The Harvard Business Review has identified sustainability as the next 'mega-trend' for business and is something that business owners can't afford to ignore.
This means that thinking about the environmental impact of your business
has never been more important. You need to explain and justify what you are doing to minimise your impact on the environment to your customers, your stakeholders and even your staff.
It also means that there's a host of opportunities for companies willing to take the initiative. You could be better placed to win new contracts and develop into new niche areas before they become mainstream. You could also lower your operating costs by reducing energy wastage.
Following the Lloyds TSB REDUCE framework and embracing the green agenda, could help your business minimise the risks and maximise the opportunities in an increasingly low carbon, resource efficient and sustainable economy.
RESOURCE efficiency
On average, 20% of energy that businesses buy is wasted. Cutting down on waste alone could save UK industry £3bn.
• Does your company have a strategy to improve overall resource efficiency?
• Are you thinking about reducing energy consumption? Have you re-negotiated your energy tariff recently?
• Are you planning to reduce, reuse or recycle your waste to cut business
costs?
ENGAGING employees
The Corporate Leadership Council, which offers members a set of unique
services and tools to assist human resources leaders, reports that engaged employees try 50% harder, perform 20% better and are 80% less likely to leave your company.
• How are you engaging your people to drive your business in the right
direction?
• Does your company have a champion for environmental issues?
• Are your management involved and engaged in any sustainability activity?
DEVELOPING new business
Research shows that the market for green business-to-business products and services in the UK will continue to expand rapidly over the next three years.
• Could these new markets, products, and ways of working give you an edge over your competitors?
• Are the resources used in your goods or services environmentally friendly?
• What additional doors could you open as a result of sustainability – for
example, new products, new markets?
• How are your competitors reacting to these new opportunities?
UNDERSTANDING risks
Increasing numbers of businesses are filtering suppliers on the basis of their sustainability credentials – as well as cost. Are you ready to respond to that challenge?
Are you aware of current and new legislation? Do you know where to go for up-to-date information? Are any of your existing contracts at risk?
• Is your business ready to manage the increasing physical impacts of climate change?
• Could you be impacted by changes in the availability or price of resources?
• Is your company covered by the Carbon Reduction Commitment Energy
Efficiency Scheme or any other emission reduction schemes?
COLLABORATION
More and more businesses are collaborating with each other – with
government and non-government organisations, like the May Day Network and Global Action Plan. Many have started collaborating with their supply chain partners and customers and have reaped real benefits.
• Who could you be working with?
• Are there networks in your area where you could find out what local
businesses are doing and where you can start to build brand reputation?
• What relevant business networks or trade bodies is your company involved with and what is their focus of activity?
ENGAGING stakeholders
How are you planning to engage your supply chain, your customers and other stakeholders around this agenda? And what are you doing already? Are you doing this as well as your competitors?
• Do you understand how your supply chain, or a supply chain that you are part of, is going to be impacted by this agenda?
• How can you ensure you are prepared for change?
• What other stakeholder opportunities or issues are there for your company (investors, consumers, local community associations)?
SMEs up and down the country are reaping the rewards of pursuing a sustainable agenda. Many are achieving genuine efficiencies that make a real difference to their bottom line. Many others are securing new contracts and, by spotting a gap in the market, growing their business.
By following the REDUCE framework you could change business behaviours, benefit from efficiencies, engage employees, make your business more attractive to prospects and reduce your impact on the environment.
Lloyds TSB Commercial has a number of trained local business and environment managers throughout the UK. Their role is to provide guidance on the risks, issues and opportunities presented by the sustainability agenda.
Karen Cook, head of sustainable development and community enterprise for Lloyds TSB Commercial, demystifies the green agenda here.
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.
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