In today's business landscape, integrating sustainability practices is beneficial for the environment and crucial for long-term success. With regulatory pressures, investor expectations, and market trends pushing for sustainable operations, businesses must develop strategic sustainability strategies. 

Emerald Built Environments is here to guide you through this transition — across our team, we collectively have decades of experience helping companies do just this. Over this time, we have worked with companies across countless industries and sizes, and we often see the same questions arise. In this article, we address some of the top questions companies have when beginning their sustainability journey. 

Question 1: We don’t believe in climate change or global warming here, but our stakeholders are demanding a sustainability strategy. What should we do? 

Answer: Skepticism about climate change within an organization is not uncommon. However, sustainability is becoming a non-negotiable aspect of business operations — it’s not just about climate change. Stakeholders are demanding companies increase their sustainability. 

For example, a recent study by Morgan Stanley found that over half of investors plan to increase investment in sustainable companies over the next year, and most investors believe that companies should address environmental and social issues. 

Furthermore, adopting sustainable practices adds a host of benefits, like enhanced brand reputation, reduced costs, and improved business resilience. For instance, energy-efficient operations can lower utility bills, while sustainable supply chain practices can mitigate risks and improve reliability. 

Question 2: How do we set SMART goals for improving our performance? 

Answer: SMART goals are Specific, Measurable, Achievable, Relevant, and Time-bound objectives that help track and achieve sustainability targets. For example, a SMART goal could be to reduce carbon emissions by 20% within the next two years through energy efficiency measures and renewable energy adoption. Setting SMART goals requires understanding your company’s existing baseline sustainability data, deciding what you want to achieve, and creating a plan on how to achieve it. A sustainability roadmap is a valuable tool in this process. 

However, even if you know what you want to achieve, there is the question of financing. Business owners often lament, “What if we do not have a budget or infrastructure for implementation?” 

Start small and scale up. Cost-effective initiatives like energy audits, employee training programs, and recycling efforts can lay the foundation for more extensive projects. Many sustainability efforts can lead to cost savings, which can be reinvested into further sustainability initiatives. Additionally, when regularly tracking sustainability data, you can identify high-impact areas to target for initial goals. This allows you to start the process with cost-efficient changes.  

Question 3: How much does implementing sustainability throughout our organization cost? 

Answer: There is no one-size-fits-all answer. The cost of implementing sustainability varies widely based on factors such as the organization's size, industry, and specific goals. Expenses can be broken down into initial investments (like hiring a consultant), capital improvements (like upgrading HVAC to more efficient equipment or adding low-flow water faucets), or ongoing costs (such as annual GHG Reporting). And, the potential for savings may vary based on the type of business or the scale of building-specific savings (like reduced energy, waste, and water bills).

Long-term financial benefits often outweigh initial costs, with many companies experiencing a positive return on investment (ROI) from sustainability initiatives. For example, a study by NYU Stern looked at the ROI associated with healthcare provider Advocate Health swapping from single-use to reprocessed medical devices. The study found that they are expected to save $20.3 million over the next 10 years at an initial program cost of $0.5 million. 

Question 4: How can sustainability reporting help improve operational efficiency? 

Answer: Sustainability reporting involves tracking and communicating progress on various environmental, social, and governance (ESG) metrics. It helps identify inefficiencies, benchmark against industry standards, and drive internal improvements. Transparency in reporting enhances stakeholder trust and can uncover areas for operational efficiency improvements. Key performance indicators (KPIs) might include metrics like energy consumption, greenhouse gas emissions, and waste reduction rates. Tracking metrics over time is a critical part of sustainability reporting.  

Question 5: How do we create a company culture of sustainability? 

Answer: Embedding sustainability into the company's core values and daily operations is crucial. This empowers employees to embrace sustainability and see themselves as part of the solution. For example, frontline workers may identify ways to reduce waste. Procurement may identify easy-to-implement solutions to mitigate the impact of ongoing consumables (paper products, cleaning, etc.). The IT department may be able to improve data collection, reducing the reliance on paper tickets. The opportunities are endless, but employees inevitably identify impactful solutions when asked to suggest ideas.  

Creating a company culture of sustainability requires leadership commitment, employee engagement programs, and continual education. Creating sustainability committees and recognizing employees' efforts can promote a culture of sustainability and can also empower and reinforce positive employee choices. 

This helps involve employees at all levels of sustainability and fosters a sense of ownership and accountability. Diverse perspectives can lead to innovative solutions and greater buy-in for sustainability initiatives. Inclusive conversations can also improve morale and job satisfaction, as employees feel their contributions are valued. 

The Path Forward: Crafting Your Sustainability Roadmap 

Transitioning to sustainability is a long-term process requiring a strategic plan. Setting SMART goals, understanding costs, leveraging sustainability reporting, and fostering a sustainable company culture are key steps in this journey. However, one of the first steps is developing a sustainability roadmap to guide programs across the company. A sustainability roadmap helps gather and develop baseline sustainability data, develop short and long-term goals, and outline programs to achieve those goals. 

Emerald Built Environments can assist businesses in developing and implementing these plans. Learn how we can help you create a sustainability roadmap tailored to your business needs and the benefits it will provide.