Sustainability
Sustainability
Sustainability
Report 1
Source - https://www.shopify.com/blog/sustainable-business-practices
“There is a very small percentage of people and companies that hold enough wealth and power to make
impactful, immediate change,” says Sam Romero, co-founder of ethical apparel brand Selva Negra. Yet,
the planet’s fate is often delegated to the individual, downloaded onto the consumer.
Sustainability entered mainstream purview long ago, and the average person is reasonably aware of the
effects of irresponsible consumption. But impact is intangible on an individual level—and the result is a
disconnect between intention and follow-through.
Sustainable brands succeed when they can tell their story in a meaningful way for their customers.
It is the responsibility of brands, says author Toby Usnik, “to meet that individual where they are.”
Businesses—even the small ones—are looked to as leaders in the communities they serve. How do you,
as a brand, use your influence to affect change while also meeting your business goals?
Ahead, industry experts weigh in to help investigate the incongruity between intention and action. You
can also learn ways in which brands can act as role models with sustainable business practices—and
turn good-intentioned browsers into buyers.
Sustainable business practices are decisions and actions related to a brand’s daily operations,
manufacturing processes, and interactions with the world that are made with care for people, wildlife,
and the environment. These practices generally are put into place with a specific goal, such as reducing a
company’s carbon footprint or paying fair wages to factory employees.
A good sustainability goal is one that can be measured. Consumers increasingly see through
“greenwashing” (the practice of businesses making unfounded sustainability claims). Transparent and
measurable efforts to make an impact are, therefore, more effective.
Your brand can do business in more ethical and environmentally responsible ways by:
Implementing some of the sustainable business practices above may mean asking your customers to pay
more or wait longer for their orders. In theory, consumers are demanding this, but in practice, does it
work?
While 49% of US buyers surveyed by Shopify said they would be willing to pay for sustainable shipping,
that group was more likely to choose same-day or next-day shipping options. And overwhelmingly, they
named cost as the largest factor in making their decision. Another study has uncovered the same
cognitive dissonance—65% of those surveyed said they want to buy from sustainable brands, yet only
26% reported actually doing so.
In short, your customers care about sustainability and ethical consumption, but once price or shipping
times factor into buying decisions, those good intentions start to crumble.
In order to both stay true to your brand values and meet customer expectations, sustainability issues
should be approached from both perspectives.
Ultimately, what compels your customer to act depends on their own values, needs, and motivations.
Sustainable brands succeed when they can tell their story in a meaningful way for their customers.
These ideas are packed with real-world examples to feed your own sustainable business strategy—and
in turn inspire future generations of entrepreneurs to do the same.
1. Be authentic—and consistent
Proclaim’s ethical and sustainable business practices affect everything from manufacturing to shipping.
Marissa Alves/Proclaim
You need to model responsible behavior in all aspects of your business if you expect your customers to
walk the talk. First, educate yourself so you can confidently educate your customers. “I’d challenge
anyone to get curious about what sustainability means and how much of your pre-existing definition is
limited or based on old-school thinking,” says Josh Bowden, cofounder of sustainable packaging brand,
noissue.
Shobha Philips, founder of ethical intimates brand Proclaim, is taking an extra step toward
accountability. “We've worked with third parties to do a formal audit of the factory to help keep us in
line with the values that we’re trying to promote,” she says. Whether you do your own investigation or
hire an external auditor, examine your claims of sustainable business practices and partnerships to be
sure you’re walking the talk.
For Sam and Selva Negra cofounder Kristen Gonzalez, who built a brand with ethical production at its
center, it was important that other aspects of the business aligned with their overall values. “Our
packaging is 100% compostable,” says Sam. “We have come a long way from using recycled plastic to
completely removing plastic from our shipping equation.”
2. Educate
Across multiple platforms, noissue educates customers on process, materials, and causes close to the
brand’s heart. noissue/Instagram
Shobha built her brand with sustainability and ethical values at the forefront of her messaging. Her
Instagram account launched six months ahead of any actual product, which gave her time to build a
community around her cause. Her customers buy from her because of these values, and she says she’s
only had to explain her pricing a handful of times.
We have to have very open, vulnerable, and educational discussions with our audience about why these
things matter beyond our business.
