Introduction
Sustainability is no longer a niche interest but is quickly becoming a license to operate. Companies that fail to adopt sustainable practices risk losing out on market share, facing regulatory pressure, and damaging their reputation. Creating a good sustainability strategy can be a challenging task for small and medium-sized enterprises (SMEs), often because of a lack of resources, expertise or capital. In this knowledge article we describe the main building blocks of a sound sustainability strategy.
Summary
A sustainability strategy is a roadmap for businesses to reduce their environmental impact, improve their social responsibility, and create a more sustainable future.This strategy should be ambitious but achievable, measurable, and transparent.The strategy consists of five central elements: measuring your footprint, target setting, reduction, funding climate projects and communication.
Why your company should have a sustainability strategy
Before we dive into the ‘How’, let’s look at the ‘Why’ of sustainability action. It has become clear in recent years that sustainability is not just a buzzword anymore; it's an essential element for SMEs to thrive in today's interconnected and environmentally conscious world. By embracing sustainability practices, SMEs can enhance their brand reputation, attract and retain top talent, reduce operating costs, and gain a competitive edge in the market. As the world transitions towards a more sustainable future, SMEs that prioritize sustainability will be well-positioned to succeed and lead the way towards a sustainable, more equitable future. To understand better why your company should have a sustainability strategy you can read this knowledge article.
What makes a sustainability strategy sound?
A sound sustainability strategy is not just a checklist of eco-friendly initiatives; it's a comprehensive roadmap that guides a company towards a more environmentally responsible and sustainable future. It's about aligning business operations with the planet's well-being.
At the heart of a sound sustainability strategy lies realistic ambition – the setting of clear and ambitious goals that stretch beyond compliance or token gestures. These goals should not only align with the company's mission and values but also reflect a genuine commitment to making a positive impact.
Measurability is the backbone of a successful sustainability strategy. It's about quantifying progress, tracking tangible achievements, and evaluating the effectiveness of implemented initiatives. Specific metrics and targets provide clear benchmarks for measuring success, allowing businesses to identify areas of improvement and make informed decisions.
Transparency should not just be a buzzword; it should be one of the fundamental pillars of your sustainability strategy. By openly communicating the strategy to all stakeholders – employees, customers, investors, and the community – businesses foster trust, build credibility, and demonstrate their commitment to environmental responsibility. Transparency fosters accountability and ensures that sustainability initiatives are not just lip service but rather a fundamental part of the company's DNA.
Adaptability is the quality that ensures a sustainability strategy remains relevant and up to date as new legislation and non-regulatory best practices develop. The business landscape, environmental challenges, and stakeholder expectations evolve constantly, requiring strategies to be flexible and adaptable to new realities. Regular review and updates keep the strategy aligned with the company's evolving goals and the ever-changing context in which it operates.
The five building blocks of a sound strategy
A sound sustainability strategy consists of five building blocks. It is important to note that sustainaiblity is not a tick-the-box exercise or a step-by-step process. Rather it is a mindset in which the building blocks should be seen as corresponding and reinforcing elements. Through this, the most benefits will be reaped (both from an impact and business perspective). Below you can find an explanation of the value of each building block.
- Measure your footprint: “You can't improve what you don't measure.” The first step is to understand your company’s current environmental impact. This involves conducting an assessment of your company Scope 1-2-3 emissions and overall company footprint on the planet. All your company actions should be expressed in CO2 values to be able to steer on sustainability goals. When you have a clear view and can quantify your current situation, you can set targets towards the future.
- Set targets: once you know your baseline, you can set ambitious but achievable targets for reducing your environmental impact. These targets should be SMART: specific, measurable, achievable, relevant, and time-bound. Creating a clear reduction plan with interim targets as you work towards Net Zero emissions is crucial. Setting targets gives a framework for decision making and it enables companies to commit to specific actions and timelines.
- Implement solutions and work on reduction: there are many ways to reduce your environmental impact. Some of the most common strategies include:
- Switching to renewable energy sources
- Reducing energy consumption
- Improving waste management
- Promoting sustainable transportation
- Check out this Knowledge Article containing more quick wins
Once you have implemented your sustainability initiatives, it is important to track your progress and measure your impact. This will help you to identify areas where you are succeeding and areas where you need to make improvements.
- Fund climate projects: Next to reducing emissions, funding climate positive projects (e.g. tree planting) is a great way to take responsibility for your companies’ (residual) emissions and to pay for damage that is created today. As some emissions cannot be reduced yet, supporting climate projects is a great way to of offset unavoidable emissions and make impact on local communities and the environment. Learn more about the projects Regreener supports on this page.
- Communicate and inspire: ‘Awareness is the first step towards change’. Informing stakeholders about your (in)actions is crucial. Open communication to all relevant stakeholders creates accountability and will inspire others to join in on climate action. Next to that it can provide competitive advantage, increase trustworthiness and can position your organization as future-proof.
Conclusion
A sound sustainability strategy is an investment in the future of your business. By taking steps to reduce your environmental impact, improve your social responsibility, and create a more sustainable future, you can also enhance your brand reputation, attract and retain top talent and access new markets. Sustainability is per definition not a ‘check-the-box’ exercise. Rather it is a process of continuous learning and improvement. As best practices and tools evolve – your organization should too.
