Institute of Sustainability Studies

EU delays key sustainability reporting standards

Bronagh Loughlin — Tue, 05 Mar 2024 11:10:45 +0000

EU delays key sustainability reporting standards

Tags

European Union

Sustainability Reporting

Sustainability

Business

Topic

Sustainability Reporting

The European Union, in a significant policy shift, has postponed the implementation of critical sustainability reporting standards, a move impacting global and EU-based companies.

This delay affects the enforcement of the Corporate Sustainable Reporting Directive (CSRD), originally set to elevate transparency and accountability in environmental and social governance.

The decision underscores the complexities in standardising corporate sustainability disclosures and reflects the challenges in balancing regulatory objectives with business realities.

This move prompts a reevaluation of corporate sustainability strategies, stirring varied responses from stakeholders across the economic and environmental spectrum.

Background on Corporate Sustainability Reporting Directive

The CSRD represents the EU’s ambitious initiative to enhance transparency in corporate sustainability efforts.

It aims to extend the scope of sustainability reporting beyond the current Non-Financial Reporting Directive (NFRD), mandating a comprehensive disclosure framework for companies on their environmental, social, and governance (ESG) activities.

The CSRD’s objective is to standardise sustainability reporting, making it more consistent, comparable, and reliable across the EU, thereby aiding investors, consumers, and other stakeholders in making informed decisions based on the sustainability performance of companies.

This initiative is pivotal in driving corporate accountability in addressing global sustainability challenges.

Rationale Behind the Delay

The rationale behind the EU’s delay in implementing the Corporate Sustainability Reporting Directive (CSRD) is multifaceted. Rapporteur Axel Voss’s statement in the ESG Today article provides insight into this decision.

Voss mentioned that the postponement by two years for sector-specific standards under CSRD aims to give the European Financial Reporting Advisory Group (EFRAG) adequate time to develop quality standards, and for companies to implement them effectively.

He emphasised the need to reduce bureaucracy that companies have faced in recent years, marked by crises ranging from the COVID-19 pandemic to economic inflation.

This perspective highlights the EU’s approach to balancing advancing corporate sustainability while considering the practical challenges businesses face.

Impact on Global and EU Companies

Reuters reports that the delay in implementing CSRD offers companies more time to adjust to new sustainability reporting requirements.

This impacts their strategic planning and resource allocation for meeting these standards, particularly for businesses in specific sectors and those outside the EU.

The postponement, while providing temporary relief, may also lead to prolonged uncertainty, influencing companies’ approaches to sustainability and ESG (Environmental, Social, and Governance) disclosures.

This shift necessitates ongoing vigilance by businesses to stay aligned with evolving regulatory landscapes.

Responses and Criticisms

The EU’s decision to delay the implementation of the CSRD has elicited mixed responses. Some business groups have welcomed this move, viewing the additional time as crucial for adequately preparing for the new reporting requirements.

Conversely, environmental advocates and sustainability experts have expressed concerns, arguing that the delay could hinder progress in corporate accountability for environmental and social impacts.

This divergence in opinions underscores the complex interplay between advancing sustainability goals and addressing the practical challenges faced by businesses in complying with evolving regulatory standards.

Future Implications and Conclusion

The postponement of the CSRD by the EU could have far-reaching implications for the future of corporate sustainability.

While it provides companies with more time to prepare, this delay may also slow the momentum towards enhanced transparency and accountability in environmental and social governance.

This decision sets a precedent for the balance between regulatory aspirations and practical business capabilities, possibly influencing future policies and corporate strategies.

On the one hand, while this move may slow the progress towards greater corporate transparency in environmental and social governance, on the other, it offers an invaluable opportunity for organisations to proactively prepare for the upcoming standards.

This additional time allows companies to refine their sustainability practices, potentially avoiding the rush and potential fines associated with non-compliance.

It’s a strategic period for businesses to align their operations with future requirements, turning the delay into a preparatory advantage for long-term sustainability goals.

