Embracing sustainability is essential for future business success. We gathered expert insights on what business owners need to know to begin their sustainability journey. Sustainable business is the way of the future, so we asked Louise Aitken, Sustainability and Climate Director, and Josh McLeod, Organisation Transformation Manager at Deloitte what they wanted business owners to know as they start their sustainability journey. Here’s what they shared with us.
Louise Aitken, Sustainability & Climate Director and Josh McLeod, Organisation Transformation Manager at Deloitte.
‘Sustainability’ is a buzzword at the moment, with some companies even going as far as “green-washing” to create a perception of sustainability when they are anything but. But what is ‘sustainability’? The UN has defined it as “meeting the needs of the present without compromising the ability of future generations to meet their own needs” and its much further reaching than just the environment.
Businesses often grapple with the sustainability challenge; they see themselves as busy enough with the day-to-day of serving customers, balancing revenue and cost, managing supply chains and rising inflation, as well as recruiting, developing, and retaining talented people in an environment of low unemployment and skills shortages. But there is a way to incorporate sustainable practices that are authentic, easy, and add value without being seen as just a box-ticking exercise. The opportunity to create a competitive advantage by implementing sustainable practices is rapidly reducing, despite it also fast becoming a business necessity, and the organisations who are slow to respond risk damaging their brand.
Goal Set an ambition – what do you hope to achieve and then build a plan to get there.
Measure Start measuring the things that matter to you, your employees, your customers and your community. Not sure what matters? Asking is a great starting point!
Subsidize Provide employee subsidies for sustainable choices (e.g. electric cars, solar panels, public transport).
Educate Educate your employees about how to be more sustainable, at work and at home.
Prioritise Prioritise the areas that matter most – your carbon footprint, waste, goods or services – trying to do everything at once can be overwhelming, so start with something.
How sustainable practices elevate your employer brand
Sustainability is not only good for the planet, our communities, and your bottom line, it is also a great way to strengthen your employer brand. Organisations are now seeking accreditation, such as the B Corp certification, to show off their commitment to people, planet, and profit which makes them more attractive, particularly for purpose-driven Gen Z and millennial talent.
The recent 2023 Deloitte Gen Z and Millennial Survey showed that climate change is a major concern for these generations and it’s impacting their lifestyle and career decisions. About half of respondents say they’re pressuring their businesses to act on climate change, and they want their employers to support and empower them to make more sustainable decisions. When they don’t see positive action, they act themselves; 42% of respondents said they’ve already changed or plan to change job or industry due to climate concerns.
The younger generations also see a critical role for employers to provide the necessary training to prepare the workforce for the transition to a low-carbon economy. And, with approximately 800 million jobs worldwide highly vulnerable to climate extremes, this will likely continue to be a focus area.
Taking a proactive approach to climate and sustainability is fast becoming a foundational position for organisations if they are to be competitive in attracting talent. In years past, it was relatively rare for organisations to allow working from home and it was common to promote this as a unique selling point to prospective employees. Now, if you don't offer workplace flexibility, you may struggle to attract talent. Just think of the carbon savings if people don’t need to commute to an office…
As the labour market and skills shortages continue, organisations will have to get creative to differentiate themselves from their competitors and clearly articulate why Gen Z and millennial talent should work for them.
So, remember, becoming more sustainable is an investment in your business, your people and in Papatūānuku. And when she is thriving, so are we all. Find a wealth of climate and sustainability resources on the Deloitte website now.