April 30, 2019 Business Planning en_US We’re spelling out lessons from environmentally-friendly companies about why you should focus on reducing your carbon footprint. https://quickbooks.intuit.com/cas/dam/IMAGE/A2qNWMQft/38018eb22103233197f652569ea769d5.jpg https://quickbooks.intuit.com/r/business-planning/reducing-carbon-footprint Reducing your carbon footprint: Lessons from environmentally-friendly companies
Business Planning

Reducing your carbon footprint: Lessons from environmentally-friendly companies

By Kat Boogaard April 30, 2019

You’ve heard the buzz about sustainability, but it hasn’t been something you’ve focused on yet.

You aren’t alone.

Many business owners still have the perception that reducing their carbon footprint is a zero-sum game. Benefiting the environment means harming your business.

“Recently, however, new common wisdom has emerged that promises the ultimate reconciliation of environmental and economic concerns,” explains an article for Harvard Business Review. “In this new world, both business and the environment can win.”

There’s no denying that environmental impact is now top of mind for consumers—which means it needs to be a priority for businesses as well.

But if you’re still feeling resistant to these changing tides, we’re here to help guide you. Over the past month, we’ve covered a number of environmentally-friendly companies and pulled together these four lessons from their stories that you can put to use in your own small business.

Your customers love to buy from environmentally friendly companies

Customers have a lot on their mind when making a purchase decision—they’re weighing things like cost, convenience, and social proof.

It’s tempting to think that your environmental practices aren’t even on their radar. But, believe it or not, they really are. Research shows that 73% of U.S. consumers think it’s important to buy from green companies that are socially or environmentally responsible.

This emphasis on sustainability will only continue to grow as the younger generations increase their buying power (millennials are a particularly eco-conscious generation of shoppers).

This increasing focus is even giving rise to a whole new category of businesses—where sustainability isn’t just “good” business, but it is the business. It’s at the core of the product itself, rather than a tweak to an existing process or a clever marketing ploy.

This trend won’t move backward. Environmental impact is something that current and future consumers care about. More and more they’ll seek out businesses who align with these values.

Read more: Sustainability, ‘small’ business, and the love of the craft

Green is affordable, big and small businesses prove it

There’s no sugarcoating it: If you’re truly focused on sustainability, there will be an upfront investment to choosing environmentally-friendly supplies and vendors.

However, there are plenty of sustainability practices that will cost you next to nothing. Try instituting a recycling program for your used products and packaging or encouraging employees to bike to work.

Even better, there’s actually a financial upside to reducing your impact. There are often tax breaks for becoming more energy efficient and, obviously, focusing on conserving energy and power also reduces your monthly bills.

As a large-scale example, General Mills refitted an old plant to focus on energy efficiency and saved $4 million annually from that single location as a result. But you don’t need to be a giant corporation to experience major savings.

For example, I spoke with a grocery store owner in Lakewood, Wisconsin who installed solar panels on the roof of his store. Why? Because food service buildings have been reported to have the highest energy consumption among commercial buildings. He’s witnessed up to a 15% savings on his monthly energy bill and mentioned there were also many days when the panels were producing more energy than he was using.

Savings on your monthly expenses aside, a focus on sustainability can also help you make more sales, charge higher prices, and recoup your initial investment. In the Nielsen Sustainability Report, 66% of respondents said that they’d actually be willing to pay more for sustainable goods.

Learn more: Corporate social responsibility: Definition, examples, and benefits to small business owners

Reducing your carbon footprint can save you ‘green’

Yes, there are some environmentally-conscious changes—like altering your product packaging or installing solar panels—that will require an investment in time and money.

But not all sustainability practices are large or complex undertakings. There are plenty of smaller changes you can make to go green. Simple tips add up to big results:

  • Ditching the styrofoam coffee cups in your break room
  • Powering down your equipment every night to save energy
  • Moving toward online subscriptions and a more paperless office
  • Eating locally, subsidizing public transportation, and buying safe cleaning products

Little adjustments can reduce your impact and prove your commitment to sustainability—without being completely daunting and time-intensive.

Read more: What is a green business? Plus, 10 ways your small business can add up big savings

Small business practices can and do impact the environment

You’re only one business—how much impact can you really have on the environment? It’s not like your company alone will make or break an environmental crisis, right?

That tendency to minimize your own contribution is understandable, but it’s also misguided. Consider this: It’s estimated that for every single truckload of goods produced in the United States, we throw away 32 truckloads of waste.

That fact alone is one of the many reasons why businesses large and small have shifted to to sustainable design—in their marketing materials, their packaging, and even in their products themselves.

No, your changes won’t be on the same scale as a large corporation like Apple revamping its iPhone packaging to use 84% less plastic. But, that doesn’t mean small tweaks to be more environmentally-conscious aren’t equally worthwhile or positive.

Remember, big changes are just a series of small improvements that add up.

Learn more: Sustainable design: What it is, why it matters, and how you can get started

More upsides than downsides

As a business owner, it’s natural to bristle at the idea of making changes—particularly those that don’t seem time-pressing or offer an immediate, tangible payoff.

But as these lessons prove, many of the reasons you’ve likely cited for not incorporating sustainability into your small business are based more in fear and skepticism than in fact.

True sustainability will require a commitment, but it’s well worth it for the benefits that you, your consumers, and our environment will reap.