Education should be built into marketing, product pages, and other customer touchpoints, especially if
your product costs more than comparable items. “Sustainability is not the most accessible or inclusive
conversation,” says Sam. “We have to have very open, vulnerable, and educational discussions with our
audience about why these things matter beyond our business.”
A dedicated page that speaks to your brand’s commitment to sustainability can educate customers on
your process and materials. Noissue uses a blog to communicate the sustainable aspects of its products
and its commitment to “championing our community of small businesses who’ve made the switch to
sustainable packaging,” says Josh.
Selva Negra
Your sustainability messaging may fall flat if it’s not landing with your specific audience. If you’re selling
vegan meal kits or solar lighting, you’re already speaking to customers that are tuned in to the benefits
of paying more for a sustainable product.
Consider other industries, though, where green aspects might not be the top selling point. If you sell
luxury footwear, your target customer may be more concerned with quality and cachet. Don’t alienate
them by prioritizing your sustainability messaging in your marketing. The sustainably-minded shopper
may be a secondary audience that you reach with targeted messaging.
Ocean Bottle partnered with compatible eco-influencers for its Ocean Stories campaign. Ocean Bottle
Peer influence has a positive effect on sustainable shopping behaviors, according to several studies. In
one example, community organizers who installed solar panels recruited 63% more neighbors to follow
suit versus those who themselves did not install panels.
Leverage your most passionate brand advocates to grow your audience through referral incentives,
explicitly asking for reviews to post on your site, and social proof (sharing user-generated content that
features your products).
Reel offers its bamboo toilet paper on a subscription model, making the switch to sustainability more
convenient for its customers. Reel
As humans, we largely resist change. And, if the countless self-help resources on the topic tell us
anything, it’s that both breaking old habits and making new ones are, for most, extremely challenging.
How do you convince a customer to switch from conventional toilet paper, shipped same-day from
Amazon, to your renewable bamboo toilet paper that’s more expensive and takes longer to arrive? Reel
made it easy for customers to develop good habits by selling its toilet paper on a subscription model. It
arrives regularly and conveniently at customers’ doorsteps, removing one major barrier to change.
Swedish Stockings incentivizes customers to recycle old socks by offering a discount toward a new pair.
Swedish Stockings
Humans are more willing to take risks, try something new, pay more, or put in extra effort if it’s offset by
reward. Here, we’re talking about two types of rewards: tangible and emotional.
Swedish Stockings produces its socks and tights from post-consumer recycled nylon, and it depends on
its customers to generate some of that raw material. While few may, out of the goodness of their hearts,
make the effort to ship their old socks to the company, many more will do so if incentivized. Swedish
Stockings offers a 10% discount on new products in exchange for recycled socks.
Emotional rewards can be achieved by creating a warm feeling in your customers when they perceive
they have made a positive impact on the Earth, other people, or the safety and health of their family.
Selva Negra uses brand storytelling to highlight its sewing staff on its website. Its customers can connect
with the humans behind production whose lives have been positively impacted by their purchases.
Noissue continues to evolve its priorities by staying in touch with its customers’ sustainable packaging
needs. noissue
“Brands are now realizing more than ever that rather than educating customers, they need to let
customers educate them,” says Toby. “To actually see and hear them, and to reflect them.” Create
opportunities for your audience to deliver feedback and join the conversation about sustainability.
Selva Negra’s founders admit they are continually making improvements based on research, feedback,
and conversations with other brands. For noissue, prioritization remains a challenge, says Josh. “We try
to get as much guidance from our customers as possible.”
In a 2019 study, Shopify interviewed 15 founders of sustainable brands who reported that the following
were the greatest challenges when it comes to running their businesses:
Manufacturing and sourcing: finding suppliers, vetting manufacturers, and the high costs of production
and materials
For Shobha, the limited selection of manufacturing partners and materials is a good problem. She knows
what she’s working with from the get-go. But for those looking to shift to more sustainable business
practices, the challenge may be much greater. “Reverse engineering sustainability is definitely harder,”
she says. “You set your business model and your margins to unsustainable practices that you’re going to
have to slowly phase out or find compromise.”
The challenges ultimately trickle down to the customer either through cost, production and shipping
delays, or availability. There are many aspects beyond the control of sustainable brands, but those who
communicate their story and mission effectively—and create value for their customer—can win in this
growing space.
