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Sustainability Plan: How it can be designed and implemented in your company

by APLANET , APLANET

May 12, 2023

In this article, we’ll investigate what a sustainability plan is, how it relates to the Sustainable Development Goals (SDGs) and how its implementation can help your company in a number of ways. We’ll also take a look at the benefits of adopting a sustainable approach to your business and we’ll give you a step-by-step guide to creating and implementing an effective sustainability plan in your organisation. So, accompany us on this sustainability journey and discover how a sustainability plan can boost your company’s long-term success and resilience.

What is a sustainability plan and why is it so important?

63% of Spanish workers believe that sustainability policies, such as the one we’re exploring here, are a determining factor. These are the results from a study recently published by Compromiso RSE (in Spanish), a specialist CSR website. As we can see, ESG criteria (i.e. environmental, social and corporate governance) are growing in importance.

Defining a sustainability plan

A sustainability plan is a guide that sets clear, measurable and realistic objectives to improve an organisation’s sustainability. In addition, it needs to work in harmony with the UN’s Sustainable Development Goals (SDGs), which are aimed to be achieved by 2030. Generally speaking, it should follow the European Union’s lead in reducing the company’s carbon footprint.

It is worth highlighting the fact that the EU stands out from other organisations of its kind in that it implements realistic and specific policies. What’s more, the plan needs to include all workers, directors, clients and investors linked to the business. By ensuring these key components are incorporated, companies all over the world will be able to effect real change.

Benefits of implementing a sustainability plan

The European Environment Agency has been urging us to adopt plans to combat this pressing issue since 2015. In fact, it declared that Europe is far from reaching its target of “living well, within the limits of our planet”. For this reason, it is now more important than ever that we fully understand the advantages of these kinds of guidelines:

• Improved corporate image . Four out of every five large companies in Spain increased their sustainability investment in 2022, according to Deloitte (in Spanish). One of the main reasons for this was the need to show a commitment to the planet. The same study revealed that 74% of people are worried by the role that companies are playing.
• Reduced operating costs . Sustainable policies have an overwhelmingly positive effect on the value chain in the medium and long term. This is mainly a result of optimising the use of resources and reducing waste. Increasing your company’s energy efficiency is a great way to ensure a promising future.

A step-by-step guide to creating a sustainability plan

Nowadays, every company can choose exactly how to adopt its own sustainability plan . However, it is worth noting that there are a number of regulations that must be observed, which contain some important aspects. Of these, the most important to consider are state regulations which are then transposed into law in EU member states, such as:

• Spanish Law on Cooperation for Sustainable Development and Global Solidarity (2023). This forces companies and institutions to also focus efforts on combating hunger and creating healthy environmental conditions.
• Spanish Sustainable Economy Law (2011). This called for businesses to join together in the fight against climate change. It marked an important milestone in this regard.

Step 1: Perform a materiality analysis

First of all, it’s vital that you know how to create a materiality analysis . This will help you infinitely when deciding on which actions should take priority and other relevant aspects. You will be able to optimise the investments your company makes in terms of time, as well as human and financial capital.

In order to prepare a materiality analysis, you’ll need to provide in-depth details of your corporation’s impact from an environmental, social and economic viewpoint each year. In other words, you’ll describe what your company is doing to bring about real change. Next, you’ll have to find out which resources are available to you and try to make them more sustainable.

Step 2: Identify sustainability goals and objectives

Your chosen goals must meet certain requirements so that they can be effective:

• Specific and detailed . Do away with vague proposals and make firm commitments that are in line with societal demands. In particular, this refers to issues such as minimising your carbon footprint and cutting down on natural resource wastage.
• Measurable . It’s crucial that you assess your progress by using relevant metrics. To do this, establish a series of indicators, as you’ll see in step four. Some of the more fitting ones include the percentage of GHG emissions reduction and carbon footprint offsetting.
• Assessment and monitoring . Objectives must be subject to a critical evaluation during the planning stage. Once they have been implemented and you’ve started to work towards them, ask an independent body to come and check that they are actually being met.

Step 3: Drawing up strategies and actions for your sustainability plan

It goes without saying that any action you decide on must be focused on meeting the goals that you set in the previous step. This is the only way to bring about your desired changes and minimise obstacles and difficulties . As such, they need to form part of a detailed guide which all members of your team, and even society as a whole should be involved in creating.

Some strategies have a far-reaching influence that goes way beyond the sector itself. Give priority to these kinds:

• Optimising energy efficiency (in line with the guidelines of the Institute for the Diversification and Saving of Energy [IDAE]).
• Effectively and intelligently managing waste, whilst preventing the misuse and contamination of natural spaces.
• Integrating an eco-friendly policy in the production chain, such as tourism sustainability plans .

Another cornerstone that offers many possibilities is collaboration between companies. In any case, it is worth broadening your scope and also working alongside bodies and NGOs that are dedicated to improving companies’ sustainability.

Step 4: Setting and monitoring key performance indicators (KPIs)

Some of the most common KPIs that you can include in your company’s sustainability plan are:

• Renewable energy penetration . Make full use of the grants offered by public bodies such as IDAE. They tend to be focused on solar energy, whether photovoltaic, thermal or hybrid installations. The latter in particular is starting to show great promise and potential.
• Energy efficiency in production . Industrial activity is one of the main causes of GHG emissions. Adopting measures that reduce electricity consumption is of utmost importance. To help achieve this, the most effective KPIs you can use are those that concentrate on company energy consumption.

One of the key ways in which APLANET can be of service is by helping you set indicators that are sure to contribute to reaching the goals you’ve set. This is a fully personalised service that is adapted to the needs of your company, and our real-time data management system will make sure you stay on the right track. This ensures that your investment is being used effectively.

Step 5: Communicating and participating with stakeholders

When adopting an environmental sustainability plan , it’s a good idea to identify your different stakeholders. This usually divides your company, the people that comprise it and the different organisations that interact with it into groups. The most effective plans are those that involve all parties affected:

• Investors , who are responsible for providing the financial capital required to carry out the company’s sustainability plan .
• Clients , who, as we mentioned earlier, are mostly willing to pay more. What matters to them more than anything else is that they are supporting an eco-friendly solution.
• Shareholders , who may belong to other companies or entities focused on CSR. These provide invaluable help when searching for shared goals.

Step 6: Reviewing and continuously improving your sustainability plan

This final step never really comes to an end, as it just keeps going as a cycle. We recommend establishing a methodology for constantly reviewing, monitoring and developing your plan. Therefore, you’ll need two professionals to take care of this. One of them needs to be part of the company’s senior management, while the other should be an independent specialist.

Together, and with representatives for all stakeholders , they will embark on the review process. Following this, they will report back on the progress to those who have invested in the plan. The aim of this is to show exactly how their time and money have been used, as well as the milestones that have already been achieved and those that are still in progress.

This is when you’ll have to sit down and review each of your KPIs one by one in order to compare the degree to which each of them have been achieved and determine whether or not the company is heading in the right direction. If, on the other hand, it is deemed to be going in the opposite direction, there’s no need to worry: this step will allow you to detect the causes and further develop your sustainability plan .

Conclusions and recommendations for creating an effective sustainability plan

We are firm believers that this needs to be a three-pronged approach that tackles the economic, environmental and social scope of the company in order to provide a true reflection of its current situation. This also includes ensuring that the needs of its clients, investors and society as a whole are being met.

• Get in touch with experts in this field to create a network of collaborators, both internal and external. This will give you a valuable and constant flow of ideas.
• Report on your progress and challenges . Your company should provide frequent updates on its achievements and shortcomings. Don’t be afraid to ask for advice.
• Use supporting software . One example is the program developed by APLANET, which allows you to manage all your information efficiently and give you complete control over traceability.

Create a sustainability plan that meets your company’s goals with the help of APLANET. With our software, you can collect data and manage your indicators and information all in one place, while also generating your own reports. Request a demo .

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7 Step Process to Build A Sustainable Business Model

• Entrepreneurship
• Environment

This post may contain affiliate links. See our disclosure about affiliate links  here .

Table of Contents

In a world increasingly conscious of environmental and social issues, building a sustainable business model has become a moral obligation and a smart strategic move. This 7-step guide will walk you through creating a sustainable business model that can thrive in a rapidly changing landscape while positively impacting the world.

Understanding the Importance of a Sustainable Business Model

Before delving into the details of creating a sustainable business model, it’s crucial to understand it. “a business model is a framework that summarizes how a corporate creates, delivers, and captures its business operations.” 

Why is Sustainability Crucial for Businesses?

Sustainability has evolved from a buzzword to a fundamental business concept in recent years. It’s crucial for several reasons:

• Mitigating Risks: Sustainable practices help to reduce environmental and social risks, which can impact a company’s business model for sustainability.  
• Meeting Consumer Expectations: Modern consumers are increasingly inclined to approach businesses that align with their values. Sustainability can be a crucial selling point.
• Regulatory Compliance:  Many regions have stringent environmental regulations. A sustainable business model helps ensure compliance.
• Long-term Viability: Sustainable practices are more cost-effective in the long run and contribute to a company’s relevance and its achievement of sustainable development goals in a changing world.

The Benefits of a Sustainable Business Model

A sustainable business model offers various benefits, such as:

• Enhanced brand reputation and customer loyalty
• Improved financial performance through cost savings
• Access to new markets and business model’s
• Attraction and retention of top talent

Step 1: Evaluating Your Current Business Model

Assessing the strengths and weaknesses of your business model.

Start by evaluating your current business model. Identify what’s working right and what needs improvement. Consider factors like your revenue streams, customer segments, and distribution channels.

Identifying Opportunities for Improvement

Look for opportunities to incorporate sustainability into your existing model. Are there ways to reduce waste, use renewable resources, or enhance social responsibility?

Considering Environmental, Social, and Economic Factors

It’s essential to balance environmental, social, and economic factors to create a sustainable business model. Consider the impact of your business practices on the welfare of people while ensuring financial viability.

Step 2: Defining Your Sustainable Business Strategy

Aligning sustainability goals with overall business objectives.

Your sustainability strategies should align seamlessly with your overall business objectives. Ensure that sustainability is integrated into your mission and vision.

Developing a Clear Vision for Sustainability

Create a clear and inspiring vision for sustainability strategies within the corporation. 

Setting Measurable Targets and Key Performance Indicators

To track your progress, establish measurable targets and key performance indicators (KPIs) related to sustainable business model innovation. 

Step 3: Incorporating Sustainability into Your Supply Chain

Evaluating the environmental impact of your supply chain.

Examine your supply chain to identify areas where you can reduce its environmental impact. This may involve sourcing eco-friendly materials, optimizing transportation, and reducing waste.

Engaging Suppliers and Stakeholders in Sustainable Practices

Collaborate with suppliers and other stakeholders to ensure they also embrace sustainable practices. Encourage transparency and cooperation in your supply chain.

Implementing Sustainable Procurement Strategies

Adopt sustainable procurement strategies to ensure that the products and services you source are environmentally and socially responsible. Consider certifications and standards that support sustainability.

Step 4: Innovating Your Business Model

Exploring business model innovations for sustainability.

Innovation is critical to building a sustainable business model. Explore innovative ideas that align with sustainability, such as new revenue streams, business partnerships, or product innovations to transform your business. 

Utilizing Technology and Digital Solutions

Easy digital solutions to develop a sustainable business. From data analytics for resource optimization to online platforms for reducing waste, technology can be a powerful enabler as your business grows. 

Considering Circular Economy Principles

The circular economy, which focuses on reusing, repairing, and recycling, is a model well-aligned with sustainability. Look for opportunities to incorporate circular economy principles into your business.

Step 5: Developing a Sustainable Business Model Canvas

Understanding the business model canvas framework.

The Business Model Canvas is a strategic tool for developing and visualizing your business model. It has nine fundamental building blocks: customer segments, value proposition, and revenue streams.

Identifying Key Components for a Sustainable Business Model

When applying the Business Model Canvas to sustainability, identify how each component contributes to your sustainable business model. For example, your value proposition might highlight eco-friendly products.

Mapping Out Value Propositions and Revenue Streams

In your canvas, map out how your value propositions and revenue streams are interconnected with your sustainability efforts. This will help clarify the relationships between different aspects of your business.

Step 6: Implementing and Monitoring the New Business Model

Creating an action plan for implementation.

Develop a comprehensive action plan for implementing your new sustainable business model. Assign responsibilities, set timelines, and allocate resources accordingly.

Establishing Key Performance Indicators to Track Progress

Monitor your progress using the KPIs you established earlier. Regularly assess the impact of your sustainability initiatives and make necessary adjustments.

Continuously Monitoring and Adapting the Model

Sustainability is an ongoing journey. Continuously monitor your sustainable business model, adapt to changes in the business environment, and remain flexible.

Step 7: Scaling and Reaping the Benefits of a Sustainable Business Model

Expanding sustainability efforts to capture market opportunities.

