With the pandemic focusing our minds on creating a better, healthier world, sustainability has become centre stage in future-proofing the planet. As Australians look to organisations to step up and do their part in protecting the environment, now is the time for small business leaders to change how they do business.
The pandemic has underscored how interconnected our world has become, and that the health and well-being of our planet is deeply linked to that of our people.
From the worst bushfire season in Australian history to the recent flash flooding and severe weather events on Australia’s east coast, it’s clear we are experiencing some of the most extreme weather events on record and must invest in innovative ways to inspire collective action to address climate change.
Sustainability critical to future success
Small businesses with their finger on the pulse know that their future viability remains contingent on meeting demand for consumer and employee sentiment towards the environment, as well as the health of local communities. Sustainability is no longer just a matter of reputation and trust, but an opportunity to gain a competitive advantage.
In fact, Mastercard’s latest research reveals that 82 per cent of Australian SME leaders identify sustainability as critical for success in their industry. And this year, more than two-thirds (70 per cent) of small businesses claim they are both actively exploring how to operate more sustainably and taking steps to improve their practices, creating opportunities to attract consumers and employees, reduce costs, grow profitability and thrive in the future.
The benefits of going green
As consumers learn more about climate change and how their own actions – as well as those of the businesses they engage with – contribute to the environment, their shopping behaviour is shifting. Australians have begun questioning the nature of their purchase before transacting, wanting to know more about a business, who they are and what they stand for, not just what they sell.
Thanks to technology and a more digitally connected world, consumers are researching before they buy, looking at a business’s website and social media before making a decision about whether to make a purchase. If a consumer knows that they are purchasing a product or service that’s not negatively impacting the environment, they’re more likely to become loyal customers.
The pay-off of going green
Mastercard’s research reveals that over half (52 per cent) of Aussies say they’d pay more for products or services if it came from a business that was actively reducing its carbon footprint. In turn, 66 per cent of Australian small business leaders see the connection between improving sustainable business practices and the opportunity for not just higher revenue, but also increased customer demand, better brand reputation and higher employee retention. In fact, almost half of workers stated they wouldn’t work for an employer who didn’t have an active sustainability plan in place.
By being aware and embracing eco-friendly practices and consumer sentiment, small businesses can put their business ahead of competitors.
How small businesses can become more sustainable
Making up 98 per cent of Australian businesses, small businesses contribute over $4 billion to the Australian economy and employ close to half the nation’s workforce, making them important agents of change for green growth. Tackling the global climate crisis isn’t possible without everyone’s involvement, no matter how big or small their footprint.
Small businesses play an essential role in the fabric of local communities. They provide access to essential goods, services and employment, contributing to local economic growth, and in turn, they must consider community support as the heart of their approach to sustainability.
Recognising the impact that networks can have in tackling climate change, many small businesses are finding efficiencies by joining existing initiatives to give back to the planet. For example, compared to larger organisations, more small businesses plan on supporting community-led initiatives such as recycling programs, local clean up days and tree-planting collectives like the Priceless Planet Coalition, which is committed to the planting of 100 million trees by 2025.
Tech and sustainability
In the digital age, small businesses can also leverage technology to track and manage carbon and other emissions across the value chain, from sourcing materials and manufacturing to final distribution and personal consumption. Among the popular choices from small business leaders to do so are data analytics, automation technology, and blockchain, which can enable brands to trace and share product lineage, so customers can make informed purchases.
Whichever way business owners choose to improve their carbon footprint, it contributes significantly to innovation, creating pressure for competitors, suppliers and businesses in other industries to take meaningful climate action. By taking collective climate action, Small businesses can help create a ripple effect of positive change among employees, customers and the community, meeting evolving consumer needs and wants.
Why sustainability and climate change are every small business’ responsibility in 2022
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