It’s something we still come across in our conversations with SME owners – the disconnect between Carbon / Sustainability and Energy Costs.
Those that ‘get it’ see that the two are inextricably linked. That the practical steps to reducing carbon almost always lead to cost savings. Those business owners consider Carbon emissions as an inefficiency, be that from energy and water use, or waste generation.
The business benefits from reducing carbon emissions don’t stop at reduced costs though. Businesses with robust systems for measuring and reporting carbon and with meaningful carbon reduction plans enjoy a host of other benefits:
- They have access to greater business opportunities – the public sector and increasingly corporates are mandating that their suppliers have Carbon Reduction Plans in place.
- In some instances, they have better access to finance.
- Such businesses are seen as being progressive and forward thinking.
- Consumers, particularly the more affluent ABC1 demographic and the Millennial and GEN Z generations, are actively choosing to purchase from companies with strong sustainability and carbon reduction ambitions, and have been shown to have greater loyalty.
- Products and services with high environmental standards differentiate themselves from their competition, and can command a higher price point.
- Businesses with strong environmental performance and ambitious carbon reduction targets are better able to attract talent. Many young people are actively favouring such employers, and disregarding those with poor performance.
The writing is on the wall for businesses which don’t put carbon and sustainability at the core of their policy and decision making. Whether it is three years, or at a push five years, it some point in the very near future, it will become impossible to survive in business without.
Ewan Bent 10 Nov 22