As your sustainable business model proves successful, consider expanding your sustainability efforts to capture new market opportunities. This can lead to increased growth and profitability.

Enabling Long-term Growth and Resilience

A sustainable business model is an investment in your company’s long-term growth and resilience. It ensures your business remains relevant and competitive in a changing world.

Building Partnerships and Collaborations for Greater Impact

Collaborate with other businesses, organizations, and stakeholders to maximize the impact of your sustainable initiatives. Collective efforts often lead to more remarkable positive change.

Building a sustainable business model is not just about doing good; it’s about creating a profitable and resilient business ready to thrive in a changing world. By following this 7-step guide, you’ll be well on your way to making a positive impact while ensuring the long-term success of your business.

Final Thoughts 

In a dynamic, sustainable development, the imperative of a sustainable business model is undeniable. It’s the essence of how a corporation functions and creates values. The future is promising as businesses tailor the sustainable business model archetypes to their unique value propositions. Small or large corporations are increasingly incorporating sustainable innovations into their business operations. They’re realizing that profit must align with social and environmental progress. Every business council can contribute toward sustainable business development. 

Q: What is a sustainable business model?

A: A sustainable business model refers to conducting business that considers the long-term impact on the environment, society, and the economy. It focuses on creating positive social and environmental outcomes while generating economic value.

Q: What is business model innovation?

A: Business model innovation involves changing or modifying the existing business model of a company to create new value or address emerging challenges. It often involves identifying new revenue streams, improving efficiency, or adopting new technologies or processes.

Q: What are the critical steps to building a sustainable business model?

A: The following are the seven critical steps to building a sustainable business model:

1. Define your purpose and values

2. Assess your current businessBuilding a Sustainable Business Model: A 7-Step Guide model

3. Identify social and environmental impacts

4. Set meaningful sustainability goals

5. Develop a sustainable value proposition

6. Implement sustainable practices throughout the organization

7. Monitor and measure progress

Q: How can I assess my business’s social and environmental impacts?

A: To assess the social and environmental impacts of your business, you can conduct a thorough evaluation of your operations, supply chain, and stakeholder engagement. This may include analyzing your carbon footprint, waste generation, social contribution, and engagement with local communities and employees.

Q: How can I implement sustainable practices throughout my organization?

A: Implementing sustainable practices requires aligning company policies, processes, and culture with sustainability objectives. This may involve investing in renewable energy, reducing waste and pollution, promoting sustainable procurement, and integrating sustainability into decision-making processes.

Q: Are there any challenges in building a sustainable business model?

A: Yes, building a sustainable business model can come with challenges. These may include resistance to change, high upfront costs of implementing sustainable practices, the need for innovative thinking, and the complexity of aligning multiple stakeholders’ interests.

Q: Can a sustainable business model lead to profitability?

A: Yes, a sustainable business model can lead to profitability. By addressing social and environmental challenges, companies can uncover new opportunities, attract socially conscious customers, reduce costs, and enhance their brand reputation. However, it may require initial investments and a long-term perspective.

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Organizing for sustainability success: Where, and how, leaders can start

Sustainability and environmental, social, and governance (ESG) issues affect how all companies do business —and increasingly so in recent years. More companies, and their investors, are recognizing sustainability as a strategic priority that involves significant business risks and opportunities. But historically, few companies have organizational structures that are designed to treat sustainability as a material business issue. Instead, sustainability activities—and the organizations that support them—have focused primarily on investor relations, PR, and corporate social responsibility.

The “sustainability organizations” that still operate that way (and there are many) are tasked with managing stakeholder communications, target setting, and reporting. While those tasks are important, they are also insufficient for sustainability organizations to be successful. Our experience suggests that success is more likely when executives empower sustainability organizations to engage proactively and strategically hold them responsible for creating measurable impact. Only then will companies be able to maximize the value at stake from their sustainability initiatives (see sidebar, “A leader’s guide to embedding sustainability in corporate strategy”).

A leader’s guide to embedding sustainability in corporate strategy

To make sustainability a true organization-wide issue and a pillar of company strategy, CEOs and senior executives must be leading from the front. In our experience, leaders are most effective at doing so when they follow these three strategies (usually in this order):

• Embed sustainability in the company’s strategy-setting process. This is a prerequisite for the effective management of sustainability—and something that senior leaders are best positioned to do. The goal is not simply to have a great sustainability strategy but rather a corporate strategy that includes sustainability as a core component.
• Shape the portfolio to reflect an integrated strategy. Once a company’s sustainability-related priorities are clear, companies must make decisions on capital allocation, R&D funding, and portfolios accordingly.
• Scale up sustainable business practices through a full transformation. To incorporate sustainability in business planning and to empower and motivate the whole organization to take action on these issues, leaders should approach sustainability as they would any other new large-scale change effort. To ensure buy-in across the organization, it’s important to be clear about which sustainability topics the company will and won’t prioritize.

To get sustainability programs right, companies have big decisions to make. To start, they should choose which issues under the broader sustainability umbrella should be the responsibility of their sustainability organizations and which issues should be left to other parts of their businesses. The issues range widely, from building new low-carbon businesses and commercializing green products to managing environmental compliance and ESG reporting more proactively. As companies mobilize to respond to increasing sustainability concerns, many have struggled with the differences between sustainability and other business issues in the trade-offs involved, decision-making and governance processes, and even employee and leader mindsets.

So how do executives build sustainability organizations that are well placed and empowered to help their companies meet stakeholders’ increasing expectations, manage sustainability-related risks, and capture business opportunities? In this article, we outline four ways that leaders can guide the organizational redesign of their sustainability work and why they must think differently about sustainability compared with other, more traditional business issues (Exhibit 1).

Design according to sustainability topics , not sustainability overall

Sustainability is often used as a catchall term covering a great many topics. But for any given company, few topics will be of equal importance. Our work shows that companies address sustainability issues more effectively when they design their sustainability organizations to focus on each sustainability topic the company is prioritizing (for example, green hydrogen or its subtopic, operational decarbonization).

To do this well, companies should define the list of sustainability topics that matter for the organization, either because they are important to the business or because they are the areas in which the company is uniquely positioned to make a difference. One way to do so is with evergreen materiality assessments, 1 A materiality assessment is the process of identifying and prioritizing the potential sustainability topics that are most important for a company to address because of their potential impact on the business or its stakeholders. The process requires the engagement of both internal and external stakeholders, especially business-unit leaders with profit-and-loss responsibilities, investors, customers, nongovernmental organizations, regulators, and other key partners to the business. which account for the potential impact from, and likelihood of, a range of issues that could affect the company. Based on its materiality assessment, a company can then develop a short list of priority topics for its sustainability organization to cover. This will help companies make better decisions on resourcing and organizing around the issues that matter to their business.

When it comes to supporting sustainability work at the topic level, our experience suggests that a modular organizational design—rather than one holistic, central sustainability organization—often works best. A modular design gives companies the nimbleness to address emerging topics in a more agile way. Indeed, many sustainability topics arise quickly: for example, in 2018, the number of earnings calls that mentioned “plastic waste” increased 340 percent year over year. 2 Audrey Choi, “The business case for investing in sustainable plastics,” World Economic Forum, January 20, 2020, weforum.org. In practice, even if there’s a dedicated center of excellence for a certain topic, it doesn’t necessarily need to be part of the central team. Instead, it could be embedded in a business unit that has particular expertise on the topic or will be primarily responsible for leading the company’s response to it.

To support sustainability work at the topic level, our experience suggests that a modular organizational design—rather than one holistic, central sustainability organization—often works best.

One company we worked with built a carbon-management organization that distributed initiatives among different parts of the company, rather than relying on a central organization that covered all sustainability topics or that managed all of the organization’s carbon initiatives. The R&D department, for example, focused on researching and developing new low-carbon innovations. A separate business unit was created to commercialize low-carbon offerings to customers. Meanwhile, manufacturing sites set their own carbon-reduction targets, embedded their decarbonization initiatives in line with site-level turnaround schedules, and were held accountable for implementing those initiatives. The procurement team focused on decarbonizing the company’s supply chain. Finally, a lean central team coordinated carbon-emissions reporting and other carbon-related activities across the company.

Give your central sustainability team the decision rights to execute change

In our experience, it’s important for companies to have a central sustainability team to coordinate their work on these topics. Our experience also suggests that companies don’t need large central teams to implement their sustainability agendas successfully. While we have seen many companies start their sustainability transformations by allocating more central resources to these issues, we have also seen that having a smaller central team and more dedicated resources in the business lines that execute the detailed planning and implementation of sustainability can be most effective. In fact, among the companies we have worked with, some of those with highly effective sustainability programs have lean central sustainability organizations whose mandate is to incubate new sustainability ideas and integrate sustainability initiatives across the company.

What makes the central team particularly effective is having the decision-making authority to execute change, particularly regarding priority sustainability topics that affect multiple functions or that have a material impact on the overall organization. This authority has several dimensions. First, the central group should also engage the board of directors on critical sustainability topics, since the board holds the ultimate decision rights on such issues and the company’s strategic direction. The central team should also be empowered to hold others accountable, which it can do by setting centralized targets. Individual sites or businesses then come up with specific initiatives, timelines, and plans for pursuing those targets, and the central team tracks their progress while also maintaining a corporate-wide view of the company’s performance on the topic.

To ensure broad engagement in and commitment to common sustainability goals, the central team can enlist the company’s leaders to develop and define a corporate-level sustainability agenda. When the central team has a clear mandate from the business, it can better see that the sustainability agenda cascades through the organization and that business units have clear guidance on which priorities to take on.

At one company with a successful sustainability organization, an existing business unit worked closely with the central sustainability team to incubate a new business for end-of-life products. Once the idea reached a defined financial milestone and level of technological maturity, the responsibility of business building shifted away from the central team to that business unit. Since the business unit was involved in the effort from the start, the transition of the business’s decision rights was smooth.

To be clear, not all decisions need to be made by the central team, which could overstretch it (especially if it’s a small group) and divert attention from specific priorities. Rather, cross-functional decisions and those that are highly material to the full company are best suited for central-team oversight. 3 For more on how to classify and make decisions appropriately, see Aaron De Smet, Gerald Lackey, and Leigh M. Weiss, “ Untangling your organization’s decision making ,” McKinsey Quarterly , June 21, 2017. The right to make other decisions, such as those that involve single functions, can be assigned to leaders or teams that are more closely associated with those units.

Find the structure that best fits your sustainability agenda—and your organization as a whole

Reporting structure is usually the first topic that comes to mind when companies consider organizational redesigns, and so the first question we are often asked is, “Which organizational structure is ideal for capturing the full potential of sustainability?” In reality, there is no single “right” answer for the design of a sustainability organization and no one-size-fits-all approach, beyond the general principle that the structure should be well integrated into—and compatible with—the rest of the company’s setup.

There is no single ‘right’ answer for the design of a sustainability organization beyond the general principle that the structure should be well integrated into—and compatible with—the rest of the company’s setup.

That said, we do see that some organizational models tend to be more effective than others at elevating sustainability as a true strategic priority (Exhibit 2).

Compared with two other models that we see most often today in which sustainability is embedded in a support function or fully decentralized within business units, these three models help link sustainability to an overall strategy and give a sustainability organization real decision rights:

• Large central team with few business-unit resources. In this model, a large central team plans—and maintains the decision rights to—most sustainability initiatives and also coordinates with individual business units that are actively working on specific sustainability issues or have expertise related to the topic. The central team incubates sustainability initiatives before handing them off to the business units and supports activities that have no other natural owners in the organization. It also ensures that sustainability priorities across the company have sufficient budgets and staff and that the organization stays focused on its priority topics. A central team may also have the best view of broader sustainability trends and stakeholder demands, though it’s likely less equipped than business units to respond to new sustainability-related market opportunities and risks. As an example, Newmont Goldcorp (a leading gold-mining company) was prompted by shareholders and its board to improve its management of sustainability issues after completing a merger. It responded quickly, creating a centralized sustainability group from 2002 to 2007 to design and drive the implementation of global environmental standards across its operational sites. This central group also managed decision making and the allocation of execution resources to sustainability issues.
• Lean central team with decision rights and many business-unit resources. In this structure, the prioritization of sustainability topics is largely a top-down process, led by the lean central team, to ensure that a common company-wide agenda and targets are in place. Business units have a mandate to develop specific initiatives to achieve company-wide goals, which they do by deploying their own resources. Business units also have the flexibility and resources to set up and work on sustainability initiatives of their own, in line with the central team’s guidance. In our experience, this structure can be most effective at companies that have already embedded sustainability in the organizational culture, which increases the likelihood that sustainability becomes a true cross-functional effort. Since 2019, this model has been in place at International Paper, a leading pulp-and-paper company. Its lean central team sets the company-wide sustainability agenda and focuses on both managing external relationships and integrating internal efforts. Meanwhile, business-line leaders drive the sustainability agenda. They set targets, develop the company’s sustainability initiatives, assume responsibility for delivering on those initiatives (including the coordination of resources), and embed sustainability into day-to-day operations.
• Central team that deploys agile or SWAT teams to business units. This structure puts a central team in charge of deploying sustainability-focused task forces to individual business units. Once a task force is embedded in a business unit, it helps with the planning and initial execution of that unit’s priority sustainability initiatives and builds capabilities so that the business can eventually run its own initiatives, once the task force leaves to support another unit. This facilitates the deployment of sustainability expertise and the sharing of best practices across the company, as well as the nimble reallocation of resources in response to the rapidly changing sustainability landscape. From a talent-development perspective, this model (what we call the “helix organization ”) also allows for a clearer separation of leaders—between those who help individuals develop capabilities and those who oversee employees’ day-to-day work. The result is that sustainability talent can be developed both ways.

