Navigating The Cost Of Sustainability

No doubt you’ve thought it "sustainability is expensive." And if you're a business leader striving to balance budgets and meet targets the added pressure to include a green strategy is just that - added pressure.

This a genuine real-world challenge for businesses of any size. But what if I told you that this well-worn belief deserves a bit of a rethink? It's time we reframed the narrative. Done well, sustainability isn't a cost; it's an investment. An investment in our future, our brands, and often our very own profit margins.

It's okay to feel the pinch.

Those initial figures for sustainable technologies or practices can indeed be intimidating. The marketplace is filled with shiny (and sometimes costly) sustainable solutions, and it can often feel like stepping into an eco-friendly tech store, unsure of what to buy.

But it’s important to remember that sustainability isn't one-size-fits-all and every budget can begin to make a positive difference. While the news might showcase businesses making massive green investments, there are countless budget-friendly and eco-friendly tweaks. Simple steps like energy-efficient lighting, waste reduction, reducing plastic use and beginning your journey to cutting transport emissions will make meaningful differences without breaking the bank. And to be honest, all businesses should be actioning these or working fast towards these basic changes.

When it comes to measuring carbon emissions, this can be done manually to cut costs but there are solutions, technologies and partners that can suit most budgets. That said, I wouldn’t recommend a manual process. If you do not already have trained staff in-house, they do not want to do this additional responsibility. It is hugely laborious, requires high attention to detail and is a skilled and pressured task. The cost analysis of carbon accounting software verses internal employee hours would likely favour the software.

Manual carbon emissions counting isn’t the answer to cost cutting, it just puts pressure on your staff. There are plenty of other, more productive ways your team can be involved in your sustainability strategy.

There can be cost crossovers with various green accreditations, different softwares and offset options so taking professional advice as to the best options for your business will not only save you in the long term, but give direction and focus to your chosen strategy.

Bigger Investments, Broader Horizons.

Now, if you've got room to invest a lot more, the sustainability world is your oyster. Bold investments often lead to game-changing innovations that bring notable returns in the long run. There is literally a wealth of opportunity joining the circular economy, sometimes you just need a guide in the right direction for your business. And don’t worry, you haven’t missed the boat - I can’t name an industry that doesn’t need eco-innovations. Ideation sessions are a great place to start.

It’s important to note that from a compliance point-of-view that landscape is rapidly changing around climate disclosure (essentially reporting your carbon footprint) and it’s likely to become mandatory very soon. If you are a medium - large sized company in Australia and you haven’t got a handle on your environmental impact, this needs to be on your short-term radar.

Hidden Treasure

Generally speaking there are always unseen benefits for businesses. Adopting eco-friendly initiatives often streamlines processes, cuts unnecessary costs, and reduces waste. So while there might be an initial investment, the long-term payoffs in savings and efficiencies can be genuinely rewarding.

Don’t underestimate how much consumers adore brands that reflect their values. Embracing sustainability doesn't just resonate with Mother Earth; it resonates with customers too. That eco-friendly stamp can foster trust, loyalty, and positive word-of-mouth which are all invaluable assets in today's market.

The ultimate hidden gem in every sustainability strategy is communication. Without a solid (and appropriate) communication execution you’re missing out on the fringe benefits both internally and externally.

Business leaders, I get it. The path to sustainability can seem daunting and, at times, costly so it’s another thing that just keeps creeping into the ‘too hard for now’ basket. But remember, it's an evolving journey, not a one-off purchase. Embrace it step by step, and you might just find that it's an investment that pays dividends in more ways than one.

IMAGE: This image is of a bull after a mud wallow!  Bulls use mud wallows for thermoregulation and helps them cool down in hot weather. In the context of finance, bulls represent optimistic investors which is why we chose this guy.
By Gurth Bramall from Unsplash.