• Sun. Jun 16th, 2024

5 Things to Consider when Building a Sustainable Business Model

ByManali

Oct 23, 2022

Businesses are beginning to take steps toward sustainability.

Many large and small businesses are now firmly rooted in Sustainable Goal Development (SDG). Customers are more inclined to buy brands and companies that care about climate change. Investors have also been more drawn to innovative technology that allows businesses to transition into a more environmentally-friendly and ethical business model.

In a matter years, organizations have pushed the boundaries by developing new tools, resources, and other tools that can help businesses lower carbon footprints and become more eco conscious about their practices and operations.

According to recent data, 67% of companies that were surveyed in a Deloitte survey used sustainable materials in the production of their products.

These efforts are complemented by research and developments by the Science Based Targets Initiative. (SBTi) currently collaborates with more that 3,400 companies to decarbonize the planet and meet SBTi goals in the next ten-year.

Executives across the globe are beginning see the value in sustainable business practices.

Any startup or business that is starting a new venture must consider environmental policies and the need for strong sustainability. Making the right decisions can pose challenges. It is important to understand what you should consider when navigating these roads.

Tips for Building A Sustainable Business Model

Here are five important things business owners must consider when creating a sustainable business plan that will work.

Make sustainability a Core Principle

In order for a business’s sustainability and environmental consciousness to begin, executives and owners must be mindful of the importance of including these efforts in their core operations and business model.

Instead of reinventing your wheel, take a look at what other businesses do and how it works for them. Make sure to adapt your business model as you go along with environmental and sustainability policies.

These policies should be followed throughout the company. Make sure that new employees and existing employees are aware of how the company is working towards ethical practices.

Keep a realistic vision

Even though it may sound impossible at first, achieving full-scale sustainability (or even net zero) can be possible. However, this is not an unreasonable goal for a small start-up. Even for large corporations it isn’t always possible to go entirely green within the first few decades.

Make sure to take the time to identify realistic green goals and to create a roadmap that will assist you and your colleagues in achieving these goals.

Yes, you will encounter setbacks. But, instead of letting them stop you, keep your eyes on the bigger picture of the goal you have in mind.

You must plan with the environment in mind

You must consider the environment when designing a new product range or service offering. Look at the materials you use to make your products and see if there are any sustainable substitutes.

Maybe you could start by looking into implementing a remote/hybrid work plan for employees to cut down the commute time to and fro work. You may be looking for ways to reduce water and energy costs, but aren’t sure where to start.

There are many avenues that you can use to help you find greener alternatives. But, it’s important to see how these efforts will propel your business forward as well as help you meet your sustainability goals.

It’s amazing how small changes can make all the difference.

American employees print roughly 10,000 copies per annum. This figure is per employee. Business tend to spend about $1200 per employee on printing.

This is not just a costly task, it’s also a wasteful endeavor.

Not only will you save time and money, but your office’s paper consumption will also be reduced. It is something small you can do to improve your life, but long-term it will make a significant difference.

There are many places within your company or office where you can make small changes that can have a greater impact on your sustainability goals. Think about areas that can be used to their greatest extent at all times, without needing them to be replaced every now and again.

Think about The Conscious Consumer

Consumers are becoming increasingly conscious of how companies manage their environmental transparency. This will lead to more support for brands who are committed to improving the quality and sustainability of the environment over the next decade.

A study has shown that 66% would spend more to buy products from sustainable brands. However, 81% consumers believe that companies should contribute to improving the environment by setting more progressive sustainability goals.

This is just one example from many that show how consumers, including younger ones, increasingly expect businesses to take responsibility and be more eco-conscious.

Finishing off

There are many companies that can help improve the quality and sustainability of the environment. Consumers are now increasingly concerned about the need to have sustainable business practices at all levels of the value chain. For small businesses, this could prove to be an important factor that drives their success.

Businesses of all sizes need to think about not only how their operations contribute to the greater scheme, but also how the business model they have is designed for the future.