What is sustainability in business?

Sustainability in business refers to the management and operation of the business in a way that makes sure that the environmental and social impact are considered. It aims to help solve or mitigate ecological, social and economic problems through the strategic management of resources. By adopting sustainable practices, businesses can improve the effect it has on the external world and also achieve significant gains in return. 

If your business relies on selling products, sustainable practices could involve thinking about the production, package and distribution and how these aspects impact the society and environment. 

For example, are the products manufactured in factories where workers are paid fairly? Does the packaging use materials such as micro-plastics that are not environmentally friendly? 

What are the benefits of going green?

Businesses should pursue sustainability primarily to improve their impact on the external world. But in doing so, they also stand to gain numerous benefits including the following: 

• Improve efficiency and reduce wastage
  Adopting sustainable business practices can improve efficiency, reduce wastage and promote the long-term financial health of the organisation. Using energy more efficiently and reducing unnecessary usage can also mean cost savings in the long run. For example, installing energy efficient cooling systems or air-conditioners in office buildings can be thought of as environment-friendly but they also result in reduced electricity charges for the business. 

In a study by NTUC Learning Hub, 56% of Singapore business leaders said having sustainability strategies created a positive corporate image and 53% believed it fuelled business innovation.

• Improve hiring and talent retention
  Much like the benefit of attracting new customers, getting recognised for sustainable practices in your business can also have indirect benefits in hiring and talent retention. We are seeing more job seekers prioritising sustainability, social and environmental commitments as important criteria in a potential future employer. At a time when hiring and retaining talent is becoming more difficult, this is one way that SMBs can gain an advantage over other employers.

More than 50% of employees surveyed in a survey by JLL said that they would consider a socially and environmentally responsible company as a future employer between two equal offers.

• New green investments and funding
  Businesses that undertake sustainability-related initiatives and green projects may also find new opportunities to raise funds. SMBs in Singapore can apply for sustainability grants offered by various government-affiliated agencies such as the National Environment Agency (NEA), Building and Construction Authority (BCA) and Monetary Authority of Singapore (MAS). For example, the Energy Efficiency Fund offers five grants which include a 50% support for energy audits, design workshops for improving efficiency for new facilities and 70% funding for investment in energy-efficient technologies.

NEW GRANT: The Energy Efficiency Grant (EEG) helps businesses in the Food Services, Food Manufacturing or Retail sectors in Singapore with up to $30,000 funding support in adopting energy-efficient equipment including air-conditioners, refrigerators, LED lighting and water heaters among others.

How SMBs can get started on their sustainability journey 

Sustainability measures don’t necessarily have to be expensive or resource-intensive. If you are keen to implement sustainable practices and are not sure how to begin, you can start with some simple steps. 

For example, one of the most basic measures to adopt is to go paperless. Almost every aspect of running a business, from invoicing and payment to tracking inventory and employee engagement has a digital version today, especially in the form of third-party SaaS tools. 

Even communication and collaboration between team members can be carried out completely digitally with the use of tools like Microsoft 365 Business and Google Workspace, which allow users to view, edit and share files in real time. 

Remote and hybrid work are becoming more popular among employees, and SMBs can also make full use of tools like Teams UC Direct Connect to keep their on-site and remote employees in sync. This will in turn help reduce travel, overseas flights and minimise their carbon footprint.