Sustainability is a massive opportunity for businesses. The Harvard Business Review says it's the next 'mega-trend' similar to how electrification, the rise of mass production and globalisation presented a fundamental shift in the way that businesses compete.
Those companies that respond fastest and most effectively are set to win by securing new business, protecting existing contracts and potentially diversifying into new markets.
At Lloyds TSB Commercial, we could help by demystifying the green agenda and helping SMEs undertake good, sustainable business planning through a green lens.
Here's my quick guide of things worth considering.
Make it your policy
Pressure from shareholders, government and consumers seeks improved and transparent sustainability across all business areas. More and more contracts are stipulating that suppliers demonstrate green credentials because big businesses and local authorities often have targets to meet and these are passed down the supply chain.
If you don't provide a sustainability policy, in many cases, you simply won't be considered so now is the time to start putting your commitments down on paper.
It can be very challenging for a small business to be suddenly faced with new clauses in what had often previously been a revolving contract. So, to help you deal with that, we've provided a free online tool which will help you produce a sustainability plan.
Reduce your risks
Rising energy costs, supply chain issues and increased resource pricing can impact on your ability to operate competitively. Addressing these through a sustainability policy can reduce business risk.
Be really nimble
SMEs can steal a march with their agility and responsiveness to sustainability requests – you will often react much quicker than larger organisations.
Find a niche
Many SMEs have discovered niches in markets created by the green agenda and successfully exploited them. One great example is Jutexpo, which saw an opportunity for a green alternative to plastic carrier bags and turned that into a big success. Their re-usable jute bags are now sold in all the major supermarkets.
Bottom line benefits
Sustainability is good business. It's a route to profitability.
Reducing costs and overheads as part of a recession strategy can go hand in hand with sustainability. The opportunities in energy are clear, for example EDF research shows that the average UK business spends 20% more on energy than necessary.
That's a massive environmental waste, sure, but it's also a massive cost to the bottom line. Becoming more energy efficient can give you big operational savings.
We can help
Our sustainability approach is helping businesses prosper and grow by supporting them on the move to the UK green economy.
We have 500 business and environment managers across our network. We provide seminars and business events and we've introduced our REDUCE framework to help businesses create a meaningful sustainability plan – whether that's around driving costs down or looking for opportunities.
Top tips for creating sustainable business benefits:
1. Look for quick wins – colour coding plugs, for example, so staff can quickly identify which can be switched off. Simple, but very effective.
2. Think about your waste – how much is spent on waste management? Landfill tax is very expensive so consider recycling or reusing waste as an alternative. Did you know there are business-to-business waste exchange companies who can match your waste to another company who will buy it from you as a raw ingredient of their business?
3. Have a strategy - create your sustainability plan now, so it's in place when you need it. Otherwise you'll end up rushing it when you suddenly need to create one to a tight tender deadline. Get help creating it with our free online tool.
4. Study your competitors - look at what they're doing, especially the larger organisations in your sector – what can you learn from them?
If you would like to read more articles like this, why not sign up to be a member of the Guardian Small Business Network. Filled with the latest small business news and features, plus updates of up and coming events around the country, the small business network provides fresh thinking for small businesses.
Lloyds TSB Commercial is a trading name of Lloyds TSB Bank plc and Lloyds TSB Scotland plc and serves customers with an annual turnover of up to £15m.
This content has been provided by Lloyds TSB, part of the Lloyds Banking Group.
The Lloyds Banking Group includes Bank of Scotland plc and a number of other companies using brands including Lloyds TSB, Halifax and Bank of Scotland, and their associated companies.
This content is brought to you by Guardian Professional. To receive more like this you can become a member of the Small Business Network here.
We'd love to hear your views and thoughts in the comments but please remember not to disclose personal identifiable details.