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Most Irish SMEs plan to increase or maintain investment in sustainability

Bronagh Loughlin — Tue, 05 Mar 2024 10:55:09 +0000

Most Irish SMEs plan to increase or maintain investment in sustainability

Tags

Business Sustainability

SMEs

Topic

Business

Irish Water, Uisce Éireann published its SME Sustainability Sentiment Survey, which found that 94 per cent of Irish SMEs plan to increase or maintain their investment in sustainability.

This represents nine out of 10 Irish SMEs that plan to keep their investment in the next 12 months to meet the demand for more sustainable services and products.

About the survey

The research conducted by Behaviour and Attitudes (B&A) inspired these developments, and over 350 SMEs were interviewed.

The purpose of the survey was to get their opinion on the importance of investing in sustainability for their customers and businesses. In addition, to examine the barriers that currently exist to investment in sustainability.

What were the results of the survey?

Most of the survey respondents (73 per cent) said they intend to maintain the current levels of investment. However, over 1 in 5 responded that they would expect to raise their spending in this specific area.

The research determined that satisfying customers’ desire for more eco-friendly services and products is now the second (43 per cent) critical key driver influencing SME decision-making concerning investment in sustainability. This ranked behind cost savings (55 per cent).

Over half of the Irish SMEs (52 percent) shared they feel operating a responsible business attracts more customers too. Cost concerns and rising prices continue to be stand-out barriers to investing more in sustainability initiatives and strategies for 72 per cent of SMEs.

Lack of education or information and Government support also remains a barrier to investment for 45 per cent of SMEs.

The survey also uncovered that most Irish SMEs (64 per cent) are unaware or uncertain as to how to access support, including financial guidance and information to achieve sustainable savings.

What does the research mean, and how is Uisce Éireann supporting Irish SMEs?

This research gathered by Uisce Éireann reveals that Irish SMEs recognise the importance of providing sustainable services and products to their customers. With this in mind, most of them are planning to either continue putting money into sustainability or increase their investment to introduce new sustainable solutions and practices.

In saying that, the survey did highlight there is a lack of guidance and education for businesses surrounding sustainability.

Nine out of ten respondents shared they do not know what to do or how to access support.

Uisce Éireann is trying to tackle this by offering a suite of easy-to-access and free resources to assist SMEs in becoming more eco-friendly and cutting costs when it comes to the use of water.

This includes their Annual Certification Scheme and Water Stewardship Programme.

The decision to launch these resources comes as they recognise the challenges facing SMEs and their concerns around sustainability.

They have said SMEs understand the value of water to their business but that they desperately need to become more water-aware.

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Tips to build a company’s reputation for sustainability

Bronagh Loughlin — Wed, 10 Jan 2024 11:40:37 +0000

Tips to build a company’s reputation for sustainability

Tags

Sustainability

communication

Topic

Business Sustainability

Sustainability and reputation are very much connected. Managing your social and environmental impact can have various effects on your business and your brand scaling, from having a unique market positioning to ruining the reputation of the organisation.

How to build a sustainable brand?

Building a sustainable or eco-conscious brand is no easy task. Whether you are just starting a business and want to be more eco-friendly, or you are already established and want to become more sustainable, it can be challenging.

However, it is achievable which is why many businesses across the globe are harnessing more green credentials. In saying that, sustainability cannot simply be a brief thought, but time and dedication must go into it.

Building a sustainable brand is not just about making your products and services more environmentally friendly. Rather, you need to look at the entire process that goes into creating your products and services and make changes from there.

In other words, sustainability encompasses environmental issues concerning how the business is run and its supply chain. It also consists of social and ethical issues like diversity, fair wages, and working practices.

In addition, the traceability of the products you sell, how transparent you are with stakeholders and customers, and the governance of the brand.

With all of this in mind, below some practical tips to build a company’s reputation for sustainability.

Brand honesty and transparency

Transparency is key when it comes to building a sustainable brand. Failing to share honest information or details on how exactly you are sustainable could result in greenwashing or green botching (sustainability actions backfiring or poorly implemented), which can have negative effects on both brand image and reputation.

