Small Business Owners Support Action on Climate and Energy

The US small business community overwhelmingly believe in the veracity of climate change. They see this as a threat to their businesses and they endorse government regulatory efforts to reduce power plant emissions.

The views of the small business community on climate and energy issues is crucial because they are both a powerful economic engine and the primary source of job creation in America. The sheer size and scope of the small business community make their contributions to climate mitigation and adaptation absolutely essential.

These are the findings in a June 2014 American Sustainable Business Council poll of 555 small business owners. For the purposes of this study small business are defined as those with between 2 and 99 employees. 

Primer on Sustainability in Small Businesses

There are a number of things that small businesses can do to be more environmentally sustainable.  This both lowers costs and enhances the reputation of your enterprise. A growing number of companies are reducing the environmental impact of their businesses, so engaging sustainability is also about remaining competitive. Increasing consumer interest in sustainability makes it ever more important for small businesses to be able to meet burgeoning demand now and in the future.

Why Small Businesses are Engaging Sustainability

The size of the market opportunities is driving small businesses to engage environmental sustainability, as are concerns about survival and long term success. In addition to improving profits, reducing costs and mitigating against risk, engaging sustainability affords opportunities for collaboration and innovation.

While big corporate sustainability initiatives steal headlines, the small business community is also going green. For example, operational efficiency practices are increasingly commonplace even in small companies.

The rationale for engaging sustainability is largely about meeting and anticipating consumer demand. This translates to more customers, increased sales, higher revenues and even price premiums. Sustainability contributes to the crafting of a unique selling proposition, it helps to differentiate a company from the competition, and it offers a competitive advantage. Sustainability provides a host of reputational benefits. The latter contributes to word of mouth marketing, greater trust, improved loyalty, and enhanced employee recruitment and retention.

Why Small Businesses are Well Suited to Sustainability

Small businesses and sustainability are a perfect match. Yet their are a number of reasons why they are not adopting sustainability at the same rate as their corporate counterparts. Just like their larger corporate cousins, small businesses should adopt sustainability policies. There are good reasons why it is easier to engage sustainability in a small business as compared to a large corporation.

While they may not have the deep pockets of big corporations, a small business is more nimble and able to change directions more quickly than large enterprises.

Why Small Businesses are Not Engaging Sustainability

Many small businesses fail to realize the value of sustainability and as a consequence they are not adopting sustainability as quickly as large corporations. Despite the convincing business case for sustainability, small businesses have yet to engage in large numbers. Small business owners commonly perceive sustainability to be overly complex and too costly. The result is that small businesses are often absent from discussions about sustainability.

The inaction of the small business community does not appear to be due to disinterest in environmental responsibility. According to a Lloyds’ survey, 61 percent of small and medium business leaders practice sustainability at home, while only 43 percent incorporate eco-friendly practices at the office.

The Green Economy Outpaces the Conventional Economy: Small Businesses Need to Get On-Board

There are growing opportunities for sustainable businesses. During the period from 2008 to 2011, the green economy in the US has outpaced the conventional economy by a considerable margin. This is particularly true of the the food, personal goods, and construction markets.

The rate of growth for green business products and services are rising faster than conventional goods in the US. This figure is even more remarkable given the fact that this steady growth occurred throughout the depths of the recession.

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Small Businesses are Going Green in America

A new report from the nonprofit, Green America, shows that a record number of small businesses are going green. The report is titled, "The Big Green Opportunity for Small Business in the U.S."

The findings in this report are welcome news as the small business community has been understandably slower then corporate America in adopting more sustainable business practices.

Here are some of the survey's key findings:

Small Businesses Need to Embrace Sustainability Too

It is often assumed that sustainability is only for big corporations, however, smaller companies also need to be looking at ways of going green. Big corporations are adopting sustainability in unprecedented numbers, and CFOs are increasingly seeing the benefits. While sustainability is an increasingly necessary component of business success, it is a double edged sword that implies both opportunities and threats. These potential threats make some small business owners reluctant, however, the reality of the emerging marketplace demands a long term sustainability strategy. Costs are the primary obstacle impeding the widespread adoption of sustainability by small businesses, but in most cases the savings far outweigh any capital outlay. Whether large or small, almost all businesses can benefit from adopting a long term sustainability strategy.

