Small and medium businesses may not see the need to take the plunge into ESG for the purpose of attracting investment, for example, but keeping up with the world’s dedicated push toward sustainability can lead to good outcomes all around.
One of the best examples of how good practices can come together is seeking out suppliers or vendors for food that support value chains that follow regenerative farming practices. Generally, regenerative farming supports major sustainability points in biodiversity and soil health, which is a major concern for the future of arable land (food security and cost).
More to the point, businesses are now part of an ecosystem of stakeholders that are well-informed and seek out companies that can provide information on their current actions toward sustainability.
This doesn’t mean that the owners or operators of a small or medium restaurant, or medium-sized office, need to run out and spend thousands of dollars on tracking software. Sustainability can begin with actions in play such as finding more sustainable vendors and food products or creating a fair and clean work environment. Fair and equal pay can also be a part of sustainability (and ESG, Environmental, Social and Governance). Your customers will appreciate the efforts.
The bottom line is that many younger consumers are looking for businesses that can meet their expectations in service or product and their expectations as what’s appropriate behavior and fairness. To some degree, there is subjectivity on this front, but most businesses that enter into the ESG game figure their way through over time in concert with their main stakeholders (customers!).
Most importantly, the future of the planet, and things like continued robust food production, matter to the continued existence of many businesses (restaurants) and the global community, along with the cost of doing business, so there is never a bad time to jump on board the road to sustainability.
What are the benefits to my firm in considering biodiversity and vendors?
- Brand value is a good benefit. With this, of course, a good communications plan is also important. If people don’t know what you’re doing to change the world, it’s hard to benefit from it from a margins standpoint.
- Businesses, especially small businesses, might have trouble attracting top talent. But taking sustainability seriously can help your company compete with other brands. It’s not just about the money.
- Over the long-term, procuring food products from vendors that pay attention to farming practices, such as regenerative farming, can help keep prices in stasis and products available for consumption.
How does my company get started with procuring sustainable products?
For small and medium businesses looking to take on sustainability, unless you have someone in-house with the knowledge and skills, it may be best to find a good consultant. Another option is to use the web as your resource or interview the vendors in your value chain. If your vendors are taking on sustainability, it’s likely they’ll want you to know about it.
Other advice is to make sure your company is on a path of continuous improvement and learning. The science of recycling may change over time is a good example of why that’s important.
Remember: The vendors you buy from should be accountable to their customers. If you don’t know about their practices, ask them to tell you about their sustainability actions. Also, when it comes to ESG or any action toward a sustainable world, environmental actions are important, but they are only part of the ESG world. Community and internal governance are just as important, especially for investors, as well as customers. Taking on ESG can also help small companies become compliant with local and federal regulations and laws. Consider today and tomorrow and your bottom line.