Sustainability And The Small Business

Fuelled by massive media interest we have seen an acceleration of public interest and concern over global climate change and environmental issues in the last few years. Evelyn Cagney looks at how small businesses can use this to their advantage.

Greenwashing

Recent consumer research has shown that the vast majority of consumers won’t choose a product that claims environmental benefits unless it meets all their other needs: performance, value and cost. Sceptical consumers are now becoming increasingly wise to the claims of the blue-chip companies, in their race to find favour with increasingly environmentally aware consumers, and are making bold claims that they cannot live up to.

Several blue chip companies, such as BP, have even restructured their principle branding efforts around sustainable concerns to make their company appealing to eco-friendly customers. The term ‘Greenwasher' was coined to sum up a company that claims to be more sustainable than the public believes is true, with BP being hailed as the biggest Green pretender. However, BP are just one example of retailers making claims and promises to their customers regarding carbon neutrality and the use of sustainable materials.

The role of the Government

According to the 2008 Environmental Performance Index (EPI) produced by a team of environmental experts at Yale University and Columbia University, Ireland ranks 34th amongst a global list of 149 countries in terms of environmental performance. In 2006 Ireland ranked 10th. So what is the Irish Government doing to encourage SME's to implement environmental policies?

Europe has taken an active role in incentivising environmental involvement by businesses with looming clouds of heavy fines and global embarrassment. The UK government is just one example of advocate countries who have put increased pressure on companies to encourage them to implement a plausible environmental policy, particularly in order to qualify to work with the Government. There is also environmental certification available, such as Green Mark, which was set up to enable businesses to improve their environmental performance and gain recognition for doing so.

John Gormley TD, Minister for the Environment, Heritage and Local Government recently admitted to recognising the pressures on businesses regarding the environment. “From the increasing cost of resources, public expectations and stronger enforcement regimes means that companies that integrate the environment into their operations will have the competitive edge.” he said. But without environmental accreditation or performance regulations through any form of legislation, the Government has yet to incentivise the participation of SME’s.

So what is in it for us?

Many companies have become aware of the two fold benefits of working sustainably and have realised that ‘saving the environment’ can also mean saving money. Despite the lack of encouragement from the Irish Government, implementing environmental initiatives has the added bonus of providing businesses with numerous cost savings and can improve a company's reputation. Even small measures such as aiming to reduce energy use in the workplace, or to considering what materials you use and to ensure that all your waste is disposed of responsibly can add value and enhance your business.

– Brand reputation and governance

Tackling environmental issues can improve your company's reputation with your stakeholders - your customers, regulators, the local community, your employees, your investors and your suppliers. Communicate your environmental performance by your stakeholders aware of your environmental commitment. This is likely to be of interest to customers – as I mentioned earlier, measures taken to become "greener" are becoming an essential element of marketing material.

– Reduce your company’s costs

Minimising waste, from using raw materials more efficiently to cutting down on energy consumption, is one of the most effective steps you can take to protect the environment. These environmental initiatives have the added bonus of providing the company with numerous cost savings and making your business more efficient. Regular inspection and maintenance of equipment may also save you money in the longer term.

– The benefit for your employees

It is essential to secure employee support and involvement in improving your environmental practices as your employees are the people who actually implement the changes. They may even have a better understanding of the risks and problems than you do. Additionally, some environmental practices, such as cutting carbon emissions from travelling to and from work, may significantly impact employee's lives. Staff may also gain motivation from the fact that they work for an environmentally responsible business.

The design perspective

The design and advertising industries have the biggest role of anyone to play in communicating a company's sustainability. At BFK we recognised the financial and professional benefits of going green and our potential role in the sustainability sphere.

To formalise our commitment to reducing the environmental impacts of our business we produced a company environmental policy document which outlined our environmental processes. This process ranges from small steps, such as printing on both sides of paper in the studio, to the more challenging, to more long term objectives, such as aligning the thinking of all our team members and suppliers to that of our environmental policy.

We realised that we must be continually thinking about the longevity of what we produce and its impact on the environment, in raw materials, manufacturing, transportation and the use of a product and beyond that to its disposal. Educating our clients about the need to use sustainable materials is also a key factor. Instead of waiting for our clients to come to us, we have the responsibility to extend our own code of ethics to our clients.

The bigger picture

From a business perspective working sustainably represents good common sense. It is an economic no-brainer. With turbulent times ahead, it may be an appropriate time for small businesses to consider analysing the environmental implications of all aspects of their practice.
The bottom line is that taking a sustainable approach can improve company performance and profitability through lower costs as well as better stakeholder relations and greater innovation. By taking a long-term view you will increase your business' potential to grow in the future.

But green working is a gradual progression, in both attitude and perspective. It is important to encourage every member of the team to participate and become involved in the process that will not only benefit the environment but also the company, in terms of productivity and how they are perceived by potential and current customers. From a design perspective this involves assessing the environmental impact of a project, from the start right through to the completion of the project.

Len Sauers, VP Sustainability at Proctor & Gamble, suggests that the objective should be to integrate sustainability into the rhythm of your business and to see it ‘as both a responsibility and a business opportunity’. The global impact on the environment will play a decisive role in the future of both multi-national and small businesses and it is inevitable that sustainability will become a normal part of every day business practice in order to stay ahead of the competition.

“Green is a principle, not a proposition”—John Grant, The Green Marketing Manifesto 

Article by Evelyn Cagney, Senior Designer BFK