Prioritize the design of processes and governance—rather than reporting lines—that account for sustainability’s complexity and dynamic nature

In our work on organizational redesign, we have found that many companies’ default mode is to focus solely on reporting structure. But we know from experience and research that going beyond “lines and boxes” corresponds with a much higher chance for redesign success: in a McKinsey Global Survey on organizational redesigns , respondents were nearly three times more likely to report successful redesigns if they focused on improving multiple elements of the organization (for example, performance management, business processes, and culture), not just on changing reporting lines. With respect to sustainability, which involves reorganizations that are more complicated and multifaceted than those of a typical function—and priorities that can shift much more quickly than in other areas of the business—we have found that it’s critical to think about redesigning sustainability-related processes and governance early on. Several guiding principles can help with this kind of effort.

For one, companies’ processes for making sustainability-related decisions should be robust and clearly define when an issue or decision should be escalated from the business unit to the central sustainability team. Decision-making processes should also include frequent discussions among stakeholders and fast decision cycles so that cross-functional or high-level topics can be identified and resolved quickly.

In most cases, the central team should be empowered to make decisions on topics that individual business units can’t resolve on their own. If the central team, in turn, finds it can’t resolve high-priority issues, it can escalate them to the executive team or a C-suite sustainability council. We have seen many companies fail to adapt their cadence on engaging with sustainability issues as they would with other topics. But that’s what sustainability necessitates, since many of these topics require quicker decision making and responses than other business issues. For many companies in traditional and mature sectors (for example, petrochemicals, cement, steel, and other heavy industrials) that are used to longer decision-making cycles, this may require a significant mindset shift. The executive team can help effect such a shift by clarifying that sustainability is a strategic priority that requires different decision-making approaches.

Another principle of effective sustainability processes and governance pertains to capital allocation. Sustainability investments often have different risk–return profiles and greater uncertainty than other, more traditional investment types. In our experience, many companies that lead on sustainability have set aside a separate pool of funds dedicated to sustainability initiatives, defined different hurdle rates for sustainability investments, introduced an internal carbon price to account for carbon impact and related risks, and put in place integrated financial and sustainability criteria to facilitate capital-allocation and M&A decisions.

Finally, it’s valuable for companies to develop sustainability-specific performance metrics. While the specific metrics will vary depending on the topic, the same principles of good performance management of other business activities also apply to sustainability: setting measurable targets (both financial and nonfinancial), establishing incentives (such as linking compensation to sustainability performance), and putting in place regular performance reviews of sustainability.

Sustainability is no longer an issue of compliance for most companies but rather a strategic and operational one. Once senior leaders integrate sustainability into their corporate strategy, they will benefit from having a dedicated organization to support their sustainability efforts. There is no right structure that applies to every company; each will need a structure of its own and will likely need to adjust this structure as business conditions and requirements change. A well-designed sustainability organization, we find, can give the company the capabilities that it needs to capture value and manage risks from sustainability in a systematic and even transformational way.

Aaron De Smet is a senior partner in McKinsey’s New Jersey office; Wenting Gao is an associate partner in the Houston office, where Thomas Hundertmark is a senior partner; and Kimberly Henderson is a partner in the Washington, DC, office.

This article was edited by Daniella Seiler, a senior editor in the New York office.

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How to Create a Sustainability Plan for Your Business: Decarbonization Roadmap Example

Does your business have a sustainability plan? Increasingly, sustainability planning will be an important focus for businesses everywhere, as governments and consumers worldwide have begun demanding more responsible and eco-conscious behavior from corporations.

However, when it comes to sustainability, many businesses struggle to balance their priorities and lack a coherent strategic roadmap to bridge the gap between planning and implementation. According to Forbes, 90% of business executives think sustainability is important, but only 60% have actually implemented a sustainability plan.

We’re hoping to help change that by giving businesses roadmap tools to easily organize, implement, and scale their sustainability initiatives and decarbonization efforts.

Why is a sustainability plan important?

A sustainability plan is a strategy to improve the long-term viability of a business through the responsible use of social, economic, and environmental resources. Although implementing a sustainability plan may increase business and operating costs upfront, ultimately sustainability planning improves business health and profitability in the following ways:

Benefits of sustainability planning

1. Enhance brand value and increase customer loyalty: 88% of consumers report that they will be more loyal to a company that supports environmental or social issues. 66% of consumers report that they will spend more for a product from an eco-conscious brand.

2. Reduce costs and increase operating profits: A study by McKinsey found a significant correlation between a company’s responsible use of resources and improved financial performance. The same study found that a business can improve operating profits by up to 60% by reducing their use of carbon, water, and raw materials.

3. Increase sales and profitability: According to NYU, sales of products that had visible sustainability claims grew 5.6x faster than products that didn’t between 2013 and 2018. In 2015, 53% of businesses that implemented a sustainability plan reported increased profits.

4. Attract better talent: As Millennials and Gen Z begin to make up the majority of today’s workforce, employees prioritize working for sustainable companies. Almost 40% of millennials report that they have chosen a job because of a company’s sustainability plan and nearly 75% report that they would accept a smaller salary to work at a company that is environmentally responsible.

5. Maintain supply chain partnerships: According to Deloitte, 46% of businesses have begun to require their supply chain partners to meet specific sustainability criteria.

6. Reduce governmental and regulatory intervention: Environmental consciousness and responsible use of resources can reduce adverse effects of regulatory intervention. Since 1972, worldwide environmental laws have increased by 3800% . With the US, EU, Australia, and other governments around the world taking aggressive actions toward reducing carbon emissions, businesses that fail to implement sustainable practices now may be exposed to costly financial and regulatory pressure in the future.

7. Capitalize on new business opportunities: Over the past three years, governments worldwide spent $1.2 trillion improving energy efficiency and sustainability. With this trend expected to increase, sustainable businesses will be positioned to capitalize on new market opportunities.

Creating a sustainability plan

Creating a sustainability plan may seem like a daunting proposition for many businesses. Afterall, businesses have many moving parts and big goals like ‘reducing carbon emissions’ may seem vague, impractical, and impossible to achieve.

Pre-planning

Before creating a sustainability plan, it’s important for business leaders to undertake the following steps to narrow their focus into achievable goals:

1. Educate themselves on sustainability: It’s important for businesses to understand the importance of sustainability and educate themselves on the laws and compliance standards that will impact their business (both now and in the future). Doing so will give weight to their sustainability plan, help them identify opportunities for improvement, and gain buy-in from key stakeholders within their organization. By recognizing the importance of sustainability and educating themselves on these crucial aspects, businesses can also enhance their corporate reputation and foster a culture of responsibility and innovation.

2. Identify high-level areas for improvement: Next, business leaders should assess their business to identify broad areas for improving sustainability. This stage isn’t the time to get hung up on details or discouraged by specifics, but rather to help direct their focus and develop their vision.

3. Develop an overarching vision: From there, it’s important for business leaders to develop an overarching vision for their sustainability initiatives. This vision will help guide the creation of their sustainability plan and inspire action from other members of their business.

4. Break their vision down into specific, measurable goals for improving sustainability: At this point, it’s time to outline specific, measurable goals for improving sustainability. The information gained during the first three steps will help identify specific goals.

Designing a roadmap

Business roadmap tools can help businesses implement their sustainability plan by breaking down each goal into realistically achievable steps. By helping outline the following, business roadmap tools make implementing a sustainability plan more feasible, efficient, and less likely to be derailed by unforeseen circumstances:

1. Define Challenges: First, the business needs to understand what challenges it must overcome to become sustainable and identify areas for improvement.

2. Outline Objectives: Next, the business matches objectives, or goals , to each challenge.

3. Assess Capabilities: Once objectives have been defined, the business needs to assess its current capabilities to understand which objectives it already has to the capacity to achieve, as well as what tools it needs to invest in.

4. Assign Actions: Next, the business assigns specific actions to bridge any gaps in capabilities.

5. Prioritize Initiatives: The business then groups actions into logical packages of work known as initiatives to organize their execution.

6. Generate a Roadmap: Finally, the business organizes initiatives on a time horizon, generating a visual document known as a roadmap.

Today’s roadmap tools provide features like capability maps, pre-built content, interactive prioritization matrices, and cost-benefit calculators that make generating a sustainability roadmap faster and more streamlined.

Implementation

Once the sustainability roadmap has been generated, business leaders can easily disseminate this visual document to other stakeholders, departments, or members of their team. Doing so will ensure that each facet of their organization will be working in lockstep toward achieving their sustainability goals.

By accounting for potential hurdles, assigning correct actions to each department, and creating a time horizon for each initiative, roadmap tools allow businesses to easily implement a sustainability plan that has a high chance of success.

Decarbonization roadmap example

Below is an example of an organization using a roadmap tool to create a decarbonization roadmap.

Step 1: Defining challenges

First, the organization defines the challenges they’ll face in reducing their carbon emissions.  

In this example, the business has identified 5 key challenges:

• Sourcing more sustainable materials.
• Optimizing transportation and logistics.
• Implementing energy-efficient practices.
• Administering waste reduction strategies.
• Promoting eco-friendly behavior by their consumers.

(Notice that often challenges are really opportunities. By tackling these five obstacles, the business will be greatly reducing its operating expenses, increasing its efficiency, and using their sustainability plan to build customer equity.)

Step 2: Assigning objectives to each challenge

Next, the company creates an objective, or goal, that corresponds to each challenge.

By linking objectives to challenges, a decarbonization roadmap helps the company direct and refine its efforts. Below is a summary of objectives that the roadmap tool generated:

Step 3: Assessing their capabilities

At this point, the company has a list of goals – but does it currently possess the organizational capabilities it needs to achieve them?

Mapping their current capabilities helps the organization understand what it already has to capacity to do, but also shows them what capabilities they need to invest in.

Step 4: Assigning actions to improve capability

Next, the business in this example generates a list of specific actions they need to take in order to improve their capabilities and accomplish their objectives.

Each action is assigned to a specific department to ensure that the entire organization is doing its part to effectively implement a sustainability plan. While building their decarbonization roadmap, big goals that once seemed hard to achieve become increasingly granular, and thus achievable.

Step 5: Creating initiatives

After defining the correct actions, the company groups these actions into initiatives. Doing so allows them to create logical packages of work that can be easily assigned throughout the organization.

An interactive prioritization matrix helps the company quickly assess the risk and reward of each initiative and prioritize them accordingly.

The roadmap tool generates a summary of their initiatives based on the priority they established.

Step 6: Generating a decarbonization roadmap

Next the business creates a time horizon for their initiatives. The roadmap tool takes all of this information and generates a visual document of the decarbonization roadmap, which can be easily shared throughout their organization.

The decarbonization roadmap provides a time horizon that describes which initiatives should be delivered in which sequence, based on priority and capability. This decarbonization roadmap will help the company implement and execute its sustainability plan – both in the near-term and in the future.

Start building your sustainability plan today

Does your organization make up the 40% of businesses that haven’t implemented a sustainability plan? Or are you looking to improve organization for your existing plan? We invite you to try Jibility – our free strategic roadmap tool shown in the examples above.

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How to prepare a Sustainability Business Plan

• 10 min read

A sustainability business plan should integrate environmental, social, and economic considerations into the strategic planning and operations of the business. Here are the key elements a sustainability business plan should include:

• Executive Summary: This section provides an overview of your business and your sustainability plan. It should be compelling and attract the interest of your audience.
• Business Description: A brief summary of your business including what you do, how you do it, the industry you’re in, and the markets you serve.
• Sustainability Vision and Goals: Define the sustainability goals for your business. This could include environmental goals such as reducing greenhouse gas emissions, social goals such as improving worker safety or community involvement, and economic goals such as improving operational efficiency or reducing costs. You should also state your broader vision for sustainability and how it aligns with your business model and brand.
• Environmental Impact Assessment : Analyze your business’s current environmental footprint. This can include your energy use, waste production, water use, and other environmental impacts. This assessment will provide a baseline from which you can track progress.
• Social Impact Assessment: Consider the social impacts of your business, such as labor practices, community involvement, diversity and inclusion, and human rights issues.
• Economic Impact Assessment: Review your company’s economic sustainability, including your business model, financial health, and risk management practices.
• Sustainability Strategies and Actions: Outline specific strategies and actions your business will take to achieve its sustainability goals. This could include new technologies, operational changes, partnerships, or other initiatives. You should also explain how these strategies align with your business objectives.
• Performance Indicators and Targets: Define clear, measurable indicators of progress towards your sustainability goals, and set specific targets for these indicators.
• Implementation Plan: Detail how you will implement your sustainability plan, including the roles and responsibilities of different members of your organization, any necessary training, resources required, and a timeline for implementation.
• Monitoring and Reporting: Describe how you will monitor progress towards your sustainability goals and how you will report this progress to stakeholders. This could include internal reporting mechanisms as well as public reporting such as sustainability reports or disclosures to investors.
• Review and Continuous Improvement: Plan for regular reviews of your sustainability plan to assess progress and make necessary adjustments. This should be a dynamic process that allows for continuous improvement.
• Risk and Opportunity Assessment: Lastly, it’s important to identify any potential risks and opportunities associated with your sustainability plan. This will help you anticipate any challenges and maximize the benefits of your sustainability efforts.

