The Importance of Environmental Business

2. Sustainability is an increasingly important issue for many people, especially in the
business world. Climate change continues to affect our lives as well as the fate of all
other species around the planet. For business owners, leaders, and administrators,
sustainable business practices are becoming imperatives. According to NASA, it’s
more than 95% likely that human activity is causing the planet to get warmer.
Human industry is a big part of the climate change picture because of its reliance
on land, resources, fossil fuels, and non-stop production and consumption.
Making businesses more sustainable starts with being aware of the issue at hand
and understanding just how important it is to make changes — both for the
business and the planet. The intent of this resource is to help business owners,
administrators, and leaders make their organizations more environmentally aware.
Here, you’ll find a working definition of sustainability in business, an explanation of
its importance, identification of the key players, a discussion of benefits and
challenges, as well as information on how to improve sustainability in business.
This project has been funded with support from the European
Commission. This document and its contents reflect the views only of
the authors, and the Commission cannot be held responsible for any
use which may be made of the information contained therein.

3. What Does It Mean?
Business sustainability is the practice of operating a
business without impacting the environment negatively. A
green business functions in the best interests of the local
and global environment, meaning it supports the
community and economy dependent on a healthy planet.
An environmentally aware business considers more than
just profits — it considers its impact on society and the
environment. Such a business is sustainable because it
contributes to the health of the structure within which it
operates, thereby helping construct an environment in
which the business can thrive.
Why Is Sustainability Important?
The “Great Pacific Garbage Patch” is illustrative of why it is
extremely important for businesses to prioritize
sustainability. According to the scientific journal
Environmental Sustainability, an island of plastic twice the
size of Texas State (approximately 1.6 million square
kilometers) is floating in the Pacific Ocean. These plastic
harms marine life, and microplastics in seafood can end up in
humans. This plastic would not exist if it were not for
companies that use it to create and package products.
Simply put, if businesses do not act responsibly as members
of the global community, the majority of many species will
not survive past the 21st century.

4. The following statistics illustrate where the business world is when it
comes to sustainability:
Consumer Perception
•According to Cone Communications’ corporate social responsibility
study, 63% of the consumers want corporations to drive social and
environmental change in the absence of government action.
•87% of the consumers will make a purchase because a company
advocated for an issue they care about.
•76% of the consumers expect companies to take action against
climate change.
•73% of the consumers would stop purchasing from a company that
doesn’t care about climate change.

5. Business Perception
•According to the 2018 BSR/Globescan survey of business leaders in
charge of sustainability and corporate social responsibility, respondents
identified ethics and integrity as the No. 1 reason for pursuing business
sustainability.
•75% of corporate sustainability professionals say that businesses need
to get better at including sustainability into business strategy to
address global mega-trends.
• 64% of business leaders respondents said sustainability needs
to influence core business activities such as strategy and value
creation; 84% of European respondents and 89% of respondents
everywhere else agreed.
•Less than 33% of respondents said their businesses are actually
engaging with sustainable strategic planning.

6. Business Impact
•According to a report from The New Climate Economy, 95% of plastic
packaging — the equivalent of $120 billion annually — is wasted after the
first use, and microplastics have been found in 114 aquatic species.
•Over 140 million people will be displaced from their homes by 2050 if
business continues as usual.
•Industries must drop carbon emissions by 40% by 2060 to stop the planet
from warming over two degrees Celsius.
•In combination with action from governments and other stakeholders,
businesses that take action on climate change by adopting green policies,
technologies, and strategies for growth could realize a total of $26 trillion in
economic benefits.
The case for sustainability is strong. To become sustainable, your business
must engage everyone who can contribute.

7. Every individual can take steps to live and work more sustainably, but when it comes
to improving sustainability in business, there are some people who are in a unique
position to effect change.
Business Owners and Organizational Leaders
Effecting change throughout an organization takes organizational leadership training
and skills to make effective top-down decisions. Business owners and leaders who
possess organizational skills have the savoir faire to make strategic sustainability
decisions that benefit the business, its employees, its customers, and the planet.
Leaders are perhaps the most important link in the chain. Owners and executives
have the intellectual acumen to identify the most effective sustainability strategy
and initiatives, as well as the power to change policy and spur innovation.

