Sustainability and the Smart Business of Doing Good

Sustainability and the Smart Business of Doing Good

Sara Lavenduski & Jake Krolick

What is the definition of

“sustainability”?According to the UN, it’s defined as “meeting the

needs of the present without compromising the

ability of future generations to meet theirs.” Its three

pillars are environmental, social and economic, or

planet, people, profit, what’s called “the triple

bottom line.”

Companies now are focused on making less of an

impact on the planet, in order to preserve it for

future generations and leave it better than they

found it.

Socially, a company should treat its workforce fairly,

focus on diverse procurement and be a good

community member.

Economically, it should be governed properly and

practice good risk management.

That includes things like transparent accounting

practices, avoiding conflicts of interest with its

board members and executives, and never engaging

in illegal practices.

No longer is it acceptable to put profits and the bottom line before all else. A truly sustainable business is a good steward of the environment, the community and neighbors, and the governance of the company itself.

Corporations are focusing on sustainability in a big way.

• 62% of leaders said one of their priorities is to link positive contributions to society with profit seeking. - Forbes

• More than 90% of CXOs say their companies have sustainability

initiatives in place or on the drawing board. – Deloitte

• According to the 2018 BSR/Globescan survey of business leaders in charge of sustainability and corporate social responsibility, respondents identified ethics and integrity as the No. 1 reasons for pursuing business sustainability.

Why does this matter for businesses of all sizes?

Not only are you doing good for the planet and your community while

running the business in intentional ways, but increasingly, your customers

are expecting to work with sustainable businesses.

• Almost 70% of consumers think it’s important that a brand is

“sustainable.” –IBM/National Retail Federation

• 87% of consumers will make a purchase because a company advocated

for an issue they care about. – Cone Communications

• 76% of consumers will actually refuse to do business with a company that

supports a cause not in line with their beliefs. – Forbes

It’s especially important for new buyers like Gen Z, those born between 1997 and 2012.

They’ll soon make up more than a quarter of the workforce, so if they’re not buying from you yet, they will be soon. And they expect that companies they buy from operate in sustainable ways.

• Research suggests that 54% of these young adults think a company’s environmental and social efforts are very or extremely important when considering whether to purchase a service or a product. - EnergyWatch

• 73% of Gen Z are willing to pay more for a sustainable product. - First Insight

Take Notice of Generation Z

Gildan: Environmental, Social and Governance Report

• 33% of Gildan’s total energy came from renewable resources in 2020, while 88% of the supplier’s total waste was recycled or repurposed.

• $1.3 million to community projects in regions where it operates.

• Donated 350,000 masks and 150,000 articles of clothing to storm-struck communities and helped displaced employees find shelter during hurricanes Eta and Iota in 2020.

• Some 53% of Gildan employees were covered under a collective bargaining agreement, and health and safety committees represented 97% of employees.

Hanes: Sustainability documentary, “Crop to Campus”

• Released a sustainability-focused documentary called “Crop to Campus” in which three university students studied and reported on the company’s sustainable supply chain

• Support global employee base, with health & wellness, education and diversity & inclusion initiatives, with the goal of improving at least 10 million lives by 2030.

• Committed to meeting certain environmental targets by 2022, like greenhouse gas reductions, energy use reductions, and achieving 100% renewable electricity in their facilities by 2030.

• 100% sustainable cotton and 100% recycled polyester across all products by 2025, eliminating single-use plastics in all packaging by 2025, among others.

• Redwood Classics Apparel is a supplier in Toronto, and the founder & President Kathy Cheng has been sustainability-minded from the beginning, since 2009. In fact, earlier this year, the garment manufacturer released their first Impact Report which summarized their commitment to diversity & inclusion among its garment makers; reducing its environmental footprint; and sourcing ethically and locally made textiles.

• Allmade is another garment company in the industry that provides sustainability solutions; each of their shirts keeps 6 plastic bottles from ending up in landfills; they use less water; and they keep their carbon footprint to a minimum

• There are also several B Corps in the industry that have gone through that certification process in recent years. To be a certified B Corp, companies must “balance purpose and profit” and are put through a rigorous certification process that takes a deep look at the entire company to verify its sustainability.

• Many major brands have this certification, such as Ben & Jerry’s ice cream, Patagonia, Allbirdsand many more.

We have a few companies in this industry that have gone through that process recently:

• Harper + Scott in New York City

• McCabe Promotional Advertising in Ontario

• Image Outfitters in Stowe, VT, which is also committed to giving back through its iShareprogram—proceeds from each sale go back to the charity or cause of the customer’s choice.

Sustainable business ideas: a mix of social, environmental and economic

Stay educated on trends | As much as you think you know about eco friendly, sustainable products and opportunities to help in your community, you can always learn. Try speaking with larger suppliers quarterly or use ASI education and editorial research to grow your knowledge and find out about developing trends.

Support other local businesses | One of the best ways to support your community is to help out other businesses in the area. Buy local as often possible and perhaps set aside an area of your website to link to your favorite local companies. It also cuts down on logistics and subsequent emissions and waste since the products and services are in closer proximity.