Even if you are just starting with sustainability, customers will appreciate it. You need to tell them where you are on the journey and what the next stages are in your plan to become more eco-friendly. It doesn’t stop there, you need to update them on your journey too.

To build a reputation for sustainability, you must appear as a leader and understand exactly what you are talking about.

When trying to figure out how to communicate with customers, acknowledge that some may not have a good knowledge of sustainability.

Therefore, communicating your processes and what exactly makes your products environmentally sound is essential while addressing your consumers’ specific concerns around sustainability.

Make your products more circular

Another way you can build a strong reputation for sustainability is by making your products more circular. This shows customers you are committed and taking action against issues like waste and pollution.

Additionally, making products circular often increases their lifespan, so you are ultimately creating more value for your customers. Implementing sustainable business practices will encourage your competitors and other companies to follow suit, and we are all trying to achieve the same goal here.

Circularity refers to reusing, recycling, and refurbishing products. Therefore, it could mean using materials or resources that would have otherwise been discarded to create a product or fixing a product to make it high-quality and usable again.

When thinking of how to make your products circular, it all comes back to trying to keep items in circulation for longer and avoiding disposal.

Circularity isn’t about reinventing the wheel but figuring out how to extend the lifespan of products and resources.

Build a more eco-conscious supply chain

One way to display your dedication and commitment is by looking at how you can make improvements in your supply chain.

Think about where your materials and resources come from, who your partners are, what their values are, and whether they are working towards sustainability.

Partnering with like-minded organisations can make a big difference and help you contribute even more positive change.

Take fashion, for instance, if you are working towards becoming more environmentally conscious, you need to know where the clothes are being created and who is creating them. Are the workers receiving a fair wage? What are their work conditions like? What is the environmental impact of the production?

Embed sustainability into your company’s mission and vision

The brands that have a strong reputation for sustainability are those that have recognised the correlation between sustainability and their business activities and goals.

These organisations have not made sustainability a separate goal but made it part of their reason for existing.

They have a purpose beyond generating profits and making sales. Sustainability is a factor in everything they do, and they consider it in every business decision that is made.

Beyond the positive benefits for the planet, showing this commitment can help them to win more customers, raise awareness, attract new talent, and build a better working organisation.

Set goals and genuinely measure your impact

In an effort to build a reputation for sustainability, you could run the risk of getting a reputation for greenwashing if you do not set goals and measure your impact.

Choose the issues you want to focus on primarily, set measurable objectives with timelines, and then measure your impact. For example, carbon accounting can give you a sense of your company’s carbon footprint and how it can be reduced.

Additionally, running a materiality assessment or completing ESG data tracking using popular standards like the TCFD reporting* can help you understand where you are with your sustainability targets. Doing this will help you understand your impact and how you can make improvements.

Without numbers or measurements, how can you know where you need to make changes?

Once you have defined your goals and measured your impact, communicate this in an impact report so your audience understands where you are on your journey, too.

Summary

According to Forbes, 88 per cent of customers will be more loyal to a business that supports environmental or social issues. They are choosing to support companies with a reputation for sustainability.

Addressing climate change will not only help you reduce your impact to protect the planet but also increase sales, win customers, and improve your brand image and reputation.

The best way to start your journey is to educate yourself and continue to learn about the latest updates. There are several courses available that could help you improve your understanding and implement practical steps that lead to building your brand.

*TCFD reporting - Task Force on Climate-Related Financial Disclosures

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The role of sustainable innovation in business strategy

Bronagh Loughlin — Wed, 10 Jan 2024 11:14:34 +0000

The role of sustainable innovation in business strategy

Tags

Sustainable Innovation

Sustainable Business

Sustainability

Climate Innovation

Topic

Sustainable Innovation

Innovation, by definition, is “the introduction of something new.” The new refers to products and services but also enhancements in business models or business processes. Sustainable innovation, driven by concern for the planet and resources, integrates sustainability management into business practices.

What is sustainable innovation, and how does it differ from traditional innovation?

