Every business must comply with various environmental legislation, but many businesses are going beyond this for both moral reasons and to jumpstart their success. Climate change is a hot topic, as it should be – it will affect every single aspect of life and work if something is not done about it.
Change is coming and your company needs to be ready with a strategy of how to cope and even improve business. And no – delaying is not a strategy. Businesses can benefit most by taking action to anticipate climate-related risks like changing consumer preferences, price volatility, and increasing government regulations. Sustainability can be pursued in a way that creates value for your business.
According to the Center for Climate and Energy Solutions, pursuing sustainability in your business can cut costs; improve efficiency; ensure you’re complying with the law; boost your reputation among customers, suppliers, investors, and the local community; increase employee morale; attract, keep, and motivate staff; and increase business opportunities by meeting customer demand for sustainable business practices.
Here are some ways your company can get ahead by pursuing sustainability:
Transition to renewable power sources
Energy efficiency is a key climate change strategy – when many companies calculate their carbon footprint, their energy consumption typically accounts for a majority of their measurable emissions impact.
Your strategy can be unique to your company and encompass things like your supply chain, products and services, and internal operations. However, according to the Center for Climate and Energy Solutions, strategies are most effective when they are integral to strategic planning and risk assessment, proven by leadership providing sustained support and when the company has SMART (specific, measurable, accountable, realistic, and time-bound) energy efficient goals.
Can your company take the global EP 100 initiative pledge? Companies that do so pledge to double their energy productivity, which could save more than $2 trillion by 2020 globally.
Reduce your travel and allow telecommuting
Air travel, in particular, is terrible for the environment – airplanes emit their fuel directly into the upper atmosphere where they linger and cause damage. Before you send a team member to a remote office for a meeting, consider whether the trip is really necessary or if the business could be conducted virtually.
If any of your employees drive to work, try subsidising a bus or transportation card to reduce their impact on the way to work.
And beyond that, allow your employees to telecommute at times when their presence in the office is not vital. By doing this you can help reduce traffic and emissions that would have been spent transporting them to the office.
Adopt climate-related targets
Setting Greenhouse Gas reduction and energy efficiency targets can help improve your bottom line and increase innovation within your company. These climate-friendly investments will pay off as the world begins to adjust to new regulations and restrictions. By taking initiative before they are forced on you, you can help shape the policies governments put in place to ensure they benefit your business.
The type of target your company chooses depends on the products or services you sell, business model, production methods, etc. To guide your business in setting these targets, begin by selecting a few focus areas (three is a good number) and establish measurable goals. Publicise your goals internally and externally to motivate and hold your business accountable. Later, evaluate their success by running cost-benefit analyses. To ensure their continued success, try creating incentives for employees and suppliers.
Adopt internal carbon pricing
Internal carbon pricing assigns a price to carbon emissions that can then be included in ‘costs’ for the company and included in cost-benefit analyses. Internal carbon pricing provides an incentive to shift investments to low-carbon alternatives. It also helps achieve Greenhouse Gas reduction and energy efficiency targets and gain a competitive edge.
Redesign products to make them more sustainable
This might sound like more work than it’s worth, but this kind of action can pay off in the long-run. There is a large consumer demand currently for environmentally friendly products and services. Making your products and services more sustainable could give you a competitive edge when the consumer is choosing between you and a competitor.
I hope this helps you and your business! If you need any legal advice, you can book a call and with our legal team and we will guide you through every stage of your legal needs.