The 5 key things to think about when setting up a sustainable business…

In today’s market it has become essential that any entrepreneur beginning on their new business venture keep sustainability in mind. It is not just a moral and ethical requirement that every one of us takes responsibility for their environmental impact, it has become a financial necessity for any new business. Consumers across industries are placing the environmental credentials of the products they buy increasingly high in their list of concerns. The demand for sustainable products is leading the growth of the sector in anything from food, to fashion, to cars…

Any new business needs to differentiate itself in order to stand a chance on our crowded market, and what better way to do so than by delivering on people’s sustainability expectations? Established corporations are slow to adapt and unable to move to truly sustainable practices overnight. That is where the advantage of being a small new enterprise comes in.

Now the question is: how can you be truly sustainable? How can you authentically be better than the alternative and become a brand that people want to be associated with because you care and act accordingly?

Here are 5 things to keep in mind when setting up a sustainable business…

1. Do your research

Whether your business is built on a product or a service, you will be using material resources. These resources can come from non-renewable sources (think petrol, single use items, …) or from renewable sources (think solar, reusable items, …) AND these resources will have varying levels of impact on the environment (think animal products vs plant-based alternatives).

The first thing to do is to identify exactly which resources your business is going to need and list them out. Once you have an exhaustive list of what you will be needing find out what the impact of the materials you are planning on using is. There are plenty of blogs and academic sources available online that will tell you what the environmental footprint of what you are looking for is.

Now is where things can get a little more complicated. Once you know what resources you need and what their impact is, it is time to find out which ones can be easily swapped out for more sustainable alternatives and which ones cannot. Some items are easy to change, say plant based milk instead of animal milk or bamboo instead of plastic straws. Those are the ones you want to start with, make the easy swaps first. Then focus on those resources you need that have a high environmental footprint and make sure you replace them.

For those, the alternative may be harder to find, which brings us to our second point…

2. Collaborate

This point is absolutely essential for ANYONE trying to bring positive change in the world and create a sustainable business. No single company or person can bring about all the change needed to put an end to the climate crisis. Yet several working together can do just that, and do it better.

It might prove very challenging to replace the industry standard for some items. For example: about 60% of all clothes are made from polyester (a plastic material). The entirety of the fashion industry relies on this material heavily and this industry is also responsible for 10% of global greenhouse gas emissions. Any new garment brand will need to find an alternative to this ubiquitous material if it wants to earn its sustainability credentials but may not have the R&D budget to find an alternative…

Luckily, it won’t have to! Whether you take the fashion brand example above or any other industry, innovation in raw material alternatives and green production methods is on the rise worldwide. Today, you do not need to create the perfect solution, you need to find the person who is on the same mission as you but operating elsewhere in the supply chain.

This has become extremely easy in our globalised society. Social media platforms such as LinkedIn, Instagram and Facebook allow anyone to connect with likeminded individuals who can propel your journey towards sustainability forwards with very little time or money invested.

3. Think circular

Now that you’ve been able to assess the environmental footprint of your enterprise and replace all unsustainable materials and practices with sustainable alternatives it is time to consider the end of life impact of what you are creating. To be a fully sustainable business today it is crucial to break away from the linear business practices of the past.

Any new business must now think about the impact of their creation once its use runs out. The most effective way to do this is to design your offering with the end in mind. When creating your product, is there any way you can make it fully recyclable/compostable? Can you offer a recuperation scheme? A refill scheme? Consider a modular design that would allow it to be easily replaced or repaired... There a many innovative ways of making products circular.

The best part of circularity? It has financial advantages to it too. Many innovative business models come out of a circular thinking. With such schemes new businesses can improve customer loyalty and increase the number or repeat clients by offering incentives for people returning their products.

Circularity makes sense from both an environmental and a financial perspective. So make sure that from the very beginning, you create with the end in mind!

4. Align your actions with your values

This is often where the going gets tough. To truly achieve sustainability in a business, the mindset must come from each founder and team member. An enterprise that sees sustainability as a marketing tool or a sales argument will never achieve it. Authenticity is part of sustainability. Only a team that authentically cares about the environment will have the drive, imagination and commitment to design a business that puts sustainability at its core from beginning to end.

Anything less than that may work for some time but eventually comes out as greenwashing as more corners are cut, polluting resources are used, and brand communications reveal the mentality of its team. Once lost, sustainability credentials and consumer trust are hard to gain back. Clients will catch on to dishonesty and media will find out any personal shortcomings to criticise an upcoming brand on its sustainability credentials.

The founders’ commitment is therefore just as important as the actions of the company. On a personal level, each individual in the team must be truly connected to a sustainable lifestyle and must be showing the way in their own lives. It is important that the daily habits of the team represent the sustainable future they are committed to.

Think about it: you run a sustainable business committed to reducing plastic waste, but use throw away coffee cups and plastic straws?!

5. Start now, get perfect later

Finally, the one most important item on this list: start now, get perfect later. The founder of Patagonia, Yvon Chouinard, said: “To do good you actually have to do something”. It would be ridiculous and unhelpful for me or anyone else to expect you or other sustainable entrepreneurs starting on their journey to get it all right from the start.

You may have done all the research possible, spoken to all other stakeholders, collaborated with everyone out there, designed a fully circular product, aligned yourself and your team to your values and still not be 100% sustainable. For example, you may not be able to do without shipping in fossil fuel burning vehicles or one of materials you need simply does not have an alternative solution right now. Don’t let that stop you! Chances are, by having taken the first 4 steps you are already miles ahead in terms for sustainability than anyone else in your space.

So get started, launch your company, put your idea out there and admit that your solution isn’t perfect. Show how much of a great job you’ve done, how sustainable your solution is, and then ask for suggestions from your audience on how to improve. Stay open to new options and actively look for sustainable alternatives as they come out but don’t let their absence stop you in first place.

It might take you an extra few years to be where you want in terms of sustainability but having started this way you are ready to fix your last issues and all set up to start a truly sustainable business!

Armed with these 5 key steps to set up a sustainable business, you are ready to take on the world of entrepreneurship without compromising on your vision of a sustainable future. Businesses are in a uniquely important position to tackle the climate crisis and I am excited to see you on this journey!