Investing in workplace sustainability to futureproof your business Keith Tully, a partner at Real Business Rescue and company insolvency specialist, explains how you can futureproof your business by working sustainable initiatives into your business model and investing in achieving environmental targets.
Workplace sustainability is when an active effort is made by a business to minimise disruption to the environment through the services that it provides or products that it delivers. Sustainability is factored into most decisions, such as preserving natural resources by exploring sustainable alternatives or introducing a work culture geared around sustainability.
Sustainability can be woven into each area of business operations, from the formation of a supply chain to production, manufacturing, and fulfilment. This is the same for a service-based business where sustainability can steer decisions, such as partnering with suppliers, adopting energy-saving strategies, and supporting environmental initiatives.
Why investing in workplace sustainability is beneficial for your business
As we experience unprecedented climate change and lament the loss of natural resources, the detrimental impact of humans on the environment is all too evident. To tackle climate change and reverse human damage to the environment, governments around the globe have set net-zero targets to decarbonise sectors and reduce emissions. To help achieve these targets, businesses around the UK must establish how they wish to contribute.
In light of this, more businesses are being pushed to disclose their environmental efforts, or lack of, such as reducing greenhouse gas emissions, investing in renewable energy, and offsetting carbon emissions. Sustainability must be on every roadmap for the future to reduce long-term environmental impact, improve bottom lines and fulfil stakeholder expectations. Research from Grant Thornton’s International Business Report (IBR) survey shows that sustainability is now a major priority, with more than six in 10 mid-market businesses (62 per cent) believing sustainability to be as important or more important than financial success.
According to the survey, the top six reasons why companies prioritise sustainability include:
· Increase in regulation and non-financial reporting requirements
· Concerns around attracting, motivating, and retaining employees
· Political prioritisation of sustainability and corporate responsibility
· To improve access to capital and investment
· Desire for the business to have a sustainable recovery from the Covid-19 pandemic
· To improve operational efficiency and lowering costs
A company’s approach to environmental, social and governance (ESG) gives a measure of risk management which lenders take into consideration when assessing finance applications.
Scott Wilson, director of ESG and sustainability at Grant Thornton UK, explains: “A company’s approach to sustainability can be used as a proxy for risk management: the likes of banks or private equity firms will look at how a business is addressing environmental issues, for example, when deciding whether to lend or invest.”
More recently, larger businesses are also setting ESG criteria when tendering for contracts to maintain high sustainability standards and for supply chain due diligence. There are growing
expectations for businesses to trade responsibly and disclose their sustainability reports – not just by shareholders, but also by the customers that they serve.
Building a sustainable workplace
Building a sustainable workplace can be rewarding for employees and stakeholders alike and there are many ways through which businesses can practice sustainability.
– Reducing carbon footprint
Tackling heat waste – Substantially reducing energy consumption by better regulating office temperature through the central management of office controls and aiming for a target temperature that represents a year-round comfortable base.
Reducing power usage – Encouraging behavioural changes to reduce power usage and mitigate technology settings to eliminate the unnecessary use of energy.
As the UK is overwhelmed by the energy crisis, the time is ripe to review energy consumption, including green procurement policies.
– Reviewing procurement strategy
Streamlining suppliers – Refining providers to ensure consistency of specification, service, value for money and sustainability in supply chains.
Reviewing the use of floorspace – Ensuring offices are used efficiently by redoubling efforts to reduce storage and maximise the use of floorspace.
Continuing use of digital comms platforms – Continuing use of digital comms platforms to minimise non-essential travel and reduce carbon footprint.
Standardising office fit-outs – Standardising office furniture and equipment to increase usage, and reuse and redeploy where required. Refining the selection process to ensure that specification decisions are made with renewable materials to minimise waste.
– National calendar of environmental events
Promoting environmentally-focused events – Launching a campaign to raise awareness of environmental events and tie this into corporate social responsibility (CSR) efforts.
Green travel plan – Developing a green travel plan model and implementing this across your office network.
The road to building a sustainable business can be fruitful for businesses and futureproof them as legislation raises the bar for sustainability reporting and the public calls for more transparency.
