In today’s world, having an embedded sustainability strategy in your overall strategy is a business imperative. Mid-sized businesses have a unique opportunity to make a significant impact on the environment while also reaping substantial benefits.
Here are some actionable strategies to help reduce your carbon footprint and enhance your business’s sustainability. These are not exhaustive, and your business should consider these in conjunction with what is relevant to you.
Measure your carbon footprint
The first step in reducing your carbon footprint is understanding it. Utilise carbon calculation tools or your advisers to measure current emissions. This will help identify key areas for improvement and set a baseline for tracking progress.
Swap to renewable energy
Transitioning to renewable energy sources such as solar or wind power can drastically reduce your carbon emissions. Installing solar PV behind the meter at your business will provide long-term savings on energy bills and reduce emissions, though it does require initial investment. You can talk to your electricity retailer about sourcing green energy if you’re not in a position to install renewable energy options.
Enhance energy efficiency
Energy-efficiency reduces energy usage lowering costs and reducing emissions. Some examples include upgrading to LED lighting, optimising heating and cooling systems, as well as using energy-efficient equipment. For larger energy users consider an energy audit to identify equipment and processes where energy reductions can be made. These changes can lead to immediate cost savings and a smaller carbon footprint.
Reduce waste
Focus on recycling, composting and reducing single-use plastics. Not only does this help the environment, but it also reduces waste management costs significantly.
Optimise your supply chain
Work with suppliers who prioritise sustainability and look for ways to reduce emissions in your supply chain. This could include optimising logistics, leasing buildings with energy, emissions and waste strategies, reducing packaging, and choosing local suppliers to cut down on transportation emissions.
Engage your employees
Leverage the skills, knowledge and passion in your employees to deliver on these strategies, and by involving them in the design and prioritisation of your actions to reduce emissions you’ll build engagement and greater employee satisfaction.
What are the benefits of making change?
So, why implement some of these practices? Here are some of the benefits reducing your carbon footprint can have for your business:
Cost savings
Energy-efficient practices and waste reduction can lead to significant cost savings. Lower utility bills and reduced disposal costs are just a couple of examples.
Improved brand reputation
Consumers and clients are increasingly favouring businesses demonstrating a commitment to sustainability. By reducing your carbon footprint, you can enhance your brand’s reputation and attract environmentally conscious customers.
Regulatory compliance
Sustainability Reporting became mandatory in Australia from 1 January 2025 for all Group 1 reporting entities. It’s to be rolled out over the next few years. Proactively reducing your carbon emissions ensures compliance with broader regulation, as well as enabling you to do business with customers that are required to meet their own compliance requirements.
Employee satisfaction
Employees often feel more engaged and motivated when they work for a company that values sustainability. This can lead to higher retention rates and attracting top talent who are passionate about environmental responsibility.
Market differentiation
Being a leader in sustainability can set your business apart from competitors. This differentiation can attract new customers and open business opportunities that prioritise environmental responsibility.
Building a resilient business
All businesses are exposed to climate-related risks, whether it is the risks associated with a physically warming world or the risks associated with a world that is transitioning to lower emissions. Reducing your emissions can make your business more resilient to these risks and create new opportunities.
We’re here to help
Ready to take the first step in reducing your carbon footprint? At Grant Thornton, we’ve entered into a national arrangement with Sumday to deliver carbon accounting services.
Contact us today to learn more about our carbon calculation services and how we can help your business begin their journey to becoming more sustainable.
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