8. Business Administrators, Managers, and Supervisors
Administrators, managers, and supervisors have unique insights into the day-to-day
operations of a business. The future of business administration requires preparation to
solve complex problems via unique perspectives, and the combination of skill and
expertise to think of creative sustainability solutions. Admins, managers, and supervisors
can provide valuable insights; because of their more hands-on role, they have a different
perspective and understanding of how to improve business sustainability.
Human Resource Professionals
In a survey of 148 CEOs from the world’s largest and highest-profile companies, every
respondent said human resources practices are essential to building and maintaining
sustainable businesses. The HR department at your organization can play an important
role in the development, creation, and implementation of company-wide sustainability
policies. They can help ingrain these policies into the company culture and create a
lasting shift in your business.

9. It’s important to create a company culture that reflects your values and makes employees
comfortable enough to share their ideas, including those regarding sustainability. The HR team
can act as a cultural ambassador, helping employees and new recruits feel recognized and valued
as key drivers in efforts toward sustainability.
Employees
Sustainability initiatives don’t always have to come from the top down; employees may provide
valuable contributions too. For example, according to the Stanford Social Innovation Review,
employees at a Unilever tea factory in England saved the company €47,500 and reduced the
waste of 9.3 tons of paper by suggesting the company change the size of paper tea bags.
Because these employees were working with the product directly, they knew exactly what could
be improved.
Encourage employees to speak up and share their thoughts about how your business can
become more sustainable. The results could contribute to both sustainability and profitability.
Moreover, the Stanford Social Innovation Review reports that this can improve “employee
retention, productivity, and overall engagement.”

10. Sustainability in business isn’t just good for the environment or society at large — it’s also good for the
business itself. Here are just a few of the many benefits of operating a more sustainable business:
Reduces Business Costs
“Greening” your business takes an initial investment, but, over time, you’ll save money by prioritizing
sustainability. A 2011 McKinsey survey on the business of sustainability found that 33% of businesses were
integrating sustainable practices to improve operational efficiency and cut costs — resulting in a 19%
increase from the previous year. Over the course of 10 years, clients of the managed service provider
Elytus saved over $11 million through sustainable waste management and transparency.
You can reduce your business costs by going green. For instance, using more efficient lighting or creatively
reusing existing materials will save money. Although it takes an upfront investment, converting to solar
energy pays off the average commercial property owner will save about $500 per month on electricity,
which equals savings of $587,377 over the life of the solar power system. Most businesses pay off the cost
of panels in five to seven years.
The federal government even offers tax credits, rebates, and savings for going green. Ultimately, the more
sustainable your business becomes, the less you’ll spend on energy and materials.

11. Improves Business’ Reputation
Reputation management in business is about establishing a good image by aligning messages with actions.
Among the most reputable companies for corporate social responsibility, Lego comes in at No. 3 because
of its decision to make Legos from plant-based sources. After it made the announcement, Lego
immediately followed through with products produced from leaves and sugarcane. The Danish toy
company plans to use sustainable materials for all of its core products and packaging by 2030. As a result,
the company’s reputation has skyrocketed.
People view sustainability as a plus, and companies with green values are eager to showcase them
because of that fact. Going green shows the world you care about more than just making money.
Provides Competitive Advantage
S&P 500 companies with sustainability baked into their strategy perform better than those that do not:
they see an 18% higher ROI because they’re managing and planning for climate change. According to
Jeffrey Hollender, professor of sustainability at NYU Stern, “You will perform better financially by doing
things like having a great sustainability program.” Researchers from Harvard Business Review agree:
“We’ve been studying the sustainability initiatives of 30 large corporations for some time. Our research
shows that sustainability is a mother lode of organizational and technological innovations that yield both
bottom-line and top-line returns.”

12. Increases Bottom Line
You can earn more money and boost your bottom line by making your business more sustainable. Reduced
business costs, more innovative strategies, an improved reputation, and more new customers who value
sustainability all work to increase the amount of money sustainable businesses earn.
Challenges to Improving Sustainability in Business
Though sustainability has many positive impacts on business, it can also be challenging to actually
implement these changes. Here are some of the biggest barriers that businesses, particularly small ones,
face when trying to become more sustainable:
Lack of Resources
Some businesses do not think they have the needed resources — namely, time and money — to properly
and effectively implement sustainability strategies. However, you do not have to become a green business
all at once. Solar panels, a LEED certification for your building, and sustainably sourced materials are not
the only measures a business can pursue. You can start small and make affordable changes, which is much
better than doing nothing at all (see “How to Make Your Business More Sustainable” below for some
examples). Later, as you continue to cut costs, you will be able to afford more extensive changes.

