Sustainable Business Practices in Germany and the Midwest

As society adapts to changing environmental conditions, businesses are also looking to make these changes. In this article, we will discuss what it means to practice sustainable business and what businesses in Germany and the Midwestern United States are doing to be more environmentally friendly.?

What Does it Mean to Practice Sustainable Business?:?

Sustainability in business is a company’s plan to minimize harsh environmental and social impacts resulting from business operations. According to IBM , 71% of employees and those seeking employment say that environmentally friendly companies are more attractive employers.?

Corporate social responsibility (CSR) is one way in which companies are held responsible for their environmental impacts, and this can span a variety of topics. One area CSR can tackle is sustainability efforts. While Germany adopted an official CSR Action Plan in 2010, the United States does not have a mandated practice Instead, CSR initiatives are the responsibility of individual businesses to uphold if they wish.?

Sustainable Business Practices in Germany:?

Sustainability is a top priority for many European countries. In Germany, many laws and policies have been created to ensure that businesses aren’t harming the environment. The German Sustainability Code is just one example: Its goal is to motivate companies to prioritize sustainable business practices, especially during the supply and production stages. The Code was first introduced in 2010 and has about 15,000 companies to date that are required to report on their sustainable business practices.??

The Code is made of 20 sustainable performance indicators which are sorted into four key areas – strategy, process management, environment, and society. The German Sustainability Code allows companies to be transparent about their operations and build trust with consumers, investors, and stakeholders.??

Besides the German Sustainability Code, German businesses have been taking action to help the environment. In 2022, 76% of German businesses increased investments in sustainability measures. Businesses in Germany are reducing air travel, using more sustainable materials, sourcing renewable energy, and increasing energy efficiency. However, climate change continues to be a top issue that German businesses are concerned about. Germany is aiming to be greenhouse gas neutral by 2045, which includes businesses doing their part to help the cause.?

Sustainable Business Practices in the Midwestern United States:?

Just like in Germany, many Midwestern US States have created policies or state-wide programs regarding sustainable business practices.??

In Wisconsin, the Green Tier program works with the Wisconsin Department of Natural Resources to encourage businesses to improve their environmental impact. Each program participant utilizes an Environmental Management System to identify their impact on the environment and operate more efficiently. Green Tier can help businesses save time, reduce costs, and adapt to market demands.?

In Michigan, sustainability measures are being met in businesses through circular economy practices and climate leadership. The Michigan Sustainable Business Forum provides resources to support manufacturers, small business, and institutions throughout supply chains to meet climate and circularity goals. The business forum also has many working groups focused on climate leadership that is dedicated to eliminating greenhouse gas emissions produced by Michigan businesses.?

The Illinois Green Business Association is helping small businesses implement new sustainability practices to increase profitability. The organization helps improve sustainability across six categories – energy, pollution prevention, solid waste, transportation, water, and community. A business may receive certification in any of these categories once they have successfully implemented green practices that meet or exceed the requirements. Certifications help businesses be more transparent to customers and the community.??

Conclusion:?

Ultimately, including sustainable initiatives in your business practice can help attract customers, employees, and investors as well as help offset your company’s carbon footprint.?

Check out our many delegation trips that cover environmental topics similar to sustainable business practices. Our next trip is to New York and Chicago on October 21-25 and will cover topics such as smart city solutions, sustainable mobility, public transport, and AI. Keep in touch with us by subscribing to GACC Midwest's newsletters for updates on events and German American business news.