Participate in holiday food or toy drives | During the holidays, encourage employees to bring in unopened non-perishable canned and boxed foods that can be donated to local food banks. Or reach out to your local chapter of the United Way to help with gifts at the holidays. These efforts show a commitment to doing good for neighbors and promotes company longevity as a force for good in the community.

Provide public transportation commuter benefits | Public transportation (trains, buses, subway) is a greener way to commute than one-passenger driving. If your company is in an area with public transportation options, encourage your employees to take advantage them by offering fare subsidies.

Sponsor a youth sports team | Chances are someone on your staff has a child on a youth sports team. By finding a local team to sponsor, you'll be able to help with the funds it needs and get publicity in exchange for your support.

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Sustainable business ideas: a mix of social, environmental and economic

Set up a collection jar | This is a way to support your community with no time commitment.

Simply choose a charity that’s important to your team and put out a jar to collect money in your

business.

Make use of secondhand finds| Setting up a beautiful office doesn’t have to mean paying top

dollar for brand-new furniture. It takes a lot of energy and raw material to make all those new

tables, chairs, couches and desks. Instead, shop for used vintage pieces to fill your offices and if

necessary, ask local restorers to refinish and repair them as needed.

Hold a company auction| Auction off extra samples that are taking up space in your offices. It’s a

simple way to raise money for a cause you care about, and employees will be more inclined to bid

when the profits go towards a philanthropic project. Also consider auctioning off work by local

artists.

Offer an annual giving allowance | Give every employee a small quarterly allowance to use for a

charity or Kickstarter campaign. A no-strings-attached annual stipend with a set dollar amount in

which every employee is able to give to a nonprofit of their choosing. Or set metrics or goals for

your team to reach. If they reach that goal give them a bonus that is meant to be given to their

favorite charity.

Implement a composting program| Ask employees and visitors to put their waste in a

composting bin, which can be emptied into a compost bin outside at the end of the day. In a

landfill, waste slowly decays and gives off gases like methane, a destructive greenhouse gas. In

the compost bin, waste decays quickly and becomes a great fertilizer.

Sustainable business ideas: a mix of social, environmental and economic

Give back by doing what you’re good at | You likely have an area of expertise that's of

value to others. Show care for the longevity of your community by teaching classes on

entrepreneurship to local residents or offer to teach a specialized skill that could be of

value to others. Nonprofits are always in need of talent, but often they can’t afford to

pay for it, while for-profit employees need opportunities to give back. Pro bono work

can be the answer to both.

Provide incentives | Every quarter, your company can select a new charity to support

and any employee who opts to donate $25 or more gets to enjoy business casual dress

for the quarter.

Create a philanthropic committee | If your organization is lacking on providing

opportunities for employees to give back to the community, consider creating a

committee that can keep the momentum moving forward. This is especially helpful for

organizations with a small HR team that can’t easily handle all philanthropically-focused

activities alone.

Give employees simple ways to donate | Connect with your payroll administrator to

see if your organization would allow employees to make payroll-deducted donations.

This is an incredibly easy way to give back a little at every paycheck.

Offer “Volunteer Time Off” | Extend volunteer time off (VTO) for your employees, or

ask your employer to include it in your benefits package. Employees will feel more

empowered to give back when they’re given the flexibility to do so.

Sustainable business ideas: a mix of social, environmental and economic

Make energy-efficient upgrades | They help shrink carbon footprints and lower a

company’s energy bills. Many simple things can be done: use energy-efficient

appliances; LED lights; automate lights with sensors; use smart thermostats; take

advantage of natural light; and supply staff with laptops instead of desktops.

Use green web hosting services | Did you know that the servers that host website

data use energy? More companies, like Google and Amazon, are now offsetting that

usage to become more carbon-neutral. Find a company to host your site that’s

committed to becoming more carbon-neutral.

Host a volunteer meet-and-greet event | If your company has enough space,

consider holding a volunteer meet-and-greet event. Invite a variety of local

nonprofits to your business to allow them to recruit new volunteers.

Do business with green firms | From software companies and food and beverage

brands to apparel labels and shipping carriers, carbon-neutral vendors can be found

across every major industry.

Buy carbon offsets | In addition to working with companies that buy carbon offsets,

you can also use “carbon marketplaces” to calculate and offset your emissions. When

choosing, it’s important to search for third-party certification and investigate where

the investments are made. Consider organizations like Cool Effect, Terrapass, South

Pole or Native Energy to calculate your company’s carbon emissions and invest in

offsets.

Sustainability and the Smart Business of Doing Good

Sara Lavenduski & Jake Krolick

QUESTIONS?

Sources: https://www.formstack.com/resources/blog-ways-to-give-back https://www.sterlingcheck.com/blog/2019/01/10-engaging-ways-your-company-can-give-back-2019/ https://www.entrepreneur.com/article/294930 https://smallbiztrends.com/2013/10/creative-ways-businesses-can-give-back.html https://www.allbusiness.com/7-innovative-ways-business-give-back-105529-1.htmlhttps://www.greenbiz.com/article/prioritizing-planet-11-ways-small-businesses-can-become-more-eco-friendly https://www.inc.com/john-rampton/10-ways-to-give-back-to-your-community.html