Sustainable innovation consists of making intentional alterations to an organisation’s services, processes, and products to create long-term environmental and social benefits while ensuring economic profits for the business.

This kind of innovation allows companies to invent and provide novel services or products that directly contribute to achieving global sustainability.

However, businesses can also innovate sustainably while providing existing services or products when they integrate sustainable product design into their processes.

Process changes can happen in a multitude of areas, including production, design, marketing, and human resources. Some may ponder exactly how sustainable innovation differs from traditional innovation. The first way they differ may be the most obvious.

Businesses that engage in sustainable innovation go further than merely seeking profits. They think of growth in the long term and about investing in people and technology-for-purpose for the future.

Sustainable innovation intentionally aims to further the climate agenda. It requires organisations to actively embed issues like climate change and human rights into their innovation processes.

Finally, sustainable innovations need systems thinking and sustainable collaboration. When businesses engage in sustainable innovation, they cannot simply focus on their own business. Rather, they must look more broadly at the entire system they are part of.

This includes other businesses, stakeholders and communities, and the natural environment. Ultimately, they have a quality understanding of exactly how their actions impact other businesses.

Why is sustainable innovation important for businesses?

Sustainability-oriented companies are more likely to survive and navigate crises, generate more revenue over the long run, and experience less share price volatility than those who do not focus on the environment.

Sustainable innovation can result in stronger business models, enhanced processes, newer market segments and so much more. It also helps to respond to consumer demand for more sustainable products and services.

A Deloitte survey has uncovered personal ethics play a significant role in career choices, and many are suited to work with purpose-driven organisations. In addition, businesses that care about the environment are generally more resilient compared to their competitors.

Those businesses that do focus on sustainability also have a better chance to produce more impactful and meaningful patents while embracing a broader thinking and learn from various perspectives.

How can sustainable innovation help the world?

Sustainable innovation embeds environmental protection in the ability to create new products which satisfy our needs in the long term.

Business as usual is no longer enough to tackle the environmental and social challenges our world faces. From large multinationals to micro-enterprises, all companies will have to innovate in order to survive and thrive in the future.

New thinking on how businesses can deliver primary business plans while creating improved socioeconomic and environmental benefits is a must for any organisation looking to become genuinely sustainable and ensure their place on the market.

Innovation is a critical ingredient in the new world of sustainability. It helps in distinguishing between the ‘followers’ and the ‘leaders’.

The business case for sustainability was previously based around business-as-usual elements like reputation, accessing a fantastic talent pool, cost savings, and resource efficiency.

However, leading organisations realise that within these environmental challenges, there are opportunities to re-invent services and products to achieve major market benefits.

Now, those who innovate sustainably can enhance energy efficiency, utilise more environmentally friendly materials, meet customer needs and alter behaviour, and get involved in the circular economy.

With all of this in mind, they can kickstart their journey to net zero, a transition all companies are bound to make sooner rather than later.

Developing a sustainability strategy

Below are some strategies and steps to help you get started.

Make sure you have achievable and clear goals and objectives

Sustainability has excellent potential to bring about business growth and success. However, this is only the case if you know what your specific objectives are.

Similarly, they must also be achievable for your organisation. You can do this by looking at the areas whereby your environmental impact could need some work and set timelines for those objectives.

Having these ideas will enable you to narrow down the scope of innovative ideas. This means you prevent the likelihood of vague and unclear initiatives, and you can meet your goals.

Make sustainability your company’s core value

This one is often a lot easier said than done, but everything your company does should adhere to a core value of sustainability. Making sustainability part of your culture will ensure that each decision you make already considers the ethical and environmental impacts of your actions.

Each manager, leader and employee needs to be aware of sustainable practices and ready to provide ideas.

The result of this is an expansion of your existing culture of innovation which will ultimately weave an environmental mindset into each new idea.

Be sure to make a public commitment to sustainability and leverage this

Dedicating your business to sustainability is not easy. Prioritising and reaching goals related to sustainability can be even more challenging. One of the reasons why commitments generally fail is because they are met with stakeholder resistance. A lot of the time, when given a choice, they would rather choose business objectives than sustainability targets.

