Environmental sustainability in business

In the world of today, there are so many ways an entrepreneur can break into the market, but on top of that, the world is now learning more and more about the detrimental effects of big industries on the environment. Now, sustainability has to be treated not as a trend, but the tiller that guides industries, in order to survive.

Recent studies have shown that over 71% of the global greenhouse gas emissions (the gasses that cause global warming and climate change subsequently) are attributed to only 100 companies. These major companies mainly consist of non-renewable energy industrial giants, but this doesn’t excuse the fact that other manufacturers of daily goods, cosmetics, electronics, and even vehicles have also contributed to this number in a major way. 

Numerous campaigns have been in force since the 90s to enforce a more greener, safer lifestyle among the world's people, and this has created demand for alternative products that do not leave such a large carbon footprint. If the incumbent industry giants do not shift with the times, they would face losses not only from a lack of demand, but also harsh policy and changes in law that follow greener philosophies. Thankfully, there have been some major, crucial companies that have changed to accommodate, and some reporting higher profits as well, that are contributing to major projects aimed at mitigating climate change and other ill effects of pollution.

First, taking a look at how some companies have changed their internal workings without changing their entire brand, Google stands out proudly. It report that its data centres, with all the millions of servers that need to be constantly online, now operate with 50% lesser energy consumption than the average data centre. They took it two steps further to divert 91% of the waste generated from these centres away from landfills, while pressuring their suppliers to use more renewable resources. These steps might sound simple but undertaken by such a large company as Google, the effects will be hard to ignore.

Neslté, the food and beverage company, would be responsible for all the waste created when their packaging is disposed of, as not every consumer would have either the fortitude or the means to recycle. Nestlé attacked this problem right at the source, by systematically reducing the weight of their packaging by over 500 million kg since 1991, and therefore the energy consumption of transportation. They went a step further up the chain and made the effort to train their suppliers in ways to minimise their environmental impact. 

Second on this list, would be to take a look at a couple of companies who are not only utilising sustainability methods, but also having a positive impact on the environment through their production. Made of Air, a German company, creates a biochar-based construction material suitable for interiors, furniture, and much more. However, it is their production process that has a positive impact. They use 90% atmospheric carbon to create the thermoplastic base material, which creates a carbon-negative impact. 

Brickify, a Nigerian company, takes plastic waste and transforms it into actual building bricks, much like Legos, which are water, fire and heat resistant. This diverts unrecycled plastic waste away from landfills to build long-lasting, sustainable housing, creating once again a carbon negative effect. As the production process gets more and more streamlined, it is expected to be cheaper than conventional construction practices, which is another cherry on top for such a movement. 

However, it would not be fair to turn the spotlight away from companies that still hold true to their product base while working on other avenues to improve the environmental impact. Unilever, with well known brands like Dove, Lipton, and Axe to name a few, has set up three main goals to ensure sustainability at all levels of their industry. They intend to halve the carbon footprint not only in production, but also consumption of their products, while working to improve the health and well-being of their customer base. It is estimated that over a billion people may be impacted by their movement by 2030.

Another company to note would be BMW, as well as nearly all major vehicle brands, who have begun shifting their production ideologies towards hybrid and electric motors to cut down on emissions. BMW stands out in this list for being the first company, and first entity in fact, to appoint an Environmental Officer in 1973, which only goes to show that they were savvy to shifting trends and rose to meet the challenge.

Finally, taking into account all that these major and small brands are doing to combat environmentally detrimental impacts, it is clear that sustainability is key for the new generation of companies. With the lowered cost of entry into the market, and the many niche industries popping up, SMEs can play both a crucial part and reap profits by keeping this in mind. 

One such company that conducts a very unorthodox business would be Plan A, a German company. With the intention of creating a carbon-neutral and sustainable economy, Plan A provides companies with a digital platform with very specific directives. The platform aims to help companies reduce, monitor, and compensate for their environmental impact, with its Emissions Reduction Software. This software helps calculate the monthly carbon footprint of a company, while being able to create customised action plans for sustainability.

Entrepreneurial opportunities are endless, but our resources are not. There are many lessons to be learnt here, and applied to all of those opportunities, be it in the F&B industry, hospitality, tech startups, and even urban agriculture. The smarter businessperson knows that an investment in the environment is the biggest one they must make.