offset remaining emissions. After implementing reduction strategies, whatever can’t be reduced can then be offset. There are a number of certified climate programs ranging from reforestation to conservation and renewable energy that businesses can invest in.
Small businesses with their agility and close ties to their communities are uniquely placed to lead the charge towards a more sustainable future. By taking action today, these forward-thinking businesses place themselves in a stronger position to capitalise on tomorrow’s opportunities – and they’re helping to save the environment along the way too.