Although the gap between customer intention and action is real, it hasn’t stopped businesses from
moving in the right direction. In a survey of business owners who use Shopify, 63% reported they
employ at least one sustainable practice in their businesses.
More businesses taking a stand increases collective awareness—making sustainable business practices
the rule rather than the exception. “Our industry has to shift in unison to make sustainability accessible
to everyone,” says Sam. “We have a long way to go.”
But these first steps are showing progress: one study found that among all new consumer packaged
goods (CPG), the percentage of sustainable new products introduced has increased every year since
2017, making up 48% of all new CPGs in 2021.
We all have the responsibility to minimize our impact through our choices. Collectively, businesses can
move the needle on slowing climate change and impacting consumer action. The playbook is already
written, says Toby, and brands can look to those before them who have already made the commitment.
“I encourage business leaders to simply put a stake in the ground,” he says.
As you build your business, bake in sustainably minded choices from the get-go. This sets customer
expectations and enables you to be nimble and adapt to changes in the market and the world at large.
REPORT 2
Source - https://fsc.org/en/blog/sustainable-business-practices
When 80 per cent of carbon dioxide emissions are produced by just 57 companies, it’s clear that
corporations shoulder the bulk of the responsibility for climate change. Still, every organization has a
responsibility to contribute to collective global actions with sustainable business practices that protect
the environment and life on Earth.
In addition, there are also significant business perks. More consumers are shifting their shopping habits
to buy sustainable products from companies they trust, and employees also want their jobs to prioritize
sustainability.
Companies that reduce their carbon footprint can appeal to a new customer demographic and
potentially save some costs in the process. Here are some ways businesses can operate more
sustainably.
Table of contents:
Maximize energy-efficiency
Involve employees
Sustainability is about finding and executing efficient processes that protect the planet, including its
resources, ecosystems, biodiversity, cultures, and people. It’s not a one-time solution, but a
commitment to continuous action and improvement for the greater good that limits future social and
environmental damages.
It might not seem like an obvious business move, but sustainable practices can support a business’
brand and help it reach environmental, social, and governance (ESG) targets. The business benefits are
clear, including:
Increase revenue with improved brand positioning and values. Sustainable initiatives can expand a
business’ customer base at a time when 42 per cent of consumers are changing their purchasing habits
based on social and environmental impact.
Boost resilience to evolving legislation and resource access as climate change influences government
and international regulations, as well as natural resource deposits.
Attract stronger talent and improve brand loyalty from employees with aligned values. As of 2023, it’s
estimated that 69 per cent of employees want their employers to invest in sustainability.
Most of all, sustainable commitments protect the environment and people around the globe. A
businesses’ specific commitments will vary and should focus on the business’ values and industry.
Sustainable business practices are true, continued commitments to improving processes to reduce
negative environmental and social impacts. A business has to first examine its own needs and
inefficiencies to identify opportunities to improve its sustainability efficiently.
Business needs vary up and down the supply chain and across industries, so there’s no one-size-fits-all
solution. But businesses can take these steps to help create sustainability commitments and implement
company-wide improvements:
Definite sustainability commitments and purpose. Examine the business’ partners, needs, and material
sourcing to identify unsustainable practices and how improvements can benefit business.
Align with vendors and stakeholders. Connect with business partners across the supply chain and
internal stakeholders to discuss commitments and ensure new policies are feasible and aligned with
brand values.
Set goals and a timeline. Workers likely can’t overhaul the system overnight, so a realistic timeline with
clear, actionable goals will smooth the transition and build trust for future process adjustments.
Evaluate new policies. Once new processes are set to implement, develop a plan to receive and evaluate
feedback, and track application and progress towards goals.
Establish and communicate new policies. Communicate new sustainable practices to all employees with
clear expectations, implementation support, and oversight processes to facilitate compliance.
This is a good way to identify specific business needs, but they’re not sustainable business practices
themselves. Below, explore eight specific sustainability steps businesses can take to prioritize
environmental and social good moving forward.
An essential part of sustainable business is action and accountability at every step of the production
cycle. That includes the initial processes of organizations harvesting, processing, and trading raw
materials up the supply chain until the business acquires the product.
