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Taking the first steps to becoming a sustainably focused small business

Whether you’re a new or established small business, implementing sustainable practices can help reduce your business’s impact on people and planet, manage risk, and attract more customers.

5 minute read

Climate change has become increasingly evident over the past few years. We've witnessed more frequent and severe weather events – from floods and cyclones to major droughts and fires – all occurring at volumes and frequencies far greater than what used to be normal. These events have highlighted the urgency of addressing climate change and the importance of adopting sustainable practices in all aspects of life and business. 

How sustainability could benefit your business 

In a report by the Sustainable Business Council, 71% of New Zealanders said they actively research the sustainability of a brand or product before making a purchase. And nearly half say they’ll choose a brand or product based on its sustainability practices. Sustainable credentials are a key part of customers’ purchasing decisions. 

By communicating transparently about your business’s sustainability practices and highlighting the benefits of your products or services, you can enhance your appeal with the increasing number of consumers concerned about sustainability, driving business growth while making a positive impact. Being authentic and genuine in your messaging can also help cultivate trust and avoid greenwashing, while building credibility with customers. 

Steps towards sustainability 

The hard part for small businesses is knowing where to focus their efforts first. We’ve outlined some of the first steps a business can take on their journey to becoming more sustainable: 

1. Leverage tools and data to create a plan

Tools such as the Climate Action Toolbox, created by the Sustainability Business Network, can be a great place to start mapping out your climate action plan. The toolbox encourages you to look at key areas such as transport and equipment, allowing you to identify opportunity areas where you can focus your time and effort.

2. Look at your inputs and outputs

Taking steps to minimise resource consumption and reduce waste can help reduce the environmental footprint of your business, while simultaneously improving cost-effectiveness. According to the Ministry of Business, Innovation and Employment, businesses that have policies to become more energy efficient saw a 20% reduction in electricity costs.

Some quick wins might include:

• switching to energy-efficient lighting
• installing programmable thermostats
• upgrading to energy-efficient appliances and equipment
• implementing power-saving settings on computers and other devices
• installing water-saving fixtures such as low-flow faucets and toilets
• implementing water recycling systems
• conducting regular inspections to identify and repair leaks promptly can help conserve water resources and lower utility costs

While these actions may require an initial outlay cost, over time efficiency gains can reduce overall operational costs.

Adopting waste reduction and recycling practices is the next step to having a more sustainable operation. You can start by:

• assessing what comes into the business and whether it can be reused or recycled
• repurposing packaging materials
• purchasing refurbished equipment or devices, or using a supplier with a circular business model can help reduce costs and waste while still getting work-appropriate tech for your business
• implementing a comprehensive waste management plan that includes recycling, composting, and proper disposal of hazardous materials can divert waste from landfills and conserve natural resources

3. Examining your supply chain

A significant amount of your business’s emissions may come from your suppliers and could make up to more than two-thirds of your total emissions. Begin by conducting a thorough assessments of your suppliers' sustainability practices. Tracing products from source to destination can help with understanding the environmental and social impacts at each stage of your supply chain, so you can make informed decisions to minimise adverse environmental effects.

Discuss any sustainability concerns you have with existing suppliers. This might prompt changes to their business too, increasing the positive impacts overall. Or try looking for alternative suppliers who have better sustainability credentials, which could be a great place to find both environmental and operational efficiencies.

Consider bringing some of your suppliers closer to home to help reduce your risk of disruption and lower transport emissions, while also supporting your local economy.

4. Travel and transport

Travelling to and from work or work events – such as flying to a conference – are major contributors to emissions, accounting for nearly half of New Zealand’s energy-related emissions. It’s also an area where you can make small changes that will have sizeable positive impacts for your staff, your business, and the planet.

Embracing the use of video conferencing, flexible working hours, and work-from-home days, encouraging carpooling and the use of public transport, and providing facilities to store bikes, e-scooters and the like, can significantly reduce carbon emissions. Learn more about sustainable commuting here.

If your business owns a vehicle or fleet, you could also investigate electric or hybrid alternatives. Drive Electric has some great information available on things to consider when moving to electric vehicles.

5. Staff and office operations

If you’re a small business that employs people, empowering them to participate in your sustainability efforts can help them bring valuable ideas, insights, and contributions that can accelerate your progress. Simple actions like encouraging employees to turn off lights and reduce waste by becoming paper free are all small steps staff can take towards reducing their overall consumption of resources. 

By fostering ownership of sustainability practices with your staff, your business is more likely to achieve its sustainability goals. It can also help to attract and retain staff with similar sustainability values.

6. Tracking your progress

Tracking progress towards your sustainability goals is essential for accountability and identifying areas for improvement. While internal tracking is a good start, using tools like the Climate Action Toolbox and engaging organisations like Toitū Envirocare can help provide measurable and credible proof that you’re meeting your sustainability goals.

Embracing a shift towards more sustainable business practices not only makes good business sense, but is also a part of creating a better future – one where natural ecosystems, communities, and business can thrive.

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This article is solely for information purposes and is not intended to be advice with respect to any matter discussed in it. If you need help, please contact BNZ or your professional adviser. Neither BNZ nor any person involved in the material accepts any liability for any direct or indirect loss or damage arising out of the use of, or reliance on, all or any part of the content. References to third party websites are provided for your convenience only. BNZ accepts no responsibility for the availability or content of such websites.