TL;DR Developing and implementing a sustainability strategy is easier to integrate into your business operations than you might think. Such a strategy provides both guidance and direction for your company's sustainability process and support for daily decision-making.
In this guide, we dive into the process of setting up an effective sustainability strategy tailored to your needs as an SME.
Introduction to sustainability strategy
We get it. Life is busy, demanding, and chaotic. At work, we’re constantly juggling multiple tasks. Developing and implementing your sustainability strategy can easily fall by the wayside. What doesn’t help is that “sustainability” often feels like an abstract and complex topic.
Maybe you don’t know where to start, and as an SME, you feel overwhelmed; your CO2 strategy ends up on the back burner. Understandable, but also unfortunate.
In a changing world and market dynamics, sustainable business practices are becoming increasingly important to stay competitive.
Sustainable business practices are becoming increasingly important
There are several key factors that make sustainability in your business operations more critical than ever:
Competitive position
B2C: An increasing number of people see sustainability as a core factor in their purchasing decisions. This trend will only grow as the impacts of climate change become more visible.
B2B: (Large) companies are paying more attention to sustainability in their supply chains as part of their procurement policies (Scope 3). This trend is further driven by mandatory sustainability reporting requirements, such as the Corporate Sustainability Reporting Directive (CSRD), which will (in)directly affect SMEs.
Want to learn more about the impact of the CSRD on SMEs? Read our knowledge blog on the CSRD introduction.
Cost savings
You can make significant savings through energy efficiency, smarter resource use, and reduced waste.
These savings are likely to increase further. Fossil fuels are becoming more expensive, and awareness of environmental damage is growing. The PBL estimates this damage in the Netherlands at €31 billion per year. This will likely lead to stricter regulations to reduce environmental harm.
Enhanced position in the labor market
Given the aging workforce and the resulting shortage, societal impact is becoming an increasingly important factor in attracting new talent.
Our vision on sustainability strategies for SMEs
While SMEs are smaller organizations than large corporates, this doesn’t have to be a disadvantage when it comes to sustainability. Most SMEs are more flexible, less bureaucratic, and thus better positioned to adapt to changing norms and develop and implement strategies on relatively short notice. A sustainability strategy can be a key driver for cost savings and a stronger market position for SMEs.
Moreover, as an SME, actively contributing to environmentally responsible practices allows you to play a critical role in tackling climate change and environmental degradation, setting an example for the broader business community and contributing to a healthier planet for future generations.
A well-crafted sustainability strategy prepares your SME for the future.
The five building blocks of a good sustainability strategy
A successful sustainability strategy is based on several building blocks. These principles reinforce each other and help optimize both your impact and business results. Below is a concise explanation of these pillars:
1. Measure your carbon footprint
Start by measuring your carbon footprint (Scope 1, 2, and 3). Improvement begins with insight.
2. Set CO2 reduction goals
Define ambitious but achievable SMART goals (Specific, Measurable, Achievable, Relevant, Time-bound) and work with a clear reduction plan towards net-zero emissions.
3. Reduce your CO2 emissions with reduction measures
Implement practical solutions such as:
Renewable energy
More efficient energy use
Circular procurement policies
Waste reduction
Sustainable transport and mobility policies
4. Contribute to climate projects
Supporting climate projects is a great way to take responsibility for unavoidable emissions and make a positive contribution to our planet and society.
Click here to learn more about Regreener’s climate projects.
5. Communicate, report and inspire
Share your approach and results with stakeholders. Transparency builds trust, inspires others, and strengthens your position as a future-oriented organization. These building blocks form a solid foundation for making your business operations more sustainable.
You can translate these principles into action by developing a CO2 footprint strategy. After all, sustainability ultimately revolves around reducing your carbon footprint (Scope 1, 2, and 3).
The CO2 footprint strategy is the foundation of your sustainability strategy
Sustainable business practices are centered on reducing your carbon footprint (Scope 1, 2, and 3). That’s why integrating a plan to reduce your carbon footprint is essential to your sustainability strategy. Every successful sustainability strategy starts with a CO2 measurement.
In this knowledge article, we explain how a CO2 measurement works.
Below, we outline how to integrate your CO2 footprint strategy into Pillar 2 (Set CO2 reduction goals) and Pillar 3 (Reduce your CO2 emissions with reduction measures) of your sustainability strategy.
Define CO2 reduction goals based on costs and impact
Once you have insight into your carbon footprint, you can set realistic and achievable goals for reducing it. We recommend evaluating the costs and potential savings of various CO2 reduction measures. This analysis should consider the required investment, recurring costs, and expected reduction of greenhouse gas emissions for each measure.
By comparing the costs and benefits of different options, you can make well-informed choices for the most effective and affordable ways to reduce your carbon footprint.
We suggest distinguishing between “quick wins”—measures that can be implemented relatively easily and without significant costs—and strategic, structural choices, such as greening your fleet, which require greater time and cost investments.
Curious about these “quick wins”? Read this knowledge article.
Prioritize reduction measures
Once you understand the costs and impact of potential measures, you can prioritize them based on feasibility, effectiveness, and alignment with business goals. We recommend basing the prioritization process on the following factors:
Cost-effectiveness: Choose measures that deliver the greatest CO2 reduction per invested euro.
Feasibility: Assess whether the measure is technically, operationally, and logistically feasible within a specific timeline.
Impact: Consider the total impact on the carbon footprint and whether it aligns with your CO2 reduction goals.
Alignment with business goals: Prioritize measures that align with the overall business strategy.
It is important to keep in mind that a proper prioritization of reduction measures involves a mix of quick wins and more structural choices.
Engage your organization in decision-making
Finally, it’s important to involve the entire organization in the decision-making process at this stage. Sustainability is about more than numbers; it’s about cultural change. Allow employees to participate in prioritizing reduction measures. Once reduction goals and associated measures are determined, create room for initiative, share updates, and acknowledge contributions. This fosters collaboration, strengthens the company culture, and increases engagement with the sustainability strategy.
Develop an implementation plan for CO2 reduction
A CO2 reduction strategy requires more than just goals; you need a clear plan to turn those goals into action. This plan should outline the steps to effectively integrate the measures into your operations.
Divide the plan into phases with timelines and assigned responsibilities. Set SMART milestones to monitor progress and measure the effectiveness of the measures. These milestones help assess performance and make adjustments as needed, ensuring the process remains flexible and focused.
Is your organization struggling to turn goals into action? Consider implementing an internal carbon price.
Conclusion
A sustainability strategy, focused on CO2 reduction, can be the key to future-proofing your business operations.
We recommend basing your sustainability strategy on the process described in this article. Start with a CO2 measurement, then set CO2 reduction goals, prioritize reduction measures, develop a CO2 offset plan, support climate projects for remaining emissions, communicate your progress transparently, and inspire others.
Need help integrating sustainability into your business? Feel free to get in contact!
