People worldwide aim to live more sustainably, and the trend shows no signs of slowing down. People look for sustainable products and companies to support in an effort to make better purchasing decisions.
Thus, many companies also want to adopt sustainability practices. Whether starting an eco-friendly business or shifting your current one to be more sustainable, the process is not that simple.
Here are some hurdles that can pop up for green business owners:
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1. Funding
One of the top concerns for business owners when it comes to going green is the lack of funding. Yes, it can cost more to source materials more sustainably. Changing suppliers and methods can be costly, and few companies are ready to take on that expense.
One thing business owners must remember is that going green can also mean saving money in other areas. For instance, switching to energy-efficient equipment might cost more upfront, but you can save money in the long run while using them.
This principle can also apply to switching to sustainable energy sources. Many companies adopt a net-zero approach to energy, meaning they aim to produce the same amount of energy they use. This is a great example of investing in a long-term gain. Companies might need to invest in renewable energy, but the move can help save the company money in the long run.
2. Planning
Running a sustainable company requires considerable planning. It is not that simple and depends greatly on the owner’s commitment to the cause. Without careful planning, businesses might not be able to stick to their advocacy and can lose support from discerning customers.
The first thing a business owner must do is to solidify the company’s sustainability mission. What is the central goal of the company when it comes to eco-friendly initiatives?
Next, the owner must outline how they plan to implement this mission. They must highlight everything that needs to change, from equipment to suppliers.
Business owners must also determine how they will streamline production, transportation and other aspects of the business that emit a lot of carbon emissions.
The owner must also think of programs, collaborations and partnerships they can enter to help further their sustainability initiatives.
3. Supply Chain
Another top concern for eco-friendly business owners is managing a supply chain with sustainability in mind. Aside from increased costs, business owners also have to worry about other factors. First, they must consider sustainability every step of the way.
Businesses need suppliers and contractors to operate. Companies that aim to be legitimately green must do everything from raw material sourcing to transport sustainably. Consumers are becoming more discerning. They may not be impressed with a company’s sustainable products if they know it uses gas-guzzling vehicles to transport them.
Business owners will also need to enlist the help of experts to see what sustainable measures they can implement with real results in mind.
Owners also need to keep up with the science. More sustainable materials are invented yearly, while other existing materials are deemed harmful to the environment. Businesses must be able to adapt to the evolving science to be able to maintain their credibility.
4. Compliance
Going green is an advocacy and a commitment. However, not all employees will have the same commitment to the cause as the owners. Getting employees to comply with sustainability standards might be difficult, especially if doing them is more complicated or time-consuming.
Switching to more sustainable methods when employees are already used to doing one thing can also be met with some pushback.
Business owners can use sustainability measures as an opportunity to engage their employees. They can create incentives to encourage employees to comply with greener practices. Employees, of course, respond better to financial incentives. Many companies have sustainability incentive programs in place. Intel is an early player, putting in an incentive program as early as 2012. The program worked well, with Intel seeing a 35% decrease in greenhouse gas emissions. Many companies followed suit after.
Business owners can provide incentives for many practices. Some companies reward employees for energy conservation, proper waste disposal, water conservation and paperless initiatives.
Businesses can also offer programs to help employees live more sustainably. For instance, some companies offer a cycle-to-work scheme, where employees get discounts on bike parts and maintenance.
5. Regulation
Businesses must comply with various sustainability regulations depending on factors like location or sector. These regulations can range from energy sources to waste disposal. Sustainability regulations can vary depending on each state, and regulations also differ depending on the industry.
It can be challenging for owners to navigate these laws, so they must research thoroughly beforehand.
Other regulations also concern labeling. Many green labels like “natural” or “clean” are not regulated by the government or any independent body. However, some labels like “cruelty-free” or “vegan” can be certified. Moreover, the government regulates the label “organic,” and companies must adhere to strict standards if they intend to use it.
6. Lack of Results
There is a huge market for sustainable products. Globally, 60% of people consider sustainability a top factor in whether they buy a product. Consumers from all generations are becoming more eco-conscious. Many are willing to spend more for products that are sustainable or have eco-friendly packaging.
These numbers might be promising, but business owners might not necessarily get immediate results. Business owners might grow frustrated or give up on going green entirely, especially if doing so requires a lot of funding and resources.
It is important to remember that results do not have a set timeline. Business owners must record data and observe their numbers. If there’s a problem, they must adjust it. The important thing is to stick to the advocacy and show consumers you are committed to the cause.
7. Going Green vs. Greenwashing
Many consumers are increasingly wary of companies that greenwash their products. If you’re a business owner, you want to distinguish your business from those who use green imagery dishonestly.
Greenwashing is when companies use images and words alluding to sustainability but don’t have real green initiatives and might even hurt the environment with their practices. Some examples would be companies using images of trees on their products to make consumers subconsciously think of sustainability even though the product itself is harmful to the environment.
To avoid greenwashing and incurring negative public opinion, companies must stick to their advocacy and apply it to their products with strict regulations.
Overcoming Challenges to Sustainability
The business landscape is changing, perhaps for good. The shift towards a more sustainable tomorrow is consumer-driven, so the greener you go, the better it is for your business.
Although there may be initial challenges to running a more sustainable business, the rewards are well worth the effort. Not only do businesses fulfill their social responsibility, they can also attract more customers and enjoy larger profits.