Introduction
For many small businesses, sustainability feels like an optional upgrade. It’s something to pursue “when we have the budget.” Green practices can seem like a luxury instead of a necessity with high required upfront costs and time investments. Surprisingly, the reality lies opposite. Environmental inaction is often far more expensive in the long run with rising energy bills and regulatory penalties to supply chains. Slower turnover rates can cause a loss in customers, draining the resources of a small business without the profit from consumers. Nowadays, everything has a consequence, and it’s up to the small businesses to choose the best pathway for them.
Myth: Sustainability Too Expensive?
A very common myth amongst small businesses is that sustainability efforts require massive investments. The reality is as follows: impactful changes are low-cost or cost-saving overtime.
- Incandescent lights → LED lights
- Optimizing heating and cooling systems → Higher efficiency, increased performance and lifespan
- Plastic → Paper reduces microplastics and is easier to dispose of (usage of recycling)
- Consolidating shipments → less packaging waste, less carbon emissions from transportation
The Real Costs of Doing Nothing
- Higher Operational Expenses
Inefficient systems such as outdated HVAC or excessive water use can lead to inflated utility bills. Over time, these recurring costs outweigh the initial price of efficient upgrades.
- Climate-Driven Disruptions
Physical damages from wildfires, floods, storms, and heatwaves can lead to unpredictable costs and lost revenue. Small business operations are heavily disrupted by power outages and interrupted supply chains, with a potential outcome being permanent culture.
- Supply Chain Vulnerability
All businesses rely on raw materials and product components, however, when they’re delayed from natural disruptions, small businesses may not be able to keep up with the increased costs or frustrated customers, harming revenue and reputation.
The Power of Incentives
Governments around the world are tightening regulations around waste management, emissions, and energy use. Keeping track of new legislation can be difficult for small businesses, often getting blindsided by fines and facing new reporting obligations. Large corporations backed by their legal teams and compliance departments are able to capitalize on financial incentive opportunities, acting early on tax breaks, utility rebates, or local grants. These programs that offer affordable, clean alternatives are overlooked by small businesses, resulting in a loss in the long run.
Inaction Has a Price Tag
For small businesses, the most expensive choice may be doing nothing at all. Imagine two coffee shops. One installs energy-efficient appliances, sources local ingredients, and offers discounts to those who use reusable cups. The other continues business as usual. The first coffee shop will experience lower utility bills, see an increase in customers as they are drawn to the eco-friendly consciousness of the shop, and gain media attraction. The second one faces higher operational costs, a loss of customers, and fines from city waste regulations. In the span of five years, the sustainable business thrives, making smart and future-ready decisions.
The future is in our hands, and it is our job to take action to make our planet greener. In order for life on earth to continue growing, we must work together to promote eco-friendly decisions. Let’s Lead Green not just for us but for the future generations to come.
References:
California Air Resources Board. (n.d.). Laws and regulations. https://ww2.arb.ca.gov/resources/documents/laws-and-regulations
Deloitte. (2023). Commercializing sustainable supply chains: From ambition to action. Deloitte Consulting. https://www.deloitte.com/dk/en/services/consulting/research/commercializing-sustainable-supply-chains-report.html
U.S. Department of Energy. (n.d.). Funding & financing. U.S. Department of Energy. https://www.energy.gov/funding-financing