Demonstrating a commitment to sustainability is important for businesses of all sizes in all different industries. While small and medium enterprises (SMEs) may already be doing less environm ental damage than large, global enterprises, due to their size, there are always changes that can be made to make a more positive impact overall.
Whether it’s using energy more efficiently, optimising waste management processes, choosing more sustainable supply chains, or focusing on community impact, there’s lots that can be done to ensure your business is kinder to people and the planet. In this short guide, we break down five essential sustainability considerations that all small and medium enterprises should consider.
Energy efficiency and carbon footprint
Although SMEs may use less energy than larger enterprises on the whole, that doesn’t mean they’re necessarily energy efficient – or that they can’t further cut their emissions to reduce their carbon footprint. Companies with a physical office or factory space can start by:
- Conducting energy audits , to better understand current usage patterns across the business
- Switching to LED lighting, efficient HVAC systems, or renewable energy sources
- Tracking and reporting on carbon emissions to further identify areas for improvement
In addition to helping reduce emissions, these actions can cut costs for companies, helping small businesses to expand their operations while maintaining their commitment to sustainability.
Of course, not all SMEs have access to a space where they control these utilities. If you’re renting, look at what you can control. Can you swap the bulbs in your lamps, or make sure you’re turning off lights when they’re not in use? Even small actions like this can make a difference.
Waste management and resource efficiency
By using materials more efficiently, SMEs can both reduce their costs and their environmental impact. For example, recycling and composting programs can be implemented to ensure fewer materials are harmfully disposed of or go to waste. Similarly, reducing product packaging wherever possible can go a long way in reducing harmful waste that may end up in landfill – this could mean optimising supply chains or using fewer packing materials to deliver products.
Businesses of all sizes are often guilty of producing far more stock than they need, which inevitably goes to waste. By optimising your processes so that you can better forecast
customer demand, you may gain a more accurate picture of how many products you actually need to produce.
Sustainable supply chains
SMEs often have the unique opportunity to source from small, local suppliers with ease – unlike large corporations that often require global supply chains to meet consumer demand. As such, SMEs can choose local, ethical, or certified suppliers, and collaborate with them to adopt more sustainable practices – such as by reducing transport emissions and packaging.
Similarly, close contact with these suppliers allows owners of SMEs to properly evaluate suppliers’ environmental and social practices. They don’t have to rely on outsourcing to get this job done, and simply opening communication channels can foster transparency and ensure they’re working with suppliers with the right eco credentials.
Employee wellbeing and community impact
Sustainability is about both being kind to people and to the planet. So, SMEs should promote fair wages, safe working conditions, and a commitment to diversity and inclusion. Again, thanks to the smaller scale at which SMEs operate, they have the opportunity to oversee these processes, ensuring that nothing gets missed. Regular audits and assessments are essential for ensuring fair labour practices.
In addition, SME owners may want to support local community initiatives – it’s a simple way for a smaller organisation to make a big impact. By providing training in sustainability and ethical practices, they can also ensure that their employees are well equipped to do their bit for the community.
Governance, reporting, and long-term strategy
For SMEs, integrating sustainability into their business strategies builds resilience and supports their reputation as a sustainability-focused organisation. It’s essential to set ESG goals , such as net-zero targets, which are measurable and achievable. Reporting on the progress of these goals fosters transparency, and ensures SMEs don’t fall victim to greenwashing practices.
Ultimately, SMEs should focus on embedding sustainability into their company culture and decision-making processes. It might seem like a big task, but starting as a small business makes it more manageable – you can then scale your sustainability operations as your business grows.
No matter the industry or size of the organisation, all enterprises can do their bit to improve their current processes and further their commitment to sustainability. The goals of SMEs may not always be comparable to the goals of a larger business, but each small change helps.
