It’s a discussion that’s getting louder. As climate change makes its mark and the world wakes up to a climate emergency, the calls for net zero are ramping up. More and more businesses are getting on board. Stricter ESG (Environmental, Social, Governance) frameworks – which companies use to gauge their sustainability performance – look set to filter down from banks and big organisations. 

Very soon, companies will be required to report their progress to shareholders and customers, and startups won’t be an exception. The planet is becoming something no one can ignore. 

All three Ps are closely interlinked – and all need to be nurtured. The second P, sometimes overlooked, stands for ‘people.’ It often doesn’t get the attention it deserves, but by nurturing a happy, productive workforce (both at home and through its supply chain), ones who are paid fairly, will attract better talent who will stay with you for longer. That will only serve to boost the third P – profit – which needs to be there for obvious reasons.

But, as the UK economy fell by 0.6% in June and the Bank of England warns of an impending recession, will sustainability be side-lined as the headwinds start to blow and companies need to cut costs? 

It’s still too early to say. In the last great recession of 2008, many believed that it would be a nail in the coffin for sustainable businesses, but this was far from the case, in fact these companies generally did better.

While it’s a different world today, certain things still hold true: after a summer of rising temperatures and water shortages around the world, climate change is very much still top of mind for customers. Kneejerk cost cutting won’t go down well. While recent analysis confirmed that shoppers intend to switch to cheaper, less eco-friendly alternatives, safeguarding your positive brand perception can still give you an important edge from your competitors. 

Many experts also believe that the global focus on climate change and equity is still too important amongst investors and shareholders that companies can’t afford to side-line it. 

Secondly, a sustainability strategy goes hand in hand with innovation. Circularity and sustainability often lead to new ways of doing business which are good for the bottom line and the climate. Saving on electricity, water, and fuel, for example, could be used to make bigger sustainable investments, e.g., changes in packaging or production processes.

Of course, a small business owner’s main priority is always to weigh up costs against the return on investment. Traditional providers, for example, will always be less expensive than working with sustainable suppliers. However, prioritising cost over long-term gains can be a short-termist view: as the recent global supply chain crisis proved, there is a need for building stronger, more diverse supply chains, especially when climate change will only continue to disrupt them in future. 

In a recession numerous studies have shown that thinking long term about sustainable innovation can help a business. The key is to keep one eye on coming out of a downturn competitively, so you are first off the starting blocks. If you have to apply cost cutting measures along the way, consider their long-term environmental, social, and business impact before you enact them.

Last but not least, it’s also important to reassess your priorities in a recession. While business is of course still about making money, should it be on making as much money as possible? An ethical leader who strives for a better world will naturally be a better leader and effect positive change – not just for your startup, but for the world in general. And doesn’t that sound like a sensible strategy to have now?

5 ways to make your business sustainable that won’t cost the earth

1. Step up your environmental efforts

First educate yourself and your organisation. Climate action is a complex matter – invest in an expert to help you understand your scope four emissions (the emissions made outside of your product’s life cycle which includes your supply chain). Decide what needs immediate attention and where you can make a real difference and start from there. Also consider low hanging fruits, too such as cutting energy or water usage. 

2. Collaborate

A sustainable startup should recognise the importance of ‘thinking out the box’ when faced with big challenges and collaborating with other companies – maybe even your competitors. Two is stronger than one! 

3. Adopt ethical labour practices

It costs more to treat employees fairly and ethically, but it pays back in the long term. Consider adopting flexible working hours and hybrid policies. Instil strong diversity, equity, and inclusion policies. Pledge pay equity. Sign up to the Real Living Wage. Support the union rights of your employees.

4. Remember the power of innovation

Can you rethink the formulation of a product, or use innovative new ways that are better for the environment? While innovation takes time and money, these investments pay off in the long run. 

5. Consider volunteering

You may not have huge resources, but you can help social causes, charities, and non-profits by donating its services – and in turn you will positively impact your brand by doing so. Reach out to the organisation you have in mind and ask them how best to help. 

Helping local causes boosts your company’s sincerity in the eyes of your customers and staff. Involve your staff by giving them the option of taking time off to volunteer or get involved in community fundraising and events.