This is particularly the case if these targets are unrealistic, vague, or they feel a lack of executive support. By making a public commitment to sustainability with clear targets, you make the first steps in being accountable. Publicly showing this dedication can open up a lot of opportunities for you to attract new customers, engage with current ones, and improve your bottom line.

By doing so, you also set the stage for the full company, encouraging and guiding each team member and stakeholder to focus their efforts on sustainability.

Sustainability should be part of each process

Another thing to note is that environmental practices do not just begin once a product is launched when the final idea is created or presented. Rather, it must be woven into each theme of innovation ideation and each facet of design from the moment of inception.

If you feel sustainability targets are an afterthought as opposed to a core part of every workflow and design, you could find it challenging to achieve them all.

Consider how hard it is, once the product is launched, to transform even the tiniest things like packaging. Sustainability should be thought about from the very beginning.

The time for businesses to take accountability and act is now, and sustainable innovation could be the missing piece to the puzzle. Sustainable innovation will not only enable your business to reap the benefits of sustainable business but also enhance efforts on global sustainability goals.

The key to progress with any problems is innovation and with the climate crisis, it is no different. For your business to succeed, it needs a thriving Earth to support it.

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Why was a Shell green ad banned in the UK?

Bronagh Loughlin — Tue, 12 Sep 2023 11:56:38 +0000

Why was a Shell green ad banned in the UK?

Tags

greenwashing

Climate Change

Topic

Climate Communication

News Analysis by Institute of Sustainability Studies.

Shell, the global group of energy and petrochemical companies, has come under fire for an ad campaign that promoted the company’s green initiatives. The ad campaign was banned for not reflecting that a majority of the business is based on environmentally damaging fossil fuels like petrol.

They ran a TV, YouTube, and poster campaign pushing renewable electricity, car charging points, and wind initiatives. One of the ads read, “From electric vehicle charging to renewable electricity for your home, Shell is giving customers more low-carbon choices and helping drive the UK’s energy transition. The UK is ready for cleaner energy.”

The Anglo-Dutch oil company has shared its goals to become a net zero-carbon energy business by 2050. However, it has also announced it will continue to grow its gas business by over 20 per cent over the next five years. Green campaigners worry that whilst Shell has set a climate strategy, it may still increase its emissions in the coming decade.

Why was the ad banned in the UK?

The Advertising Standards Authority (ASA) investigated the Shell ad after campaigning group Adfree Cities made a complaint.

ASA is the UK’s independent regulator of advertising across all media, adopting the Advertising Codes created by the Committees of Advertising Practice (CAP).

Over the past number of years, they have been increasingly focused on environment-related advertising issues and cracking down on advertisements that include misleading environmental claims and social responsibility.

The advertising authority has also banned ads in the UK by Spanish oil company Repsol and Malaysia’s Petronas for not offering complete information on their carbon reduction strategies and activities.

In 2022, the authority banned other “misleading” ads, such as Tesco's plant-based burger ad, a Persil advert, and two HSBC adverts.

How did Shell respond to the ads being banned?

In response to the ad being banned, Shell spoke out, stating that the goal of the ads was to raise awareness of the variety of lower-emission energy products it offers.

They also said that mentioning high-carbon Shell products in the ads would have been counterproductive and would have diluted the impact of the ads’ positive sustainability message.

Shell defended their claims and critised the decision to ban their ad. Image: Photographic Services, Shell International Limited

The ad being banned resulted in the energy company criticising the ASA’s decision.

They said the decision to ban their ads was shortsighted and that the decision would risk slowing the UK’s desire to switch to renewable energy.

Additionally, Shell claimed that people are aware that the company produces gas and oil they depend on today because when they fill up at their petrol stations across the UK, it is under the very recognisable Shell logo.

The ASA responded that although most consumers associate Shell with energy products derived from fossil fuels, they are also aware that businesses in these sectors are trying to reduce emissions in response to the climate emergency.

hey continued by saying that advertisements like these risk misleading consumers if companies exaggerate the role that low-carbon initiatives would play in the future as part of the overall balance of an organisation’s activities.