And it’s not just about your business product, but your day-to-day procedures, too. Don’t overlook
where your printer paper comes from and the wood sourced to build office furniture.
Supply chain Sustainability Initiatives (SSIs) are specific actions that companies can implement to
support their sustainability goals early in the product life cycle.
These should consider economic and social needs, like protecting local ecosystem services and providing
fair wages, as well as long-term economic viability and governance from relevant stakeholders. Look for
supply chain risks that could negatively impact the environment, people, or businesses involved.
Company pledges: State clear corporate targets for an individual company with encouragement to adopt,
but doesn’t include implementation.
Codes of conduct: Specific policy requirements that are implemented with consequential audits. Codes
of conduct can apply internally or externally toward suppliers.
Initiative-based standards: Defines supplier verification requirements and clear compliance targets
enforced with audits.
Designation-based standards: Potential supplier registration requirements that may require verification
that a supplier or property is outside high conservation values (HCV) or high carbon stock (HCS)
requirements.
Supply chain sustainability is particularly impactful the higher up the supply chain the company is. It sets
standards and encourages compliance from all of its suppliers, creating a ripple effect across businesses
and industries.
It’s also not just loggers and mill workers that supply raw products. Implementing SSIs impacts business
decisions for other partners, including lawyers, marketing agencies, and freelance developers.
Where a business can boost sustainability and identify effective initiatives is specific to each individual
business. Organizations should start with a supply chain to identify any areas already practicing
sustainability, any unsustainable practices, and evaluate current business partners.
This will help identify areas of improvement and develop sustainability targets. Then, businesses can
explore SSIs that support its goals and compare them by impact, lift, cost, and more.
Image describes three key steps to reach adoption and compliance with sustainable initiatives in your
supply chain.
The UN Global Compact has guidance to help businesses get started, including:
Guide to Traceability
The Forest Stewardship Council© also has its own Chain of Custody Certification (COC) with specific
requirements regarding sourcing, processing, labelling, and selling FSC©-certified forest-based products.
Raw material mining and production are at the lowest link of the supply chain, and sourcing sustainable
materials, like FSC-certified lumber, creates a strong foundation for sustainability strategies.
The Stadium of Life, located in Maseru, Lesotho, is a 1,280-seater football stadium built predominantly
with sustainably sourced lumber. This structure is Africa’s first FSC-certified stadium and the third FSC-
certified project in Africa, period.
FSC-certified forests, recycled, or controlled sources. Project certification also ensures the responsible
sourcing of timber, supply chain and the promotion of environmental stewardship and community
development.”
More than a football stadium for the pros, the Stadium of Life is designed as a social centre for various
activities, including daily football practice, climate change education, gender empowerment, and more.
This supports local culture and economies as well as the environment itself.
The final design is built of 8,584 treated Eucalyptus poles to lower greenhouse gas emissions and
improve energy efficiency.
Maybe, more importantly, ESG partners expand a business’ sustainability impact. As more companies
commit to ESG standards and partnerships, it can create pressure for competitors to make their own
commitments and earn contracts.
Pressure can also build internally from stakeholders, as more than 80 per cent of investors consider ESG
factors in their decisions, and 54 per cent believe better ESG practices create stronger returns.
Not to forget additional external pressures from evolving government regulations as administrations
react to climate change. For example, the United Nations Development Program (UNDP) was built to
support global development with a priority towards sustainability with Sustainable Development Goals
(SDG).
Adopting ESG standards early helps to ensure a company meets compliance requirements and is suited
for long-term sustainability as social expectations shift.
Sustainable sponsorships can positively impact the environment and prove commitment to stakeholders,
customers, and partners. Sponsorships to campaigns like FSC’s responsible forest projects make
quantifiable differences against climate change, deforestation, and other challenges.
For example, forests provide particular “ecosystem services” that we all benefit from, including
biodiversity support, carbon storage, water purification, soil regeneration, and recreation.
FSC provides a means to sponsor preservation for these services to advance climate goals. Businesses
can even choose the forest they want to support. And as a sponsor, they can use these real metrics to
verify ESG commitments to internal and external parties.
There are several ways to improve a business’s energy efficiency. One of the first steps is to look at the
business’ buildings, including offices, warehouses, and plants.