10 Sustainability Initiatives for Small Businesses

Although the constraints of many small business often preclude the grand sustainability gestures of larger corporations, there are many things that these businesses can do to be more sustainable. Here is a summary of ten easy and inexpensive things that small businesses can do from Miratel:

Businesses are Combating Climate Change and Turning a Profit

All around the world, there are many sustainable success stories from companies that are seeing tremendous profit from green.

At HP, carbon reductions are now 33 percent better than in 2005, fossil fuel use has been cut by 62 percent and the water savings have increased to 89 percent. Companies like the UK's British Sky Broadcasting having reduced customers' carbon emissions by around 124,000 tonnes. Some corporations, like PUMA are committed to carbon neutrality.

Du Pont has set a goal to increase annual revenue by at least $2 billion USD by 2015 from products that reduce carbon emissions, which were already generating $731 million USD as of 2009.

According to a 2010 global survey, seventy percent of firms with revenue of $1 billion or more say they plan to increase spending on climate change initiatives in the next two years.

Nearly half of the 300 corporate executives who responded to a survey conducted for the accounting and consulting giant Ernst & Young said their climate change investments will range from 0.5 percent to more than 5 percent of revenues by 2012.

Whether to enhance brand loyalty or to reduce costs, businesses are seeing the merit of going green. More than four out of five respondents, or 82 percent, said they plan to invest in energy efficiency in the next 12 months, with 92 percent saying that energy costs will be an important driver.

Despite the challenges, the Ernst & Young Survey indicates that corporate executives are increasingly committed to taking action on climate change. The fact that 70 percent of executives said they planned to spend more on climate change programs is clear evidence of this trend.

Even in the absence of government regulations on climate change, businesses see the value of investing in sustainable programs because they see the opportunities to grow through new services and products, as well as save money through enhanced efficiency and limit risk. This is more than just public relations, it is a reflection of the market driven movement.

© 2011, Richard Matthews. All rights reserved.

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Cooperation Between Environmental Organizations and Businesses

Increasingly we are seeing cooperation between environmental organizations and businesses. All around the world, grassroots environmental organizations are teaming up with corporations in the service of the environment.

Environmental organizations have commonly pressured corporations to change. Greenpeace's widely publicized campaigns against unsustainable companies are some of the best known examples.

Other environmental campaigns are less adversarial and more inclusive. There are many strong partnerships were the business community is working alongside environmmental groups. For example, Xerox has partnered with The Nature Conservancy to promote sustainable forestry, preserve biodiversity and help minimize forest loss and degradation that contributes to greenhouse gas emissions.

Strong partnerships are forming where non-profits are putting their expertise to work guiding businesses. Some of the most productive partnerships involve information sharing between environmental groups and companies. Greenpeace has partnered with companies like Cisco and Google, Carbon Trust has put out a Green Guide for SMEs and the WWF-UK has launched its Green Game-Changers initiative for Business. The WWF is involved in training business executives for sustainability through its Sustainability Training Program. The WWF has partnered with the IMD to create a Sustainable Business Program. The WWF also provides training to business leaders through its One Planet Leaders Program The Environmental Defense Fund has the comprehensive Innovation Exchange and Ceres has been integrating sustainability into capital markets for more than 20 years.

Other campaigns work with companies to foster change from within the business community. For example, 350.org's "The US Chamber of Commerce Doesn't Speak For Me," campaign.

Various professional and development organizations support sustainable businesses. The B Corporation, certifies businesses as change agents, The ISSP, International Society of Sustainability Professionals, promotes professional development, as well as providing networking and sharing of best practices.

Although the EPA is a government organization, the public - Private cooperation that fuels its Green Power Partnership program has yielded impressive results.

Cooperation between businesses and environmental organizations is helping to produce a greener world. These partnerships illustrate that capitalism and environmentalism can converge in ways that benefit the planet.

© 2011, Richard Matthews. All rights reserved.

Related Posts
WWF-UK's Green Game-Changers Initiative for Business
IMD and WWF's Sustainable Business Program
WWF's One Planet Leaders Program
Green Guide for SMEs from the Carbon Trust