Remember, sustainability is about the long term, so your plan should be designed with this in mind. It should be flexible enough to adapt to changing circumstances and should be regularly reviewed and updated to ensure it remains effective and relevant. Measuring non-financial items in a business plan is crucial as it provides insight into aspects of the business that, while not directly tied to financial performance, can significantly impact the overall health and sustainability of the business. Therefore, tracking them can provide valuable insights for decision-making and strategy development.

Table of contents

How to transfer co2e emissions into costs or benefits in a business plan, how to transfer governance related risks into costs or benefits in a business plan, how to transfer social topics into costs and benefits in a business plan.

Transferring CO2e (carbon dioxide equivalent) emissions into costs or benefits in a business plan can help businesses understand the financial implications of their environmental footprint and support decision-making processes. Here’s how you can do this:

• Carbon Pricing: Assign a price per metric ton of CO2e emitted, which can be based on carbon markets, carbon taxes, or internal carbon pricing (if your company has set one). Carbon pricing mechanisms vary by region, so research the applicable rates in your area.
• Calculate CO2e Emissions: Estimate your company’s annual CO2e emissions by considering direct emissions (Scope 1), indirect emissions from purchased energy (Scope 2), and other indirect emissions from the value chain (Scope 3). You can use emission factors provided by organizations like the IPCC, EPA, or other regional authorities to estimate emissions for various activities.
• Monetize Emissions: Multiply the total CO2e emissions by the carbon price per metric ton to determine the total cost of your emissions. This monetized value represents the financial risk associated with your emissions and can be incorporated into your business plan.
• Evaluate Reduction Strategies: Identify potential emission reduction strategies, such as energy efficiency improvements, renewable energy adoption, or waste reduction initiatives. Estimate the cost of implementing these strategies and the potential reduction in CO2e emissions.
• Calculate Cost Savings and Benefits: Assess the financial benefits of implementing emission reduction strategies by considering factors such as operational cost savings, reduced carbon pricing liability, and potential revenue from carbon credits or renewable energy certificates. Compare these benefits to the costs of implementation to determine the return on investment (ROI) for each strategy.
• Incorporate Costs and Benefits into the Business Plan: Integrate the monetized costs and benefits of CO2e emissions and reduction strategies into the financial projections and risk assessments of your business plan. This can help you make informed decisions about which strategies to prioritize and how they will impact your bottom line.
• Highlight Non-financial Benefits: While monetizing CO2e emissions is important, it’s also crucial to consider non-financial benefits such as enhanced brand reputation, improved employee morale, and reduced regulatory risk. Incorporate these qualitative benefits into your business plan to provide a more comprehensive understanding of the value of emission reduction initiatives.

By quantifying the costs and benefits associated with CO2e emissions and reduction strategies, businesses can make more informed decisions about their environmental impact and incorporate sustainability considerations into their overall business strategy.

Governance-related risks refer to the potential pitfalls associated with the way a business is managed and controlled. These can include regulatory compliance, ethical conduct, transparency, decision-making processes, board effectiveness, and shareholder relations, among others. Translating governance risks into costs and benefits within a business plan can be complex due to the largely qualitative nature of these risks. However, it’s possible to approximate and project potential financial impacts. Here’s how you can approach this:

• Identify Governance Risks: Start by identifying the key governance risks your business faces. These might include regulatory non-compliance, lack of transparency, poor decision-making processes, or ineffective board leadership.
• Quantify Potential Costs: For each risk, estimate the potential cost if that risk were to materialize. This could be in the form of fines for non-compliance, loss of business due to reputational damage, increased cost of capital due to investor mistrust, or loss of productivity due to poor decision-making.
• Evaluate Mitigation Strategies: Identify strategies to mitigate each governance risk. These might include improving compliance systems, enhancing transparency, implementing better decision-making processes, or investing in board training and development.
• Calculate Implementation Costs: Estimate the cost of implementing each mitigation strategy. This could include direct costs like investment in new systems or training, as well as indirect costs like time and resources.
• Assess Potential Benefits: For each mitigation strategy, assess the potential benefits. These might include reduced likelihood of fines, improved reputation, lower cost of capital, or increased productivity.
• Incorporate Costs and Benefits into the Business Plan: Integrate the potential costs and benefits of governance risks and their mitigation strategies into your business plan. This should inform your risk management strategy, financial projections, and operational planning.
• Highlight Non-financial Benefits: Beyond direct financial impacts, good governance practices can offer significant non-financial benefits. These might include improved stakeholder relationships, increased trust and credibility, and better strategic decision-making. Although these benefits may be harder to quantify, they should still be incorporated into your business plan as they can significantly impact your business’s long-term success.

By integrating governance risks into your business planning, you can proactively manage these risks and make more informed decisions about your governance structures and practices. Remember, good governance isn’t just about avoiding risk—it’s also about creating value for your business and its stakeholders.

Social topics, also known as social factors or social impacts, refer to the effects that a business’s activities have on its stakeholders, including employees, customers, communities, and society at large. They encompass a wide range of issues, including labor practices, human rights, health and safety, diversity and inclusion, and community engagement. Incorporating social topics into the costs and benefits of a business plan can provide a more comprehensive understanding of a business’s societal impacts and their potential financial implications. Here’s how you can approach this:

• Identify Key Social Topics: Identify the social topics that are most relevant to your business. These might be determined by your industry, geography, stakeholder expectations, or other factors.
• Quantify Potential Costs: For each social topic, estimate the potential costs if the associated risks materialize. For example, poor labor practices could lead to increased turnover, decreased productivity, or fines and lawsuits. Similarly, a lack of diversity and inclusion could lead to missed market opportunities, reputational damage, or regulatory penalties.
• Evaluate Mitigation or Improvement Strategies: Identify strategies to mitigate social risks or improve social performance. This could include investing in employee training and development, implementing diversity and inclusion initiatives, improving health and safety practices, or engaging more actively with local communities.
• Calculate Implementation Costs: Estimate the cost of implementing each strategy. This could include direct costs like investment in new programs or initiatives, as well as indirect costs like time and resources.
• Assess Potential Benefits: For each strategy, assess the potential benefits. Improved social performance can lead to a range of benefits, such as increased employee engagement and productivity, enhanced brand reputation, improved customer loyalty, and stronger community relations. Some of these benefits may result in direct financial gains, while others may contribute to long-term value creation.
• Incorporate Costs and Benefits into the Business Plan: Integrate the potential costs and benefits of social topics and their mitigation or improvement strategies into your business plan. This should inform your financial projections, operational planning, and strategic decision-making.
• Highlight Non-financial Benefits: In addition to the financial impacts, consider the non-financial benefits of addressing social topics. These can include enhanced stakeholder relationships, improved risk management, and alignment with societal expectations and trends. While these benefits may be harder to quantify, they can significantly contribute to your business’s long-term success and sustainability.

By integrating social topics into your business planning, you can proactively manage social risks, leverage social opportunities, and contribute to societal well-being while also enhancing your business’s performance and value creation.

Finally, by integrating double materiality into your sustainability business plan, you can ensure that you’re considering both the impacts of ESG factors on your company and the impacts of your company on society and the environment. This can help you manage risks, leverage opportunities, and contribute to sustainable development while also enhancing your company’s performance and value creation. Contact us to prepare your Sustainability Business Plan.

Related Links:

• Scope 1,2,3 emissions vs Co2 footprint
• Pricing for Co2 Emissions
• Increase the readability of your corporate reports
• What can a company do to reduce energy consumption?

Crafting a sustainability business plan is crucial for integrating environmental, social, and economic considerations into your business operations. A well-rounded plan includes an executive summary, business description, sustainability vision and goals, and assessments of environmental, social, and economic impacts. By outlining specific strategies, performance indicators, and implementation plans, businesses can track progress, manage risks, and capitalize on opportunities. Regular reviews ensure continuous improvement, promoting long-term sustainability and success.

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Georg Tichy

Georg Tichy is a management consultant in Europe, focusing on top-management consultancy, projectmanagement, corporate reporting and fundingsupport. Dr. Georg Tichy is also trainer, lecturer at university and advisor on current economic issues. Contact me or Book a Meeting View Author posts

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Making the Business Case for Sustainability

• 13 Apr 2021

Once thought to be opposing goals, sustainability and financial success now go hand-in-hand for many businesses. Some, however, may be skeptical of the claim that a business can do well by doing good. How can you make the business case for sustainable practices to skeptical decision-makers in your organization?

Here are key terms to use to frame your discussion, several ways sustainable business practices can pay off financially, and tools to leverage when pitching sustainability to stakeholders.

Access your free e-book today.

Corporate Social Responsibility and the Triple Bottom Line

Corporate social responsibility (CSR) is a business model in which for-profit companies seek to create social and environmental benefits while pursuing organizational goals. Whereas companies typically focus on the bottom line, or generating profit, socially responsible corporations focus on the triple bottom line.

The triple bottom line can be described as the “three Ps”: people, the planet, and profit. In other words, in addition to striving to succeed financially, socially responsible companies commit to measuring success through their impact on people—employees, customers, and society at large—and the environment.

It’s important to not think of sustainability initiatives as a financial trade-off, but rather, as a wise financial strategy.

“There’s good reason to believe that solving the world’s problems presents trillions of dollars’ worth of economic opportunity,” says Harvard Business School Professor Rebecca Henderson in the online course Sustainable Business Strategy .

Leading with purpose can positively impact both the planet and your business’s financials. Here are eight benefits of a sustainable business strategy you can use when making the case to your internal team.

8 Benefits of Sustainability in Business

1. drives internal innovation.

Making the switch to sustainable business practices provides an opportunity for new, innovative ideas to grow. Consider this your chance to question the way your organization operates. Are there inefficiencies in your production process? Are there alternatives to how you currently source production materials? What equipment or technology could make your internal processes and product delivery more energy efficient?

These types of questions reveal opportunities to save money on energy and reassess how ethically you source materials. They can also shake up your mindset of “this is how we’ve always done it” and prompt innovative ideas for new business opportunities.

Related: 23 Resources for Mobilizing Innovation in Your Organization

2. Improves Environmental and Supply Risk

Investing in more sustainable practices can pay off in the form of risk management. By using renewable resources—such as wind, water, and solar power—your company has greater security over its energy sources.

This can also offer financial benefits. For example, if your company switches from coal to clean energy, like ice cream company Ben & Jerry’s , you can avoid the hassle and cost when coal prices skyrocket.

3. Attracts and Retains Employees

Being a sustainable company can have a big impact on the talent you attract and retain. A recent survey conducted by clean energy company Swytch found that nearly 70 percent of employees report that their company’s strong sustainability program impacts their decision to stay with it long term.

The same survey reports that 75 percent of millennials—who will make up three-quarters of the workforce in five years—would take a decrease in salary if it meant working for an environmentally responsible company. Nearly 40 percent selected one job over another because of an organization’s sustainability practices.

Committing to sustainability puts your company’s values at the forefront, which can attract employees and job seekers who share those values. Hiring and retaining the right team can save your organization the time and money of having to rehire for multiple roles.

4. Expands Audience Reach and Builds Brand Loyalty

A focus on sustainability can not only help attract and keep the right employees, but build a broader, more loyal customer base.

Research in the Harvard Business Review shows that sustainable businesses see greater financial gains than their unsustainable counterparts. In addition, consumers’ motivation to buy from sustainable brands is on the rise. For instance, products with an on-package sustainability claim delivered nearly $114 billion in sales in 2019—a 29 percent increase from 2013—and products marketed as sustainable grew more than five times faster than those that weren’t.

Adopting sustainable practices and marketing appropriately can enable your business to reach new, sustainably-minded market segments while building brand loyalty among your customer base.

5. Reduces Production Costs

One of the simplest business cases for sustainability is that using fewer resources, or more sustainable ones, can decrease production costs.

