The best definition of the green economy that I’ve come across (because there are plenty out there) is an economy that provides prosperity for all within the ecological limits of the planet. This UN definition of the green economy comprises 5 very important principles:
1. The Wellbeing Principle – everyone can create and enjoy prosperity
2. The Justice Principle – there’s equity within and between generations
3. The Planetary Boundaries Principle – nature is safeguarded, restored and invested in
4. The Efficiency and Sufficiency Principle – sustainable consumption and production are possible
5. The Good Governance Principle – the economy is guided by integrated, accountable and resilient institutions
(Source: Green Economy Coalition)
Over the past year, as I’ve researched green business practices and how we as a company can facilitate them, I’ve learnt that while there are a large number of organisations that want to support the green economy, there’s also a large number that are struggling to action the changes needed to achieve ESG ambitions.
This article compiles my suggestions for how to get the ball rolling (plus some tricks for securing buy-in if there’s hesitation amongst employees).
I’ve included information on:
- Certifications to look out for when choosing suppliers
- Grants and funding for government schemes
- Simple new practices you can introduce
- Advice you can give employees, and
- Examples of targets.
It gives you a flavour for the options that are out there which will hopefully inspire you to think of new ways to build on your efforts.
1. Get business unit directors to set their own targets
Whether you’re required to report your GHG emissions under the Streamlined Energy & Carbon reporting (SECR) obligation or not, I think it’s important that businesses of all sizes keep themselves accountable. Particularly because, at current, there’s no requirement to set or meet targets.
In 2018, the transport and storage industry, and manufacturing industry were responsible for 15.1% and 14.8% of the UK’s total greenhouse gas emissions respectively (Source: Energy consumption in the UK). There’s no doubt businesses need to do their bit and targets are the simplest and most pragmatic way of moving forward.
Each year, ask business unit directors to commit to a single target that they believe (a) will make a real (measurable) impact and (b) is possible. Central services work in a different landscape to service delivery teams, for example, so it makes sense to get functions to set goals that they are responsible for achieving. Share these internally, encourage them to challenge one another and hold each other accountable. Some target examples are:
1. Reach zero waste to landfill by 2025
2. Reduce waste and water consumption by 2% every year
3. Choose energy-efficient items with the ENERGY STAR® logo or items that are EPEAT registered for the office over alternatives
4. Where possible, choose Certified B Corp suppliers
5. Put all hauliers through driver-training within the year
I recently read that driver-training can deliver between 5-13% reductions in CO2 emissions. Drivers that took part in the government-sponsored SAFED programme managed to improve the fuel efficiency of their driving by an average of 7% (Source: Decarbonising Road Freight).
Don’t get bogged down in trying to come up with perfect targets. Start somewhere and iterate from there.
2. Support employees to make green decisions
As employers, at a very minimum we should enable and encourage employees to make green decisions at work. Think about how carbon could be saved if office canteens offered more meals using local and seasonal produce, or how much waste could be saved if you replaced paper towels with hand dryers in all offices? Every change has an impact.
Here are some more examples of ways to support the green economy in your organisation:
1) Install electric vehicle charge points: At the moment, we’re not spending much time in offices, but there will come a time when people start travelling to work again. The Workplace Charging Scheme is a voucher-based scheme that provides support towards the up-front costs of the purchase and installation of charge points. You can get more information here: Workplace Charging Scheme Application Form.
2) Enable employees to voice ideas: Billion-pound consumer goods company Unilever has created a culture that encourages employees to voice ideas on how to make the businesses greener, and it’s massively benefited the conglomerate. A factory-floor suggestion to reduce the end seals of tea bags by 3 millimetres has saved the business over £42,000 and 9.3 tonnes of paper (about 20,500 pounds).
3) Educate people on green opportunities: Providing information and support for employees on climate action is key. It’s got so many benefits outside of direct carbon savings, including attracting a higher calibre of talent and improving brand engagement and positioning. For example, according to pension provider Nest, 65% of people believe their pension should be tackling climate change (Source: Next Going Net Zero to Support Green Recovery) but many employees don’t know where their money is being invested. Providing information on how employees can move their pension to a sustainable fund is a huge vote of confidence in the green economy.
4) If you are not based in the UK, you may encourage folks to sign up to, take part in, and receive updates from Investing in America, which is an initiative which helps people afford electric vehicles and save on their utility bills. Part of encouraging employees to make green decisions is to support them in their personal lives, too.
Did you know Nest has moved £5.5 billion of shares (equity) into climate aware strategies, representing 45% of its entire portfolio? This will immediately reduce Nest’s carbon footprint by the equivalent of taking 200,000 cars off the road (Source: Next Going Net Zero to Support Green Recovery).
The UK needs businesses to adopt greener practices if it’s going to meet its carbon targets. Many businesses have board-level conversations about ESG, and we’ve seen a positive shift in the number that are either rolling out, or thinking of rolling out, changes to their services and products. But what about employees? We shouldn’t overlook the collective power of the people who make our businesses work.
Employees spend about 3,515 days working over their lifetime so are unarguably influenced by the businesses they work for. A key takeaway from this article is that it’s your people who will ultimately action the changes needed to achieve ESG ambitions. Supporting and educating them on sustainability will therefore snowball your objectives and ultimately the green economy.