Summary

The ads stated that 1.4 million homes in the UK are utilising 100 per cent renewable electricity from Shell and that they are fitting 50,000 electric vehicle chargers across the globe by 2025 and are working on wind electricity, which will power 6 million homes.

ASA ruled that the nature of the ads gave the impression that low-carbon energy products comprised a significant portion of the energy products Shell invested in and sold in the UK last year or were likely to do so in the future.

While Shell claims it had good intentions in sharing the available alternatives, the ASA cited Shell’s 2021 Sustainability Report, revealing that its operations produced 1,375 million tonnes of carbon dioxide.

Investing in wind energy is amongst Shell`s future strategic plans to provide sustainable energy sources. Image: Photographic Services, Shell International Limited

Headline image: Photographic Services, Shell International Limited

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Digital business hub to drive sustainability in the CEE region

Bronagh Loughlin — Tue, 12 Sep 2023 11:14:09 +0000

Digital business hub to drive sustainability in the CEE region

Tags

Business Sustainability

Education

Sustainability

Topic

Business Sustainability

The World Wildlife Fund (WWF) has launched a digital information hub for sustainable business solutions in Central and Eastern Europe to support businesses on their journey in fighting the climate crisis.

The platform is called “The Future of Business” and is freely accessible to all interested parties, including start-up innovators, elected officials, corporate leaders, and sustainability experts.

The Future of Business online information hub is powered by WWF and provides insights on sustainability and climate action. Image: WWF

“We have created “The Future of Business” with the purpose to examine what the future of our region could look like and how to shape it in favour of people and nature,” shares Peter Baráth, Regional Director of Marketing and Partnerships at WWF-CEE.

He highlights that the main objective of creating this platform is to ignite the vital conversation on the business case behind sustainability in this region.

The platform will unfold five themes: climate leadership, water and forest stewardship, finance and food systems.

It is hoped to offer the business sector actionable insights on the most recent credible sustainability practices relevant to specific industries and in the future there will be sector-based events to share more experience and knowledge.

The hub currently has three different forms of media available, such as articles, podcasts, and videos.

Peter Baráth adds:

“It is designed for passionate change-makers who want to generate a positive impact for both the business sector and the planet”.

Also available on the platform is “The Future of Business” podcast, supported by VELUX, the world’s leading manufacturer of roof windows.

In addition, a virtual library with practical guidelines and scientific reports is yet to come.

The hub was created with the vision to examine what the future could look like and how to shape it in favour of nature and people.

To begin, the platform will share knowledge on primary themes, including water and forest stewardship, climate leadership, food systems, and finance.

The first episode of the “The Future of Business” podcast explored how businesses can push for the transition to a net-zero economy, focusing on corporate climate leadership with guest speakers including Lubomila Jordanova, founder of an award-winning platform for decarbonisation called Plan A.

The WWF created this platform as they recognise that businesses have a critical role to play in the fight against biodiversity loss and climate change.

Publicly listed businesses are responsible for around 40 per cent of all climate-warming emissions, and while their impact is significant, this is also an opportunity.

As one of the largest and most seasoned independent conservation organisations, the World Wildlife Fund believes the private sector can transform into a driving force for the transition to a nature-positive and net-zero economy.

Education can be a barrier to climate action for businesses, so the arrival of more informative hubs, insights, and tools is crucial in helping to make change happen.

The mission of WFF is to halt the deterioration of the planet’s natural environment and create a future in which people coexist peacefully with nature.

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Looking at business sustainability through the upskilling lens

Bronagh Loughlin — Thu, 01 Jun 2023 10:07:11 +0000

Looking at business sustainability through the upskilling lens

Tags

Topic

Expert opinion by Niall Collins, Chief Operating Officer Institute of Sustainability Studies

Businesses are under increasing pressure from all stakeholders to improve the sustainability performance of their operations.