Examining your supply chain, production process, and energy use at brick-and-mortar stores and office buildings can help identify places where cutting back on finite resources and switching to greener alternatives is a cheaper option.

“Some firms invest in sustainability because the business case is so glaringly obvious, they’d be foolish not to,” Henderson says in Sustainable Business Strategy.

6. Garners Positive Publicity

Another outcome of opting for sustainability is the positive publicity it can garner. Especially if it’s a divergence from your business’s previously established practices or industry standards, your switch to sustainability and investment in the environment can call for press releases and announcements.

Side effects of this positive publicity can be employee pride, sustainably-minded job applicants, and increased customer loyalty and referral rates.

7. Helps You Stand Out in a Competitive Market

In a competitive market, any way to differentiate your product and brand from your competitors is valuable. Sustainable business practices can be a positive way to stand out if your competitors haven’t adopted those practices themselves or match them if they’ve already made the switch to sustainability.

Calling back to research in the Harvard Business Review , consumers’ focus on brands’ sustainability practices is on the rise, and your business’s practices could be the sole reason consumers choose your product over your competitors’.

8. Sets the Industry Trend

Sustainability not only helps your company stand out against competitors but also influences their behaviors. If your organization is one of the first in its field to adopt sustainable practices, it could set your business apart as a trend-setting leader and prompt other companies to follow suit.

“The leaders, the firms who are driving real change and reaping the benefits of being first-movers are often as motivated by a driving desire to make a difference as they are by the wish to make money,” Henderson says in Sustainable Business Strategy.

If the sustainability trend continues, it could become the norm in your industry. When many corporations adopt sustainable practices, they have the potential to make a real impact on the world’s largest problems.

Tools for Pitching a Sustainable Business Strategy

When pitching sustainability to internal decision-makers, use the data, projections, and anecdotal evidence at your disposal. Here are a few tools to help you make your case.

1. Data Visualizations

Data visualizations are graphical representations of data. When making the case for sustainability, you may create a graph that shows the increasing prices of fossil fuels, a chart that shows consumer preferences for sustainable companies, or a visual forecast of what future revenue could look like if a piece of sustainable technology were purchased.

Some data visualization tools you can use are:

• Microsoft Excel & Power BI
• Google Charts
• Zoho Analytics
• Datawrapper

Visualizations are a clear, concise way to tell the story of why you should adopt a sustainable business strategy.

Related: Bad Data Visualization: 5 Examples of Misleading Data

2. Anticipated Return on Investment Formula

When advocating for specific sustainability projects or equipment purchases, it can be useful to calculate the anticipated return on investment (ROI) . Calculating the anticipated ROI shows internal stakeholders how much financial return the business can expect as a result of investing in the sustainable practices you’re proposing.

To calculate anticipated ROI, use the following formula:

ROI = (Net Profit / Cost of Investment) x 100

In project management, the formula is written similarly but with slightly different terms:

ROI = [(Financial Value - Project Cost) / Project Cost] x 100

3. Case Studies of Businesses with Successful Sustainability Initiatives

Real-world examples can go a long way when proposing new ideas. There are plenty of businesses that have successfully executed sustainability initiatives and put the triple bottom line at the forefront of their business strategies. A few examples include:

• Bank of America
• AstraZeneca
• Ben & Jerry’s
• Levi Strauss

Dig deeper into what made these firms’ efforts successful, and use that as fuel for your company’s strategy.

Furthering Your Sustainable Business Education

If you and your colleagues want a strong foundation for making the shift to sustainable business, consider taking Sustainable Business Strategy . The online course presents groundbreaking concepts using the HBS case method and asserts that sustainable capitalism has the power to influence the world’s most pressing challenges.

By bolstering your knowledge of the space, your organization could become one of the many success stories of those that create shared value from sustainable business practices.

Are you interested in leading your business to a more sustainable future? Explore our three-week online course Sustainable Business Strategy to become a purpose-driven leader.

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• Environmental management

Develop your sustainability action plan

An action plan is a useful tool to help your business take practical steps towards being sustainable.

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Why you need a sustainability action plan

Download a sustainability action plan template.

Sustainability is a journey. By continuing to make changes to your business for the good of the planet and people around you, you can:

• improve profitability and reduce costs
• form new partnerships with local communities and suppliers
• build your reputation and stay competitive
• appeal to new customers
• attract and retain employees
• reduce your carbon footprint
• adapt to climate change.

It's fine if your sustainability journey looks different to that of other businesses. What matters most is that you start now and keep going. 

A sustainability action plan helps you figure out what to do and stay on track.

You can also use your plan to promote your progress to customers.

Our template includes a table that sets out your objectives, costs and more. You can edit the template and add or remove rows as you need.

Sustainability action plan template

Our template steps you through the process of developing a sustainability action plan with examples to guide you.

You may want to check our tips below before you start.

1. Manage your approach to sustainability

Good sustainability management means you have the right supports in place to achieve your sustainability objectives. As you develop your plan, consider how you will manage the changes you want to make.

You might need to introduce new practices and procedures to help you. For example:

• Can you include a sustainability update in your staff meetings?
• Can you add your sustainability actions to your current task management system?
• Can you allocate certain hours for people or block out time in your calendar for sustainability efforts each month?
• Do you need to collect new data (such as employee satisfaction scores) to measure the benefits of your sustainability actions?

2. Consider simple changes as well as ones that take longer to achieve

Many sustainability actions involve a simple change in process or behaviour. Others need long-term planning and investment.

Consider a mix of both, so you can see positive differences soon while working towards bigger achievements.

3. Estimate your returns to help you choose your actions

Developing your plan involves doing some sums. For each sustainability action you consider, estimate the cost and the likely return on investment.

Some benefits can be tricky to measure but try to be as accurate as you can. This helps you compare different actions and focus on ones that make a real difference to your business.

4. Bring your team on the journey

Sustainability is a team effort. Explain to your team why sustainability is important and what you need them to do. Be clear about who's responsible. Assign a team or individual to each sustainability action in your plan.

Consider creating a new role to drive sustainability, such as a chief sustainability officer or sustainability manager. If it's a voluntary role on top of someone's current role, make sure you give them enough time to do what they need to do.

5. Update your plan as you go

As your business changes, your plan needs to change to make sure you're heading in the right direction.

Decide how often you want to review your plan and set aside the time with your team in advance.

It's a good idea to keep a record of each version of your plan.

Remember to celebrate your progress and share it with customers. Learn how to promote your sustainable business .

Find out how to promote your sustainable business.

Use our checklist to help your business be more sustainable., was this page helpful, thanks for sharing your feedback with us..

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5 Impactful Sustainable Business Practices

May 17, 2024

What are sustainable business practices? 

Factors that drive sustainable business practices, 5 sustainable business practices to get started .

Sustainability is no longer a choice; it's a necessity.

Social developments have flourished over the last 100 years, but the planet's health has constantly declined. Global temperatures have risen dramatically, and there's a need for action to avoid the worst impacts of climate change.

Companies are now making a concerted effort to implement environmental engineering and sustainable business practices to reduce their carbon footprint. The fight against climate change starts with small steps that can make a huge impact. Let's look at what your business can do to make a difference.

Sustainable business practices refer to the strategies and processes that businesses use to reduce environmental impact, increase positive social impact, and create long-term value for their stakeholders. These practices seek to minimize waste, conserve resources, and reduce emissions.

Sustainable businesses focus on creating value for all stakeholders, including customers, employees, suppliers, communities, and the environment. 

IBM describes sustainability as a company's strategy for reducing the environmental impact in its industry. A clear and concise plan for your brand's eco-friendly endeavors keeps your team striving toward a common goal. 

But how can your company contribute? Whether you're an SME, start-up, or enterprise, following best practices in social, environmental, and economic areas can be the beginning of a greener tomorrow. You can ditch plastic packaging, encourage cycling to work, or even nurture a positive atmosphere in the office – start with what works for you and your team.

An issue for some is figuring out where to start. It's easy to look at the pollution caused by big corporations and feel helpless. But, if you create an environment that makes people see sustainability as possible, they'll demand it from their favorite brands. If larger companies see consumers making more eco-friendly purchases, they will optimize their processes keeping environmental and social impact in mind.

Environmental, social, and governance (ESG) investing

Conscious investors consider environmental, social, and governance (ESG) standards to evaluate if a brand is worth putting their money behind. Think Shark Tank for sustainable businesses. 

When you think of sustainable business practices, the first thought that comes to mind is that changes cost money – and with good reason. Those fighting climate change or creating a more eco-friendly brand aren't always concerned about the bottom line.

But applying your business acumen to carbon-fighting concepts is a recipe for success. Engagement, teamwork, commitment, clarity, and strategy are all transferable skills for sustainable practices.

Environmental considers how a business protects the environment. Social looks at how a company treats its team, customers, suppliers, and communities. Governance is related to leadership and shareholder rights. Investors can set their own standards, but these three areas sway the decision of where exchange-traded funds (ETFs) will go. 

As a famous comic book hero’s uncle once said, "With great power comes great responsibility." A new wave of investors is more willing to put their money where their mouth is and back their values – supporting a business following its ESG criteria funds initiatives that can have a lasting impact. According to Morningstar , $142 billion was invested into sustainable funds globally in the final quarter of 2021, a 12% increase over Q3. 

With SMEs making up the majority of businesses around the globe, they must take advantage of ESGs as soon as possible. By leveraging sustainable business practices from the outset, an indie business can position itself for ESG investment. 

EY's Global Private Equity Survey showed that two-thirds of investors consider ESG factors when considering companies to back. Investors coming from more prominent firms may already have to comply with environmentally friendly practices or adhere to a green policy. SMEs they invest in should share similar values and sustainable strategies. 

It's more than the bottom line

The real value of ESG criteria is striving toward a better planet. Yes, SMEs can benefit from outside investment, but encouraging companies to make a real and lasting change will outweigh any profit. 

How you operate in and outside of your business affects who you are as a brand. Being perceived as a sustainable company to attract your target audience can help your bottom line, but the environment's health should be at the heart of your efforts. Getting caught up in producing reports that would entice ESG investors isn't going to stop global warming, but the procedures inside can help make a positive impact. 

Ninety percent of the world's largest companies now produce corporate social responsibility (CSR) reports. On paper, that sounds great – what's not to love about conscious reporting? The issue is only a tiny amount are validated by third parties.

By self-reporting data that isn't verified, some figures may be stretched and not make the necessary impact to reduce CO2 emissions. ESG investment may come knocking, but are you really operating a sustainable model?

You don't have to be an eco-friendly or green business to be sustainable – every company, large or small, has a role to play. 

Small steps lead to big changes 

Reaching for Net Zero is something that businesses around the globe are striving for, but what is it? According to EPA , Net Zero requires using only as much energy as produced, maintaining a sustainable balance between water availability and demand, and getting rid of waste sent to landfills. The United Nations hopes to achieve Net Zero by 2050; every effort by your business helps to make that happen. 

Ambitious goals can seem impossible when you're at the beginning. How larger companies operate needs a sustainable overhaul, but Rome wasn't built in a day. One small business can't change how every multinational company behaves, but collectively demanding more can. By insisting on sustainable products from supply chains, larger companies will eventually have to change. 

The same goes for your own business. A small used car salesperson doesn’t have to suddenly restructure their model to sell electric vehicles. Implementing small changes has a ripple effect that leads to significant results.

Something as simple as moving to a paperless online calendar system can be a tiny step to becoming a more sustainable business. Removing unnecessary in-person meetings or providing a work-from-home environment can eliminate harmful CO2 emissions caused by commuting. 

The first step is devising and implementing a sustainable business plan, strategy, and practice for your company. By identifying and integrating ESG practices, your business can help fight climate change and improve its brand image at the same time.

Improving where you can is the first step

The $142 billion-dollar question is, where do you start? With sustainability at the forefront of many business strategies, finding what works for you can take substantial time and effort.

You'll find a barrage of products, tips, goals, and don'ts from leading publications and companies.

But where do you being?

By identifying what is achievable – just getting started is half the battle. You don't need to know it all or even get it right initially. Implement sustainable business practices that your team can follow, and you can adapt them as needed. Find out what works for you through trial and error – aim for what motivates you.

Going green can have many motivating factors. There are obvious positives, like reducing your carbon footprint and ethically sourcing supplies, but it has a lasting impact both internally and externally. Here are some driving factors you may have yet to consider.

Internal drivers:

• Organizational benefits: You could see improved working conditions, safety, and efficiency. 
• Financial benefits: Although helping the planet is the primary goal, you get tax incentives, government grants, and the previously mentioned ESG investors. 
• People benefits: Your team can take inspiration from the initiatives at work and apply them to their personal lives. By creating a sustainable environment, you're more likely to see improved ethical behavior from employees.

External drivers:

• Commercial benefits: Going green can also help you market yourself as such and appeal to consumers who care about sustainability. 
• Environmental benefits: The UN has targeted Net Zero. You can reduce your carbon emissions, help the planet, and provide a more sustainable future for the next generation.
• Communications benefits: Your eco-friendly image can make a lasting impression on potential customers and suppliers.