Building features like rooftop gardens or reflective paint to improve cooling and insulation
Don’t forget to consider partnerships and whether they value energy-efficient operations. For example,
businesses can opt for sea freightrather than high-cost, high-carbon air freight for raw material and
product shipping.
Image compares types of business SSI initiatives and how to choose.
These projects consider sustainability from the beginning of construction, which might include FSC-
certified wood and the environmental impact of location and construction.
The interior benefits will be most obvious to businesses, including energy-efficient fixtures and
appliances. For example, dimmable lights with motion-activated timers that reduce usage in unused
areas.
So, before shopping for the next office or warehouse, consider what makes a corporate building green
and how businesses can reduce their operational carbon footprint.
Production often takes businesses across borders and impacts local ecosystems and communities.
Respecting these people, their lands, and their culture is essential to environmental and social
sustainability.
Firstly, workers rights to safe working conditions, fair wages, and negotiation support the local
community’s health and economy. Long-term, this helps promote community development and can
show respect for local cultures.
Indigenous communities are an important part of this, too. Indigenous Peoples are vital to a
community’s culture and the environment’s well-being as Indigenous Peoples are the best land stewards
for native ecosystems. Business operations have to respect the Indigenous Peoples’ rights and their
culture, providing access to use and manage their lands and resources.
Businesses looking for more information on a local culture or ecosystem can connect with regional
organizations regarding Indigenous rights and environmental care to learn how they can support
development.
Advance Indigenous Peoples lives
Companies have a responsibility to support the people and communities in the areas they’re operating
in. A vital part of that is workers rights, including:
Fair wages
Benefits
Rights to organize
These policies have obvious benefits that prioritize workers’ well-being, both physically with safe
working conditions and economically with fair wages and the ability to negotiate. When companies
employ large numbers of workers, this expands to support the larger community and its development.
For example, the Industrie Forestière de Ouesso (IFO) is a timber logging company operating in the
Republic of Congo, leasing more than 2.1 million hectares of forests, including 2 million FSC-certified
hectares.
The company has proposed health, safety, and fair wages to significantly improve local workers' lives,
including the Indigenous Baaka people (who are often employed by IFO). For example, IFO’s minimum
wage is EUR 173 per month – double the Republic of Congo’s EUR 82 minimum wage.
The benefits go beyond direct pay, as community growth translated into improved access to modern
healthcare and education.
IFO employees receive free hospital consultations for themselves and their families, and the
organization also subsidizes 65 per cent of the medicine cost. Even non-employees pay a subsidized 40-
60 per cent cost compared to a regular hospital.
Designing and creating green products is one of the most obvious ways to make a business more
sustainable. Typically, people associate sustainable products with sustainable businesses. So these
companies are a step ahead in positioning themself as sustainable with products that clearly align with
the value.
So, what makes a product sustainable?
Products designed for sustainability, like biodegradable bamboo dish brushes that are used for up to a
year.
Sustainably built products made of local, certified materials and energy-efficient production.
Recyclable and reusable products that are easily repurposed, reused in manufacturing, or repairable to
avoid waste at the end of their lifecycle.
However, there’s a fine line between sustainable products and greenwashing. That’s where enacting a
mix of truly sustainable practices throughout business practices and production will best benefit a
company.
Creating and promoting certified sustainable products helps expand market access and encourage
consumer adoption of responsible shopping habits.
Image highlights four key opportunities to improve sustainability throughout a product’s life cycle.
“Green” products like bamboo toothbrushes or cotton face aren’t the end-all-be-all of sustainable
business. Even large tech companies have found a way to improve their product’s sustainability with
recycled materials.
For example, Apple has made significant strides in environmental progress over the years. Currently, the
new MacBook Air uses 100 per cent recycled aluminium and rare Earth metals in its production. This
helps protect the environment while also extending the economic viability of its products with more
efficient resource use.
This is huge when considering the significant impact rare earth metal mining has on the environment
and human labour rights. Further, consider that these metals are used in smartphones, computers,
batteries, and more, so they’re with us everywhere we go.
Reduced waste improves sustainability and reduces carbon emissions, but low-waste processes can also
cut business expenses. A circular business model allows businesses to decrease disposal costs with less
waste overall and reduce material costs with recycling models.