Companies must integrate sustainability principles to remain competitive, meet stakeholder demands, and stay ahead of looming regulatory requirements.

You will need the right skills and knowledge to do all this.

I worked in sustainability consulting for several years, helping organisations from all different sectors and sizes begin the first stages of their sustainability transformation.

I understood quite early on that the only way to ensure the integration of sustainable business practices into any organisation was through education and upskilling of individuals.

Niall Collins Chief Operating Officer at Institute of Sustainability Studies

Furthermore, I believe every job is becoming a green job, and all employees need to understand how their role impacts an organisation’s sustainability goals.

External consultants, like I was, can only help to a certain extent. Internal teams must have the necessary skills to implement the critical steps to improve their business. I brought this expertise to the Institute of Sustainability Studies (ISS) to enable whole organisations to internalise sustainability through learning.

ISS is an ed-tech start-up that helps individuals and organisations on their sustainability journeys by developing and delivering practical, comprehensive, and action-oriented courses that can help them implement sustainability practices throughout their operations.

Removing jargon and making sustainability practical and accessible

Despite the growing interest from business leaders in this area, I have noticed that the jargon associated with sustainability often drowns the easy means of putting things into practice. In essence, they don’t know where to begin.

We have designed two learning opportunities at ISS - a Certificate and a Diploma in Business Sustainability - to remove the cloud that covers climate change, carbon management, circular economy and other topics in this field.

For instance, to tackle regulatory barriers, we provide detailed information in our Module on Sustainability Plan Implementation on key business-friendly regulations, including the EU Taxonomy, Sustainable Finance Disclosure Regulation, and the Corporate Sustainability Reporting Directive, all of which provide greater transparency concerning the analyses of sustainability risks inherent in business activities.

A dedicated module on Sustainable Finance helps businesses learn about financial assets and benefits that bring economic and environmental benefits while tackling the barrier of limited resources.

There is a lot of misinformation out there, especially when it comes to transitioning to a sustainable business.

One of the first assumptions we break in our courses is that being sustainable means shedding more money and taking a direct hit on profitability.

However, as most of our participants have found and experienced, many easy tools will help you become sustainable without compromising your profitability.

Breaking big ideas down into quick and actionable steps

Complex and complicated concepts, such as circular economy or decarbonisation, can be broken down and translated into quick and actionable steps.

That`s also the case with the circular economy, which could be a real win-win-win for businesses, society and the environment if adopted properly.

We have a dedicated module on circularity in business and sustainable products, focusing on optimising every aspect of a product’s lifespan.

In the end, they have the ability to explore advantages and analyse the risks and opportunities associated with a circular business model.

In addition, they can assess their current organisational value chain, figure out how they can design products that better suit the circular economic model, and understand the importance of communicating their company’s sustainability journey. Participants will also understand that they can begin with small steps.

Companies can do many things, from becoming more waste friendly to actively reducing waste from daily operations and across the supply chain. Building a circular business model that supports the company`s daily operations require a clear picture of where they are now and where they are headed. Therefore, a thorough analysis is where it all should start.

The next step is to implement the R-strategies - refuse, redesign, repair, recycle, and reduce and work out a feasible revenue model that can help achieve these goals.

Putting it all together

To be motivated to implement changes, you need to see the benefits of your investment and actions. It includes the essential step of considering customers’ needs, and creating a well-researched business plan that caters to these needs most effectively is vital.

It is important to note that any plan should always have room left to adapt and improvise as per client needs. Green marketing and communication are pivotal when it comes to building a sustainable business.

Unless you get the word out about your green credentials that you have worked hard on, the success of your business will be limited.

You should find a way to be transparent and authentic in your communication while avoiding the pitfalls of greenwashing and building an honest relationship with your customers and stakeholders.

Putting the pieces together is also easier when you can share your questions and doubts with others and learn from your peers.

We always try to embrace this as we clearly see the benefits of exchanging ideas and sometimes war stories.

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This article is an extract from content originally published in the Circular Economy in Action special edition of the Profit with Purpose Magazine - you can read the full article and other features in the magazine.

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