The pushback on creating a more sustainable business model usually comes down to cost. Companies fear that ethically sourcing supplies, adopting greener energy, or managing waste correctly could infer higher expenditure. But as access to all these factors has evolved, it has never been easier or more beneficial for an SME to go green.

Why are customers choosing green brands?

First Insight report that 62% of Generation Z and Millenials prefer to buy from sustainable brands. They’re also more likely to spend and purchase based on company values. 

A new generation of consumers has arrived and is more conscious of what they buy and who the seller is. In today's climate, positioning your brand as eco-friendly and highlighting your values is an effective way of connecting with modern customers. 

Consumers want to help the environment. They care about the working conditions of those who manufacture their favorite products. Being seen to make a difference has taken center stage. People are fearless in calling out brands online and on social media that need to make an effort to be more sustainable and save the environment. 

Customers want to highlight that they’re shopping ethically in the online sphere. Those conscious of sustainability or the environment can form tribes and purchase similar brands. 

Brands with similar values can open doors to different audiences. For example, Casetify partnered with The Earth Day network to design the first 100% compostable and biodegradable phone case. Marketing themselves as a greener company brought in a more eco-friendly consumer base for Earth Day.

Shoppers are naturally more conscious these days. But some sustainable have also played a part in spreading the word about conscious business and environmental protection.

Businesses need consumers to make a purchase that justifies their product. For example, a dishwasher tablet that reduces water usage in dishwashers by 20% requires the user to set their machine to 'eco-mode' 

Sourcing supplies from Fair Trade vendors means they need socially conscious customers willing to spend on their sustainable product. Consumers may be more mindful, but businesses must provide them with that platform to shop ethically.

Defining your brand is the first step. What is your mission; why do you want to be more sustainable? By having clear intent and achievable goals, you can lay out a strategy that your whole team can follow. You don't have to become a green brand overnight, but you can always work toward it. Sustainability doesn't define your business but implementing the practices certainly makes a difference. 

The changes you make in your business now will impact the future. Although instilling eco-friendly practices may prove challenging initially, you will reap the rewards faster than you think. 

Let's look at five thoughtful and impactful sustainable business practices that are a good starting point to transform your company.

1. Operate from a work-from-home/hybrid model 

Working from home has become a more viable option for employees in the past few years. With online migration, Green Journal reports that working from your home office four days a week can reduce nitrogen dioxide emissions by around 10%.

Travel has become far less commonplace with growing technologies in the online office. Giving your team the option to work from home or even a hybrid model benefits them and the planet. 

Companies can easily adopt a virtual approach that helps their team stay connected while building their customer base. For example, webinars are an excellent tool for reaching a global audience . In addition to collaborating with your team, you can use them to give a platform to industry leaders and connect with new leads. 

Naturally, in-person meetings, office days, and gatherings are still crucial for people socially. The key is to suit your model to your business – what works for an online marketing firm may not suit those operating a medical practice. 

Tips for a home office

Working from home has benefits, but it comes with unique challenges. Creating the right environment in your home can help separate your work and leisure life.

Here are some tips to help:

• Communicate with your team regularly.
• Layout boundaries with anyone at home with you during office hours.
• Have a separate space. It doesn't have to be a different room, but once work is finished, it's out of sight and mind. 
• Take breaks and make sure to move.
• Interact with other people (outside!).
• Prepare your lunch the night before.
• Clearly define your finish time.
• Talk to your employer.

Working from home can positively impact the environment without negatively impacting the person.

2. Go paperless

Going paperless is a simple practice to cut down on unnecessary waste. A quick win can boost morale and motivate your team to pursue larger environmentally friendly endeavors. 

U.S. offices use 12.1 trillion sheets of paper annually. The average office worker uses 10,000 sheets per year. Nowadays, you can switch most uses for paper in an office to online; it's waste that you can easily cut out. 

Trees are a vital part of our ecosystem. They store carbon dioxide through photosynthesis, helping reduce the gas emitted into our atmosphere. An excessive amount of CO2 causes the planet's temperature to rise, causing global warming. 

To mitigate the use of paper in your office, you can:

• Switch to an online calendar system
• Use a cloud storage system
• Remove printers
• Scan and email documents
• Digitally sign documents
• Email invoices and receipts
• Adopt digital business cards
• Use digital notes
• Invest in paperless marketing
• Provide reusable coffee cups

3. Partner with nonprofit organizations and charities

Companies interested in adopting sustainable practices often need to figure out where to start. The intent and desire are there, but an organization can lose steam without a clear plan. It needs to be efficient and balanced with action. 

Building an eco-friendly model from scratch can be both time-consuming and expensive. An option is to create a new team to handle sustainable initiatives with designated employees, but this can lead to stagnation without direction. This doesn't mean you should stray from this option; you just need to connect with the right people.

Partnering with a nonprofit organization or charity that aligns with your sustainability goals can aid in defining your own path. Several organizations have the resources and knowledge to assist you in the initial phases of your sustainable journey. They're not there to do the job for you or outline your mission but can offer a supporting hand in getting started. 

It's a two-way street. Donating or using your platform to promote your company can highlight how your brand fights climate change. By offering a percentage of your profits to fund their efforts, you'll be aligned with their mission, and consumers will know of your eco-friendly efforts.

of customers would choose brands that have environmentally sustainable practices

Source: Deloitte

Partnering with non-governmental organizations or nonprofits has a lasting impact on your brand and the planet. For example, Patagonia and Dr. Bronner's partnered with the Rodale Institute to form Regenerative Organic Alliance , which aims to fight climate change by reabsorbing carbon into the soil. 

Washing brand Ariel teamed up with WWF to reduceCO2 footprint. When Ariel hit 1 million pledges through their social media campaign #WashColdChallenge, they donated £100,000 to support WWF's climate work. Ariel benefitted from green marketing, while WWF received funding for their cause.

Who should you reach out to?

That depends on what your goals are. For SMEs, finding local initiatives that impact your community might be best. If you're looking on a much larger scale, partnering with organizations that reflect your mission and what your sustainable journey means to you is vital.

4. Educate your team on best practices

Give a person a fish, and you feed them for a day; teach a person to fish, and you feed them for a lifetime. Devising and implementing a sustainable strategy will only work if your team is appropriately educated and trained.

How could you expect your plan to be followed if you read from different sheets? By educating your staff, you're ensuring that they execute your sustainable business practices flawlessly. 

Set up and delegate initiatives to different team members. If they feel heavily involved and hold responsibility, they’re more likely to abide by your strategy daily. Have workshops and seminars on how to separate recycling properly or what to look for when buying sustainable supplies. 

You could also bring in a guest speaker to highlight how carbon footprint is measured and what you can do to lower it. That way, your team will be up-to-date on the latest procedures and how to implement and follow them. 

You can also set up green practice panels to give team members autonomy and construct their own sustainable ideals. Extend it company-wide through webinars. Team members can bring their practices home, and the spread of sustainability will far exceed your business walls. 

5. Become energy efficient

Providing energy to an office space can be costly, especially in the current climate. Thirty percent of energy is wasted in commercial, manufacturing, and educational buildings. Businesses can lower their expenses and emissions by reducing energy usage and becoming more efficient. It's a straightforward win for you and the planet.

By using alternative methods, SMEs can save 18 to 25% on energy bills. Designating a team to monitor heating, lighting, and equipment can ensure your space runs optimally. You could partner with an external organization to implement a more sustainable and optimized energy model in your workplace. 

Simple fixes could be changing all lights to LEDs, turning off heating in empty rooms, using daylight, and switching off unnecessary equipment. Alternatively, you could try out office sharing and reduce emissions by using co-working spaces.

Act now to fight climate change

Regardless of your business type, you have a role to play in fighting climate change. With a more significant push for Net Zero, you have a unique challenge to care for the planet for future generations.

Adopting more sustainable business practices are simple ways to make a lasting impact. By transforming your organization, you could see outside investment, better brand recognition, and even become a leader in your community for fighting climate change. Small steps can lead to tremendous results. 

There is no one size fits all approach, and the outlined practices are recommendations for what you could do. Get started, share ideas, include your team in the strategy and see what works for you. Through trial and error, you can customize and set goals in striving for a better planet. Companies are in it together and working toward fighting climate change. 

The future begins now; what you put in place now will benefit you now and in the future. Soon those small steps will become commonplace, and you’ll give the next generation something to build on. That first action can lead to a more sustainable future.

Sustainability and technology go hand in hand. Learn how generative designs are revolutionizing the design industry while making manufacturing and design more sustainable.

Lee Shields is a Content Associate at Setmore – a free online scheduling platform that helps you connect better with your customers.

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5 Practical Ways to Implement Sustainable Practices in Business

Daria Gavrilova, Instructor of Research, Communication, and Media, reviews the current landscape of sustainability in the business world.

While the idea “We need to go green!” might be clear enough, the question that is likely to interest entrepreneurs and managers is how to implement sustainable solutions in practice.

1. Think Long-Term

Sustainable business means focusing not only on short-term profits but paying equal attention to long-term thinking and planning. A decision that might save money now may lead to substantial loss both in profit and competitive advantage five years down the road, when, for example, a government introduces new restrictions that the production simply does not meet.

An example of such can be the Italian steel production plant, ILVA. A case study describes how ILVA relied on the slow and reluctant attitude of local courts and kept using outdated polluting technology, despite Italy being subject to EU regulations on emissions and pollution. As a result, in 2012 ILVA was ordered to immediately shut down, accused of “creating an unprecedented environmental disaster”.

2. Be Systematic

Companies that are successful in the implementation of sustainable practices and yield financial and ecological benefits, think of the business process as a whole . Regardless of whether you are launching a start-up or trying to bring an existing company up-to-date, successful sustainability decisions need to be integrated into the very model of your business, not treated as an optional “extra.”

3. Create Value From Waste

To help reduce waste, businesses can also design for recycling. That means thinking about how to recycle and reuse a product at the very stage of creating it in the first place.

4. Deliver Functionality Rather than Ownership

5. Talk and Learn

Reference List

Atasu, A., Dumas, C. and Van Wassenhove, L. N. (2021) The Circular Business Model. Pick a strategy that fits your resources and capabilities. Harvard Business Review. Accessed August 15, 2021 at https://hbr.org

Bocken, N. M. P., Short, S. W., Rana, P. & Evans, S. (2014). A literature and practice review to develop sustainable business model archetypes, Journal of Cleaner Production , 65(0), 42″“56. doi: 10.1016/j.jclepro.2013.11.039.

European Commission (2001). Business, environment and wine: from the winegrape to the bottle. Vertical integration of the environment in the wine production process and horizontal optimization of resources. Accessed August 20, 2021 at https://webgate.ec.europa.eu

Geissdoerfer, M. (2019) SUSTAINABLE BUSINESS MODEL INNOVATION. Sustainable Business Model.org. Accessed August 10, 2021 at https://sustainablebusinessmodel.org

Milton, F. (1970). A Friedman Doctrine: The Social Responsibility of Business is to Increase Its Profits. The New York Times Magazine . Accessed August 20, 2021 at https://www.nytimes.com

Tonelli, F., Short, S.W. and Taticchi, P. (2013). Case study of ILVA, Italy: The impact of failing to consider sustainability as a driver of business model evolution. Berlin: 11th Global Conference on Sustainable Manufacturing (CIRP). https://doi.org/10.13140/2.1.3725.4402

WWF (2012) Living Planet Report 2012. Accessed August 18, 2021 at http://awsassets.panda.org

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Top 10 Sustainability Plan Templates with Samples and Examples

Kavesh Malhotra

“We won't have a society if we destroy the environment,” these words from American cultural anthropologist, Margaret Mead resonate even today.

In today’s business environment, the concept of sustainability isn't just a buzzword but a fundamental strategy for success. As businesses evolve, the integration of sustainable practices becomes paramount and non-negotiable for success. A sustainability plan, integrated into your business strategy, enhances the quality of the final product, conserves resources, and transforms  sustainability goals  into reality.

However, it can be overwhelming to deal with the intricacies of sustainability planning. Hence, there is a dire need of developing  sustainability communication strategies , establishing an explicit action and  communication plan , and setting measurable goals. This is where SlideTeam's sustainability plan templates emerge as your solution. Dive into this blog to discover these presets’ transformative potential, revolutionizing how organizations perceive and execute  business sustainability .

Sustainbility is a key business input today. Explore a world of sustainability excellence with these action-oriented templates designed to elevate your environmental and social impact.

Elements of a robust sustainability plan include:

• Clear vision and goals
• Comprehensive financial strategy
• Engagement and partnerships
• Capacity building
• Performance monitoring and evaluation
• Scalability and adaptability
• Communication and advocacy

Sustainability isn't merely a corporate strategy; it's a philosophy that creates healthier working environments and ensures the responsible use of resources.

Prioritize the well-being of your team with these exclusive  workplace safety plans , ensuring a secure and compliant work environment.

