Small- to medium-sized businesses account for 90% of business activity worldwide and are uniquely positioned to take climate action and do their part in reducing their environmental impact. For entrepreneurs and small business owners, adopting sustainable practices can not only reduce your environmental footprint, it can be good for business. Whether you’re just starting out or looking to improve your existing sustainability practices, there are a number of ways to reduce your climate footprint.
The Importance of Sustainability Practices in Business
Adopting sustainable practices can help to reduce environmental harm, conserve resources, and protect natural habitats. Businesses that prioritize sustainability are also likely to experience other benefits, including increased cost savings and improved brand reputation. Sustainable practices can help entrepreneurs reduce operational costs. For example, businesses can save money by using renewable energy sources instead of relying on traditional energy sources that are becoming increasingly expensive.
Adopting sustainable practices can also improve a business's brand reputation and attract new clientele. Consumers who are aware of the impact their purchases have on the environment are more likely to support businesses that prioritize sustainability. Being a “green” business can help attract environmentally conscious customers and retain existing customers.
Where to Start? Understand Impact and Setting Targets
It can be confusing for entrepreneurs and small business owners to know where to begin on their climate action journey. Luckily, there are a number of tools and resources available to assist you. The U.S. Environmental Protection Agency’s Center for Corporate Climate Leadership can help you develop targets that are appropriate for your business’ industry and size. Taking advantage of these types of self-assessment tools is a great place to start.
Global scope standards come from the Greenhouse Gas Protocol and provide standards, guidance, tools, and training for business and government to measure and manage emissions. Scope 1 emissions are direct greenhouse (GHG) emissions that occur from sources that are controlled by a business (for example, the gas used in your vehicles). Scope 2 refers to the energy purchased by a company, while Scope 3 refers to emissions from indirect activity, including purchasing raw materials.
For small business owners, focus on what you have control over: Scope 1 emissions. You can do this in three main ways: reducing energy consumption, increasing energy efficiency, and incorporating alternative energy sources.
Reduce energy consumption by turning off electronics and lights when not needed and using energy-efficient lighting. You can also upgrade to energy-efficient windows and insulation to reduce energy usage from heating and cooling. Small businesses can incorporate alternative energy sources — such as solar or wind power — to supplement or replace traditional energy sources, or they can replace gas-powered vehicles with electric ones. By taking these steps, small businesses can not only reduce their environmental impact but also save on energy costs in the long run.
Entrepreneurs have a critical role to play in the fight against climate change. Adopting sustainable practices can help businesses reduce their carbon footprint, conserve resources, and improve their bottom line.
Being a green business can also improve a business's brand reputation and attract environmentally conscious customers. Small changes can lead to big results, and entrepreneurs can make a significant impact by adopting sustainable practices in their business operations.
Interested in making energy-efficient upgrades and implementing sustainable practices in your business? DreamSpring has got you covered! We offer a range of financing options, including small business loans and lines of credit, specifically tailored to meet your financial needs. With DreamSpring, you can invest in energy-efficient technologies, sustainable materials, and alternative energy sources to not only reduce your environmental impact, but also save on energy costs and improve your bottom line. Don't let financing be a barrier to building a more sustainable business.
Learn about financing options to help your small business go green!