13. Unengaged Personnel
Whether it is with upper management or your employees, it can be difficult to actually implement your
sustainability initiatives when other people in your organization don’t support them, take them seriously, or
care. Do your best to ask for everyone’s input when creating initiatives. There is a good chance some
employees and managers will have their own ideas and issues.
Consider creating incentives — such as office parties and awards — and adding gamification to the
experience. Some unengaged staff need their ideas to be recognized, considered, and implemented if they
are viable, while others need external motivation to participate.
Inability to Assess Success
It’s impossible to know if your efforts are worthwhile if you can’t accurately measure the outcome. Instead
of worrying about what other businesses are doing, take strides to do what makes sense for your
organization. What can you do to measure your own sustainability success?
For example, when it comes to going green, Chron’s Kim Durant points out that “a logical starting point is
the raw materials that the business uses for its products or services.

14. But if you are a software-as-a-service company, your raw materials are just the computers, electricity, and
office equipment you require to make software. Can you buy computers from eco-friendly manufacturers
and recycle the old ones? Can you buy green electricity? Can you buy office equipment made from recycled
materials? The ability to check these boxes will be your measure of success.
For other businesses, it is important to collect data on costs and sales and compare it with your outcomes
once you have implemented sustainability initiatives. If your sales have not improved, you may have
undermarketed your value as a sustainable business to the consumer.
Lack of Focus or Plan
A nebulous, unfocused plan to go green can easily overwhelm your business as you try to make a profit at
the same time. Try to narrow your focus to one or two key issues that you care most about or think you
would have the biggest impact on, then branch out from there. Your plan should include an assessment of
how sustainable initiatives can cut costs in the long run and increase profits, if possible. If you cannot find a
profitable strategy, focus on the cost-cutting aspect. You can turn around and sink your savings into
investments and campaigns that will turn a profit.

15. Becoming more sustainable in an effective way may not be easy at first, but the challenge is well worth the
reward. Successful entrepreneurs, owners, and leaders look at problems as opportunities. Here are a few tips
to get you started.
Start Recycling at Work
Recycling is beneficial it keeps trash out of the landfill and the incinerator, and it creates 757,000 jobs
annually. If your workplace does not already do so, start recycling. If your workplace is already recycling, take a
moment to read up on the recycling laws in your area to make sure you are doing it correctly. It is easy for
everyone to get lazy and put items in the trash bin when they are at work. Provide ample recycling bins in the
workplace, make sure they are labeled for the types of items that go in them, and if your city has a
composting program, take advantage of it.
Encourage Green Commuting
The daily commute is a daily drain on the environment: each day, people waste 2.9 billion gallons of gas stuck
in traffic, and each person forfeits $710 in productivity per year. Green commuting could have a huge impact
on the environment by cutting down on daily emissions — encourage employees to do so when possible.
Biking, carpooling, and taking the bus are all forms of green commuting that can help your employees
contribute to sustainability both in and out of the workplace. Also, there are inexpensive scooters and electric
bikes for those employees who live too far away to ride a regular bike.

16. Offer Remote Work Options
Remote work is technically another type of green commute, as it keeps drivers and cars off of the roads. Some
positions do not allow for remote work, but if the work can be done outside of the office, allow people to take
advantage of it. Remote workers have the same impact on the environment as planting a forest of trees: they
eliminate 3.6 billion tons of greenhouse gases caused by commuting annually. Working remotely also helps
people avoid health risks associated with commuting.
Go Digital
Despite the rise of digital technology, many organizations still use more paper than necessary. Computers,
smartphones, and other devices are integrated into the workplace; use them to their fullest extent and avoid
using paper whenever possible.
Create a Sustainability Committee
Selecting a team of volunteers who are responsible for sustainability initiatives in the workplace can do
wonders for your efforts. It creates accountability — there are people specifically responsible for this, and
they can take care to follow up with others and bolster a culture of sustainability in the workplace. Moreover,
a committee will keep the ideas flowing. Task them with talking to other employees about challenges and
ideas and give them the power to make decisions.

17. This project has been funded with support from the European
Commission. This document and its contents reflect the views only of
the authors, and the Commission cannot be held responsible for any
use which may be made of the information contained therein.
Thank you….