Our curated collection of sustainability plan templates is a game-changer for professionals keen on integrating sustainability into their operations. From  communication plans  and  sustainability communication strategies  to  financial sustainability plans , these slides empower you to turn  sustainability goals  into tangible realities.

These content-ready, 100% editable slides offer a structure and a dynamic framework to implement, monitor, and enhance sustainability initiatives. Say goodbye to the hassle of initiating from scratch, adapt the efficiency these layouts bring, and witness the transformation of your project into a force for environmental and social good.

Let us start!

Template 1: Sustainability Communication Plan PowerPoint PPT Template Bundles

This bundle, crafted for effective and holistic sustainability communication strategies , ensures your message resonates with stakeholders, fostering a shared commitment to environmental responsibility. It starts with highlighting steps that establish a plan to support communication sustainability goals . The slides also depicts a department-wise business sustainability communication plan, sustainability communication strategies and benefits, and sustainability communication channels, among others . Download this bundle that ensures your sustainability message echoes across channels.

DOWNLOAD NOW

Template 2: Sustainability Action Plan PowerPoint PPT Template Bundles

Turn sustainability goals into actionable steps with this PPT Template, fostering a culture of responsibility. It includes steps to develop a small  business sustainability  plan to improve public relations and raise brand value. Use the slide to document aspects of a financial sustainability plan , including significant milestones for financial sustainability action plan, a matrix for implementing sustainability action plans in new businesses, and stakeholders’ responsibilities. The resource also offers a framework for a business sustainability financial governance action plan. Additionally, the yearly action plan included in the bundle helps large organizations implement and monitor sustainability initiatives. Download this bundle that drives tangible organizational change and helps transition towards a more sustainable future.

Template 3: Sustainability Plan Business Environment Management Development Planning Implementation

This presentation outlines a holistic plan for  business sustainability , encompassing environmental management, development strategies, and effective implementation. It starts with a four-step sustainability plan for small businesses and four elements of sustainability development plan. The deck types of sustainability development plans such as human, social, environmental, and economic. Topics such as planning implementation for environmental sustainability and strategies for business sustainability plan framework are also covered. Download this thorough plan, aligning your business with environmental conservation, management, and sustainable development.

Template 4: Sustainable Cosmetic Business Plan PowerPoint Presentation Slides

This presentation provides a detailed analysis of the cosmetic industry landscape, empowering businesses to align with sustainable practices. The plan triggers a company analysis, including financial statements, business mission and goals, product categories, etc. Users will also find detailed industry analysis, market research, market trends, customer analysis, and competitive analysis. The deck also incorporates Porter's framework to evaluate its impact on the industry and address market gaps, opportunities, and size. The go-to-market strategy, SWOT analysis, sales funnel, operational plan, and other strategic considerations have also been considered. The financial plan section offers a detailed five-year analysis based on market scenarios, including revenue generation model, break-even analysis, financial statements, and more. Download this deck and elevate your cosmetic business with a sustainable edge and project feasible plan , aligning beauty with responsibility.

Template 5: Sustainability Master Plan Sample Diagram Samples

Delve into a masterful strategy with this PPT Template, providing a holistic view of sustainability initiatives. The slide drives positive change across business aspects, such as society, innovation, environment, people, value circle, and good governance. Download this illustration that masters the intricacies of sustainability, ensuring every aspect aligns with your sustainability goals .

Template 6: One-Page Business Strategies and Sustainability Plans of Company Report Infographic

This concise one-pager depicts a snapshot of major business growth strategies and values created for key stakeholders, encapsulating your company's commitment to sustainability, presented with clarity. It also highlights sustainability plans that are ideal for succinct communication and planning. Download this powerful one-pager and take your business sustainability communication game to the next level.

Template 7: Building a Successful Sustainability Plan for Business

Identify keys to success in business sustainability planning with this slide that balances business growth with ethical practices. It demonstrates the key factors and their amalgamations prominent in the sustainability action plan- people, process, sustainability, and environmental. Download this slide that guides businesses in constructing a robust sustainability plan that aligns with organizational sustainability goals.

Template 8: Development of Sustainability Plan for Project

Useful for project managers, this PPT Layout facilitates the development of a project sustainability action plan , ensuring that projects align with environmental and social responsibility. It explains the steps that guide project sustainability strategy. These crucial stages are establishing a vision, appointing a project manager, defining the budget, and encouraging the project management team with training. Also included are other vital stages like developing a roadmap like design selection and establishing a common vision, building an effective relationship with the project delivery team, and forming a project schedule. Download this project feasible plan that ensures sustainability is woven into every project phase.

Template 9 Types of Sustainability Development Plan

Explore approaches to sustainability with this slide, catering to unique needs of business models. The layout provides insights into sustainability development plans, which are human, social, environmental, and sustainability. Using these approaches, businesses can gain valuable understanding of how they can incorporate sustainable practices into operations and contribute to sustainable future.

Template 10 Sustainability Action Plan Stakeholders’ Functions PPT

This PPT Template delves deep into the departments that play a key role in ensuring that the goals are achieved. The slide lists the leader of the individuals from each segment who leads that team, plus also details the function performed. The key stakeholders as listed on the sample are finance, operations, procurement, risk and compliance, and committees or sub-committees. These stakeholders ensure you get the most balanced recommendations, be it budget, regulations et al.

Download now!

SUSTAINIBILITY IS A STRATEGIC IMPERATIVE

The journey toward sustainability is no longer a choice, but a necessity. It is a strategic imperative for businesses. Recent industry surveys underscore a universal truth: Businesses adopt sustainability plans to enhance their products, foster productivity, and contribute to a healthier planet. As this consciousness rises, these slides offer a compass for organizations to navigate the complex terrain of sustainable business practices. Download these enablers of positive change and witness how sustainability becomes more than a goal — a way of business, a commitment to a better future.

Additionally, build a solid foundation for your construction business using these powerful templates designed to articulate your goals and strategies with clarity and impact.

Download our sustainability plan templates and embark on a journey toward responsible growth and enduring success.

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How to Develop a Small Business Sustainability Plan

If you’re a small business owner, you may be wondering what you’ll gain by adopting a small business sustainability plan. In a word, plenty! Regardless of your industry, adopting sustainable business practices can improve your bottom line—in both the traditional and the environmental sense.

Your cost savings, reduced risk, positive brand association, improvements to the environment and public health, and ability to meet demands for eco-conscientious products and services will more than offset the costs of up-front integration of sustainability initiatives. In other words, your small business sustainability plan’s initial costs are a wise investment!

What Is a Business Sustainability Plan?

A business sustainability plan is simply something an organization develops to achieve goals that create financial, societal and environmental sustainability. A business impacts communities and resources, so taking these steps to sustainability is in the best interests of the environment, the business owner and the consumer.

Reasons to Build a Sustainable Business

Making the case for a sustainable business is simple: an environmentally friendly business can be a profitable one. You can decrease your business’s negative impact on the environment and potentially save money. Just take it from the many  companies around the world that generate at least $1 billion a year in revenue from sustainable products or services. These companies manufacture everything from burritos to sports cars. Collectively, these businesses generate more than $100 billion in annual revenue from their green product lines alone, and they can outperform competitors by nearly 12 percent annually.

Small businesses can easily scale these practices and implement them in their own organizations through a small business sustainability plan. From saving money and promoting public health to improving public relations, the benefits of building a sustainable business might surprise you.

Benefits of a Small Business Sustainability Plan

• Reduce energy use. From installing ENERGY STAR products and appliances to using LED light bulbs and automatic taps, if you reduce waste, you will increase your business’s efficiency, potentially save money on energy and contribute to overall small business sustainability. You can even start small: encourage employees in energy-saving practices such as turning off lights, carpooling, or telecommuting whenever possible.
• Improve public health.  Be committed to going beyond mere compliance with baseline government standards. A sustainable business will implement changes that reduce emissions, improve air quality, and identify products that reduce concerns about health and safety liability. This promotes higher standards of public health and environmental protection.
• Be a trailblazer.  Not too long ago, no one thought a sustainable business could also be a profitable one, so many industries still lack sustainable companies. Become an inspiring voice of advocacy beyond the four walls of your organization, and blaze trails by creating value for employees, consumers and the public. The visionary thinking and passion behind your business sustainability plan will be remembered—and will yield dividends—for years to come.
• Attract green-conscious consumers—and publicity. Improve public relations with your sustainable business by becoming attractive to Earth-conscious consumers and raising your brand’s value. And remember to let the public know when you implement your environmentally friendly policies. Learn more about the  benefits of running an environmentally friendly business here !

5 Steps to Sustainability for a Small Business

If you’re ready to develop your small business sustainability plan, we’re here to help! With these five steps to sustainability based on going above and beyond mere regulatory compliance , you’ll be equipped to make your business more up to date and efficient. The result will be rewards for both the environment and your bottom line.

Step 1: Learn about Sustainability

The first step in creating a small business sustainability plan is learning what, exactly, sustainability is all about.

• Knowledge is power. Use your resources wisely! There are many guides out there that offer suggestions on sustainability as well as renewable and sustainable energy. Use them as a jumping-off point.
• Profits, people and planet. Internalize the idea that sustainability within your business means managing your triple bottom line: your financial, social and environmental impacts, obligations and opportunities.
• Going green vs. going sustainable. You may be wondering, what is a green business? Green products and services directly reduce the environmental impact when compared to other products and services— sustainability is a broader concept. It’s about the long-term, multifaceted impacts and implications of your products and services. But you can use green language in your small business sustainability plan and campaign using green goals to measure your total sustainability success.
• Out with the old (way of thinking). Forget the outdated “take-make-waste” worldview, and adopt the “borrow-use-return” model. It’s all about a perspective shift. The key is to see the business, the self, the economy and the household as connected with—instead of separate from—the environment.

Step 2: Assess Areas of Improvement

If the federal government and major corporations can find ways to improve sustainability, so can your small business! It just takes some research.

• Learn the laws. From local development laws to self-regulation in your industry to international treaties, many standards are already on the books in terms of sustainable practices. The Environmental Protection Agency ’s website is a great place to start in your research.
• Check your compliance. At a minimum, your business should be in total compliance with any laws or standards already in place. Research cost-effective ways to improve compliance, such as through pollution-prevention techniques and innovation.
• Assess global issues. Research issues such as global warming, energy and fuel crises, and ecosystem decline to see whether your practices are a contributing factor. This will guide what small business sustainability goals you set in terms of improvement.

Step 3: Find Opportunities

Start embracing the entrepreneurial spirit of innovation and asking yourself the hard questions: check out these opportunities for creating the best small business sustainability plan possible.

• Innovate. Success in implementing sustainable business practices is directly related to innovation. If you want to meaningfully reduce waste and energy consumption, you’ll need to innovate, whether you’re a start-up or a thriving business. From problem solving to finding cheaper and better ways of doing things, innovation ranges from simple changes to implementation of complex new technologies.
• Get employee input. Bring in employee ideas and support; employees will take responsibility for things like energy efficiency and come up with solutions that will help you implement and improve sustainability.
• Self-reflect. Ask yourself a few questions, and you’ll find numerous opportunities for improvement: What strengths does my business bring to the table that can play a unique role in sustainability? Does my company create an overabundance of waste? Do the companies I work with create mass amounts of waste?

Step 4: Create a Vision

Your vision for sustainability is all about what makes you and your business tick.

• Find your company’s passion. What is your company passionate about? Choose from a few environmental issues (e.g., global warming, air pollution, waste disposal, water pollution, urban sprawl), and focus on where you can have a meaningful impact.
• Be specific about your small business’s vision. Create a separate vision for each section of your small business, from those on the front lines to those working behind the scenes in different departments.
• Define your sustainability model’s terms. Be sure to define a few words that describe your business’s specific sustainability model. This will help you give your employees the ability to take ownership of your overall vision.

Step 5: Implement Changes

The final of the five steps to sustainability is an exciting one. Implementation!

• Communicate clearly. Adequately communicate your new sustainability plan across your entire company. Educate your employees to ensure successful implementation, and make sure all leaders are involved.
• Change policies. Ensure your current policies align with your sustainability plan. If not, create new ones that are specific to different departments and employees.
• Review performance. Create specific, measurable and attainable written goals, and develop metrics on how to track the success of your changes. This could be as simple as comparing a previous energy bill under the old policies with a new one that comes after you’ve implemented changes.
• Get feedback . Have your leaders in the company report back to you on any difficulties they encounter in implementing changes to policies, so that you can troubleshoot how to fix them while still staying true to the sustainability model. This will help you identify opportunities for more small business sustainability.

After you’ve taken the five steps to sustainability, make sure you can substantiate your sustainability claims before going public with the environmental advantages of your products or services. You can avoid making unqualified claims by following the Federal Trade Commission’s guidelines and general principles that apply to environmental marketing. You’ll learn how consumers will interpret your claims and how to support and qualify your claims without being misleading. Then you’ll be ready to let people know about your small business sustainability plan. The financial, societal, environmental and public relations rewards are sure to follow!