Globally, 9 in 10 companies are moving toward circular business models to reduce waste and prioritize
repair and recycling in their product cycles. Of course, some of these savings are reinvested in the
recycling and repair process itself.
Providing means for consumers to repair their products also centres on long-term lifecycles to
discourage overconsumption and waste. Depending on the product, businesses might sell parts online,
offer DIY repair kits, or provide certified repairs via internal repair techs or external repair partners.
Beyond the product, consider packaging. Businesses can opt for recyclable packaging, but prioritizing
and promoting reuse is even better.
For example, opt for a nicely designed, plain glass jar instead of a plastic bottle. Then, make the label
easy to remove and provide a reusable lid so eco-conscious consumers can repurpose the container in
their homes.
Packaging Easter eggs like hidden messages under the label or snarky reminders to recycle can also
promote end-of-cycle sustainability by users while providing flair to boost branding.
Some of the largest companies in the world have made huge strides to improve their operating
sustainability, but businesses don’t have to be a billion-dollar company to make a difference.
One of the top choices brands have made is to cut plastic in their products and packaging where
possible. Google’s product packaging is 99 per cent plastic-free, and they’re aiming for 100 per cent by
2025.
Their product manufacturing also limits net-new plastic. Currently, 34 per cent of Google consumer
products use recycled plastic – a number they’re aiming to increase to 50 per cent by 2025.
This is essential because only 9 per cent of discarded plastic is recycled. That’s a whole lot of plastic in
our landfills, which takes decades to break down and ultimately leaks microplastics and other toxins into
our environment.
Team buy-in is a must-have for effective sustainability initiatives. Luckily, most employees are thrilled by
eco-conscious employers and want to do their part. It’s the employer’s job to clearly communicate
initiatives, processes, and expectations to keep everyone on the same page.
In-office programs like washable communal coffee mugs instead of disposable cups make it easy to
participate. Consider how offices can roll out additional practices, like bike-to-work and work-from-
home incentives to reduce emissions by as much as 54% per worker. Employers could also offer
recycling and compost bins to increase in-office sustainability.
The goal is to continue improving office programs over time and celebrate the small wins as a team.
Regular internal communications can also encourage staff to reduce their personal energy use at work
and home. Consider reviewing progress on company-wide sustainability initiatives at regular all-hands
meetings to show commitment and keep sustainability top of mind.
Sustainability is a team effort, and training can help organize a team around sustainability initiatives and
make the action steps for progress clear.
There are several ways companies choose to train employees, like Telefonica’s mandated training
course for all employees directly involved with its Environmental Management System (EMS) operations.
The company also maintains an oversight committee that interested employees are welcome to join.
Committees, team training, coordinated volunteer days, and clearly-stated internal policies organize the
team, so sustainability is second nature and a core aspect of the job.
Reporting is a key aspect of any sustainability initiative. Not only does it validate that the business’
efforts are effective (or that they need refining), but it’s a great opportunity to share success with
stakeholders, consumers, and employees.
Businesses can start sustainable practices anytime, but sustainable business initiatives require a clear
goal, action items, and means of measuring progress over time.
This allows leadership to clearly communicate expectations across the organization. It also provides a
roadmap to track progress, identify roadblocks, and pivot as necessary.
Businesses can also adjust strategies as they go considering new research, products in development, and
business interests.
Set sustainability targets, goals, and case studies
Sustainability reports can be so much more than “we enacted X and saw Y benefit.” Reports dig into
progress, compare these metrics against business goals, and help identify opportunities to further
sustainability initiatives.
These are also great content for the business website as a whole. For example, if a business found that
sustainable packaging and promoting recycled materials in its products increase sales by 8 per cent,
that’s a great takeaway for social media, stakeholders, and other industry leaders.
Case studies about specific ways the organization improved business sustainability or partnered with a
particular vendor or organization also make for good content that can attract new clients or employees.
An annual report is a good place to start, but consider other opportunities to track initiatives and
communicate all of the good the business is doing.
REPORT 3
https://www.fibrenew.com/blog/the-benefits-of-running-a-sustainable-business-with-examples-from-
global-
brands/#:~:text=Cost%20Savings%20Over%20Time:%20Believe%20it%20or,enormous%20savings%20th
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https://www.indeed.com/career-advice/career-development/sustainable-businesses-examples
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