9 sustainable business practices + actionable examples

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: 

• Understand why businesses should be more sustainable
• Audit the supply chain
• Partner with ESG companies
• Maximize energy-efficiency
• Work with local communities
• Create green products
• Minimize business waste
• Involve employees
• Measure and evaluate sustainability practices
• Grow with green business practices

1. Understand why sustainable business policies are important

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. 

Sustainability is a valuable practice in individual, organizational, and corporate environments, both to advance environmental and social protections and benefit business. 

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:

• Pivot to accommodate consumer preferences. Half of consumers feel an emotional connection to sustainable organizations, and 64 per cent say buying sustainable products makes them feel happy.
• Reduce production and overhead costs with energy-efficient practices like solar-powered offices. Strategic resource use, like circular supply chain models, can also reduce waste and benefit production and disposal costs.
• 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. 

How to identify and commit to sustainable practices

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.

2. Audit the supply chain

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.

Effective business SSIs may include:

• Collective aspirations: Hopeful statements shared by multiple companies to encourage SSI implementation that might include high-level goals.
• 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.
• Sanction-based standards: Registration and compliance requirements applied to specific suppliers or a region via bans or moratoria, or established monitoring practices.
• 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.
 

The UN Global Compact has guidance to help businesses get started, including:

• Sustainable Procurement Toolkit
• Guide to Traceability
• Practical Guide for Continuous Improvement

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. 

Start strong with sustainably-sourced materials

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.”
— Gerard Busse | Marketing and Communications Manager, FSC Southern Africa

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. 

3. Partner with ESG companies and stakeholders

Business actions and partnerships go a long way to express company values. Establishing ESG (environmental, social, governance) standards is a solid first step towards sustainability. It’s also great to partner with other companies committed to ESG responsibility and partner with relevant organizations to provide guidance and support for larger initiatives. 

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.

Show commitment by sponsoring ecosystem service preservation

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. 

4. Maximize energy efficiency

Energy-efficient power, resources, and machinery are a go-to solution for sustainability that’s been discussed for decades. It’s a relatively easy step for a business that can even earn tax credits, like the U.S. Clean Energy tax incentive.

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. 

Businesses should consider:

• Renewable energy sources from solar, wind, or nuclear sources
• Energy-efficient fixtures, like timed lights or low-flow toilets
• Sustainably made furniture that used less energy in production
• Sustainable appliances, like electric water heaters and high-efficiency HVACs
• 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 freight rather than high-cost, high-carbon air freight for raw material and product shipping.

Choose sustainable offices

The US Green Building Council rates LEED-certified green buildings based on a building’s environmental performance. Asking about LEED certification and sustainable building design, construction, and interior design can help prioritize sustainability from the beginning. 

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.

5. Work with local communities and Indigenous Peoples

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:

• Safe working conditions
• 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.
 

6. Create green products

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.

Prioritize sustainable production with recycled materials

“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.

7. Minimize business waste

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.

Reduce plastic in packaging

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.

8. Involve employees to boost individual efficiency

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.

Train employees to support organizational initiatives

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.

9. Measure and evaluate sustainable business practices

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.

Grow with green business practices

From sustainably developed products to energy-efficient offices, there are numerous ways to improve business sustainability – not just for the good of the Earth, but to protect the business from changing legislation and consumer attitudes towards wasteful practices.

FSC can help consumers identify FSC-certified wood materials, office furniture, and more. And businesses that produce raw materials or work with partners that manage forests should look for FSC Forest Management Certification to ensure local forests are managed properly.

Additional resources

Explore the UN’s Sustainable Development Goals to learn more about international plans to fight inequality and protect the planet’s environment.

Visit the DAI website to learn about global development and international supply chain solutions across 150 countries. DAI prioritizes solutions for areas struggling with climate, environmental, economic, or political difficulties in development.

Learn more about sustainable business initiatives and how to effectively address ESG with business strategy using World Resources Institute research, data, and resources.

Sourcing

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