7 ways to make your business sustainable
Sustainability. We hear and see this word everywhere - sustainable business, sustainable fashion, sustainable packaging, and delivery. Yet do we understand its real meaning? And can we claim our business sustainable? Let's dive in and make it clear.
What is sustainability in business?
Sustainability in business refers to conducting operations without having an adverse effect on the environment, the local community, or society at large.
Business sustainability often targets two primary categories:
a) business's impact on the environment
b) the social impact of business.
Making a difference in at least one of those areas is the aim of a sustainable company plan. On the contrary, companies that don't take accountability risk creating problems, including environmental deterioration, inequality, and social injustice.
Sustainable businesses consider a range of environmental, economic, and social factors when making decisions regarding their operations. These companies keep an eye on the effects of their actions to prevent short-term gains from becoming long-term liabilities.
Business Sustainability Examples
Although many prosperous businesses engage in sustainable principles, no two approaches are identical.
Due to their connections to overarching corporate objectives and core values, sustainable business strategies differ in each organisation. Depending on the company's desired positioning, they can include various steps and campaigns.
Why is sustainability important?
Sustainability may not only reduce global problems but also promote economic success. Environmental, social, and governance (ESG) measures are increasingly being used by investors to assess an organisation's ethical effect and sustainability standards. Investors look at things including a company's water use, carbon footprint, community involvement, and board diversity.
According to researches conducted by different organisations, businesses with strong ESG ratings have reduced loan and equity costs, and sustainability activities can enhance financial performance while winning over the public. According to McKinsey, a company's aims, missions, or values, reputation-building, customer satisfaction, meeting client overall expectations, and the creation of new growth prospects were the most powerful drivers of adopting a sustainable mentality starting from 2017. The intersection of social and environmental advancement with a commercial gain is referred to as "shared value opportunity." In other words, "doing good" can directly affect how well your business "does." It is obvious why many businesses have adopted these methods given this option.?
It's essential to mention that buyers also find it important - to purchase from responsible stores.
According to the statistics we borrowed from the eMarketer, most of the buyers care. Let them be your brand's advocates by addressing their needs and wishes.
How to become sustainable??
Although adopting sustainability does not necessitate a complete overhaul of your company, it does call for changes to be made to your current procedures. We've compiled a list of numerous steps you may take right away to implement improvements in your organisation. Learn how to integrate your strategy and mission to produce shared value by using these seven steps to make your firm more sustainable.
1. Sell more "green" products
While it's possible that your company doesn't make entirely sustainable goods, you might be able to work with manufacturers or suppliers who do. Doing so may gradually introduce sustainable products and services while demonstrating your efforts to your clients.
2. Recycle and reduce waste
Waste reduction is one of the main steps toward true sustainability. Plan your waste reduction thoroughly. Think about how you can reduce amounts of it and start recycling. Several countries offer particular privileges to businesses that act responsibly, so recycling will make your company sustainable and probably help you save some money.?
This is only one of the existing effective techniques to demonstrate corporate social responsibility. Recycling not only lessens our reliance on non-renewable resources but also saves energy because manufacturing items from recycled materials use significantly less power than manufacturing products from raw materials.
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3. Switch to environmentally friendly shipping and packaging
In e-commerce, shipping cannot be avoided, but there are easy solutions to reduce the environmental impact. Use returnable and reusable delivery packaging instead.
Compared to single-use packaging, the straightforward approach lowers waste and saves up to 80% of CO2 emissions. After receiving their order, customers are urged to place the empty, recyclable packing in a mailbox. You can switch to reusable bags that consumers can use for returns or just to carry their own items, as many major brands do.
4. Reduce the need for returns
Returns and exchanges have a significant impact on shipping costs, packaging waste, and transportation emissions, in addition to negatively impacting businesses' bottom lines.
As per research results (NRF), the average return rate in 2021 in the e-commerce industry has reached 16,6%, which is quite an increase compared to the 10,6% in 2020. So, to keep your own return level as low as possible, you should consider the following tactics:
5. Take into account new sustainability trends
Rental, pre-owned resale, free repairs, and many more - are the actual sustainability trends in the e-commerce industry. Find some for your business and implement them as soon as possible, not just to look responsible but to actually be a supporter of a sustainable movement.?
6. Speak about your sustainability efforts?
To ensure that your customers can readily comprehend your beliefs when it comes to sustainability in e-commerce, it's crucial to properly define your sustainability goals and the activities you are taking to attain them. Do not be quiet about your responsible actions. Speak up!
7. Do good things
As we've already mentioned, sustainability may be used to protect people as well as the environment. If there is a social issue that mainly concerns you, raise awareness about it and make an effort to improve conditions there, even if you are not able to completely resolve it.
And once again, the complete checklist of possible actions:
Sustainable e-commerce should be more than just a few green products and a special page on your website; it also involves how you conduct business. Set targets to address areas where you can improve after evaluating your carbon and chemical footprints. Work with your sellers and product suppliers to integrate your company processes with your sustainability criteria.
What can go wrong if I claim my company is sustainable?
Sustainability can be misunderstood by both sides - a business and a consumer. To avoid it, you need to know what it is and what are the main indicators of socially and environmentally responsible companies. It would also help if you educated your clientele on this matter and told them more about what your firm does in this area.??
Make sure you never cheat because the consumer is astute and will never keep silent in case of suspecting a deception, especially in eco-related questions. This subject is way too important at the present moment across all world.?
There were several cases in the e-commerce market when huge companies claimed their business was sustainable yet were suspected of providing false information and misleading their customers. Actually, some of those cases ended up being investigated. Some investigations are still in progress.?
In the UK, there is an organisation regulating such a type of issues - the British Competition and Markets Authority(CMA). Manipulation with sustainability can be called "Greenwashing," which is not good to be involved in, nor from the legal point of view or reputational.
"Should we find companies are using misleading eco claims, we won't hesitate to take enforcement action – through the courts if necessary," Sarah Cardell, CMA interim chief executive. - "People who want to 'buy green' should be able to do so confident that they aren't being misled."?
Summary
It is not hard to "go green." It is easy to recycle. It is respected to be sustainable. Moreover, it brings value not only to the environment and society but also to your own business. Following this lifestyle and philosophy or not is your choice, and buying from responsible sellers is the choice of the maturing generations, the soon-to-be main "buying force" of the planet.?
We think that adopting sustainable practises to your digital business will make it possible and open up previously unimaginable development prospects. Future generations, as well as the merchants that are prepared to lead the way into a new era of sustainable e-commerce business practises will undoubtedly profit from it.