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Sustainable business for SMEs

• September 28, 2022

Sustainability is a topic on the minds of many small business owners, and it’s understandable why. Not only does adopting sustainable practices and transitioning to a sustainable business help to prevent climate catastrophe, but it can also improve your bottom line.  

Customers today want to engage with small sustainable businesses that prioritise caring for the planet and its people. According to Forbes , 92% of consumers are more loyal to companies that support environmental and social issues.  

In addition, the Harvard Business Review has reported that implementing corporate responsibility practices can see businesses increase their revenue by 20% or more. Continue reading to learn more about how you can build a thriving, sustainable small business through developing a sustainability plan . 

Sustainability Plan Definition

If you are considering building a sustainable business, chances are you’ve heard the term sustainable business plan once or twice. This term is relatively common, but not all business owners entirely understand what a sustainable business plan entails. Essentially, it is a strategy or a plan created by a business to achieve its goals. A sustainable business plan for SMEs acts as a framework for strategic sustainable development. 

The purpose behind a sustainable business plan is to generate value for all involved whilst being mindful not to drain the resources that help create this value. Business plans prioritising the planet as well as profit consider all stakeholders and assess and address environmental and social impacts. Moreover, they are entirely transparent about their operations to their customers. 

A sustainability plan will hone in on creating financial, societal and environmental sustainability. Businesses have a considerable impact on the environment and society in terms of resources. However, they can be used as a force for good. Not only that, but taking steps to become more ecologically sound is in the best interests of the planet, the business owner and the customer. 

Why you should build a sustainable business

Focusing on the sustainability while growing a small business may seem counterintuitive. However, building a sustainable business will help you establish stronger relationships with your customers and community. Moreover, it is sure to impact your bottom line positively. 

This is because customers care about brands with purpose; they want to align their purchases with their personal values. One study by NielsenIQ found that customers will spend more on products from businesses prioritising the environment. Not only that but becoming sustainable means looking at all stages of your processes to reduce resource use and waste and improve efficiency, lowering operational cost. 

Utilising sustainability tactics in your business strategy will also help you recruit and keep top talent . Employees are similar to consumers in that they value brands with purpose who care about more than just revenue. 

Therefore, when you share the steps you are taking to become more environmentally friendly, you will attract people who want to work with ethical companies. They are likely to stay around, too, as they will be happier in their jobs and feel like they are part of a movement. These are just some of the benefits of creating a responsible business. 

Challenges in implementing a sustainable business plan for SMEs

Many business leaders want to develop sustainable business plans so they can play a role in helping the planet. In addition, they understand the advantages of doing so and that this is the future of business. However, like anything, some challenges prevent business owners from going green. 

We live in a world where everything comes down to revenue and your bottom line. Therefore, it’s not surprising money is one of the factors that cause hesitation among small business owners considering going green. 

However, despite popular belief, becoming sustainable can save you money. Building an environmentally-friendly business is about becoming more efficient, reducing resource use, and lessening waste. All of these actions reduce cost, saving your organisation money. 

While you may think of going sustainable as engaging in large projects like solar energy and upgrading your building, you can start smaller by reducing your plastic waste, composting, recycling, and utilising more efficient appliances. 

Time is considered another significant barrier to businesses becoming more sustainable. They worry they do not have the time to plan, implement and execute the practices needed. 

Of course, building a sustainable business requires some legwork in the form of research and planning. Moreover, small business leaders are generally very busy and pressed for time. 

However, do not forget that you have an entire team who are there to help your business on this journey, it’s about integrating sustainability into each employee’s role. Most likely, they will be delighted to help and even get excited to see your SME prioritising environmental and social impact. 

Not knowing where to start

Another big challenge that is not spoken about enough is that many business owners do not know where to start regarding sustainability. This is precisely why many big corporations bring in sustainability managers and executives. It’s not only small business owners that are daunted by the task of going green. 

However, you do not require these managers or executives. Instead, the support of your team and some research will help immensely. What is required of you here is to look at your operations and measure your current impact. Once you have done this, you can begin implementing initiatives to reduce your impact. 

A lack of education 

This falls in line with the hurdle that is not knowing where to start; many leaders procrastinate becoming sustainable as they fear they do not have adequate knowledge. While this may seem like a dealbreaker, you do not need to be an expert. Instead, research from you and your team will help you get on your way to using your business as a force for good. 

Sustainability Plan Implementation Challenges

It’s just as important to be aware of the challenges of developing a sustainability plan as it is to take note of the advantages. Below are some sustainability best practices that will help you overcome challenges when implementing sustainability.

Your sustainability practices and business mission should go hand in hand

Building a small business or growing an SME is challenging, never mind trying to add sustainability into the mix. However, it doesn’t have to be. Many people go wrong when implementing sustainability in their business because they treat it as a separate goal. 

However, integrating sustainability with your business mission and making responsible business a part of your DNA will make it easier to implement your plan. In addition, you’ll come across as more authentic and effective and be able to reign in on the benefits of building a sustainable business. 

Remember, it’s better if every single business is imperfectly sustainable than not trying at all

Too often, when we do something, we put too much pressure on ourselves to be perfect. This is no different in business, especially when it comes to sustainability. However, it is essential to remind yourself that perfection is impossible and that it is far better to try and not hit all the right marks than not to make any effort at all. 

The businesses that incorporate sustainability into every part of their business are undeniably impressive. In saying that, this results from years of hard work and commitment; you’ll get there too. Nothing happens overnight, and sometimes limitations do exist. 

Consider your customers’ needs and create a process that is easy to follow

When building a sustainable business, learning your top priority should be understanding your customers’ needs. Do some research to see what matters to them, the issues they are navigating and the types of support they require. 

Then, you can adapt your services and products to suit them. What follows from doing this is creating robust, well-defined processes. They should be tried and true and help your team comprehend how to approach day-to-day activities efficiently. 

Embrace digital because it’s where the sustainability advocates live

Part of building a sustainable business is reaching the dedicated followers behind the movement. You need to embrace digital because this is where sustainability advocates spend their time. 

They promote social media posts about all things sustainability and blogs on digital platforms. Therefore, you should take advantage of these communities to build your own community and reach a broad and engaged audience. 

Always be authentic and transparent with your customers

Being authentic and transparent are two key pillars when building a sustainable business. You should always strive to be authentically you when dealing with customers, stakeholders, shareholders, and your team. 

What’s more, you need to be 100% transparent about where your business is in its sustainability journey. This trust and integrity will sustain your business and unlock further growth.

Look after your people and make them feel valued

Sustainability is not just about the environment but also about fostering a good working environment and strong workplace culture. With this in mind, your sustainability plan must prioritise your people to feel valued and essential to the business. 

Giving them a clear purpose for their work and ensuring their well-being has a low cost and many benefits. A strong workforce equates to a robust and thriving business, even if faced with challenges. 

Sustainability is the way of the future in business; however, becoming a responsible business does not happen overnight. You need to develop a sustainability plan that will help you perfectly balance profit with purpose. 

Like anything, its implementation will have challenges, but the advantages will outweigh them. The main takeaways are to communicate the plan clearly across the company, embed sustainability in your mission, and accept feedback on how to improve. 

Looking to learn more?

If you are an SME owner, sustainability leader, or simply interested in business sustainability, find out what it takes to build a responsible business. The Institute of Sustainability Studies offers the Diploma in Business Sustainability which will provide you with all the knowledge and skills you need to craft a future-proof sustainability strategy for your organisation and implement it.

About The Author

Bronagh Loughlin

Dedicated to harnessing the power of storytelling to raise awareness, demystify, and drive behavioural change, Bronagh works as the Communications & Content Lead at the Institute of Sustainability Studies. Alongside her work with ISS, Bronagh contributes articles to several news media publications on sustainability and mental health.

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There’s no such thing as a perfect supply chain. The key question is: What are you doing to continuously make yours more sustainable?

A sustainable supply chain needs to embed environmental, social and governance (ESG) best practices into how raw materials are sourced, turned into products and delivered to market. It should address a wide range of issues, including environmental and social challenges like water security and deforestation, as well as human rights and fair labor working conditions. Adding to the complexity, companies need to ensure their suppliers and vendors—and their networks—are upholding similar commitments.

It can be challenging, and companies should avoid cutting corners when it comes to addressing sustainability goals. A lot of companies have greenwashed their ways into ESG reports, but if you look under the covers, those efforts don’t really mean anything. Go for transparency and trust, especially because there’s technology that enables you to provide that.

Supply chain management challenges

Leaders should focus on three common supply chain challenges, with high-level solutions that can kickstart organizations toward achieving their sustainability goals and improving their ESG scorecards:

Challenge 1: Companies struggle with visibility into whether their supply chains are sustainable. By their very nature, global supply chains involve complex and multinational production and transportation networks. Primary suppliers may subcontract portions of large orders to other firms. And since companies often do not deal directly with all the providers in their supply chains, end-to-end traceability is hard to achieve. Each participant in the system tracks only their small segment of the journey and uses disconnected systems to log data.

When information about the product is fragmented, it’s difficult to answer questions such as, Were all the parts sourced and built in service of the circular economy ? Was the labor fair at every step? Getting reliable data from that pipeline feels like a huge and cumbersome task.

Solution: Technology and partnerships can provide a clearer view. Only one in three organizations are working to drive transparency in the environmental impact of goods and services throughout the supply chain, according to a 2022 study from the IBM Institute for Business Value (IBV), Sustainability as a transformation catalyst. The most pioneering executives work with partners to execute their environmental sustainability strategies. Technology is key to bridging gaps and creating new opportunities for partners to collaborate.

Consider how blockchain technology can drive greater transparency and efficiency in a supply chain, simplifying the exchange and tracking of information and enabling greater trust. It creates a permanent digitized train of transactions that can’t be altered, and each network participant has a copy of the data.

A mobile application from Farmer Connect , for instance, uses IBM Blockchain to trace coffee from bean to barista. The final customer can even scan a QR code on a bag or cup to see the journey of the beans they’re about to enjoy.

Iberdrola, an international renewable energy leader, took another approach and implemented a third-party tool to score suppliers on their sustainability practices. For suppliers that don’t satisfy Iberdrola’s sustainability criteria, the scoring tool helps determine actions they can take to improve.

Challenge 2: Corporate leaders struggle to gauge the ROI of supply chain sustainability initiatives.

About 57% of CEOs say one of the biggest challenges to sustainability efforts is how difficult it is to define and measure the ROI and economic benefits, according to the IBV study. A company’s plans to set social and environmental targets for suppliers, for example, might hit a roadblock if executives don’t know how to measure the benefits. CEOs may have great ambition and great intentions, but they have trouble justifying some of the things that come out of their ambitions.

Solution: Think holistically when it comes to KPIs, as sustainability performance benefits turn up in unexpected places.

Companies are seeing that they can differentiate themselves in the market and appeal to a generation of consumers that is much more interested in sustainability and impact than prior generations. IBM worked with a consumer packaged goods (CPG) brand in Europe to put a QR code on the packaging. People could scan the code to learn about the journey of the products, which translated to an 8% lift in sales.

A sustainable supply chain can also help companies attract the best talent. In a 2021 global survey by IBV, Sustainability at a turning point , 71% of employees and job seekers said environmental and socially responsible organizations are more attractive employers, and nearly half of respondents would accept a lower salary to work at those companies.

Challenge 3: Some leaders do only the minimum that’s required to fulfill today’s regulations, and they fail to think ahead.

There are still companies that have just not bought into the idea. About 29% of CEOs are merely complying with regulations, according to the Own your impact study. And 15% haven’t yet made any sustainability investments at all.

Solution: To increase buy-in, reframe the conversation around practical business reasons, like increased consumer trust and regulatory compliance.

Values-based purchasing is growing. Consumers have more options to choose from and want to support brands whose business practices support their beliefs. Those not implementing sustainability programs or initiatives now are in danger of lagging behind competitors, a gap that will be hard to close over time.

Regulations, such as those around carbon emissions, are increasing too, and regulators are becoming bolder in what they’re requiring companies to do. Germany’s Supply Chain Due Diligence Act , for instance, states that companies with 3,000 or more employees must take appropriate measures to respect human rights and the environment with their supply chains. Audits will happen as the law goes into effect in 2023, and violations result in costly fines and disruptions.

Supply chain sustainability is a way of future-proofing your business. If you’re committed to being responsible, show the world that you are. Technology today, such as blockchain and AI, enables you to get transparency into your supply chain.

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Healthy seas, thriving fisheries: transitioning to an environmentally sustainable sector

Briefing Published 28 Aug 2024

Europe’s seas face increasing pressure from human activities. This briefing, the first in a series, addresses the need to transition to sustainable fisheries. It argues for an ecosystem-based approach to sustainably exploiting marine resources and moving away from adverse practices.

Key messages

Fisheries rely on healthy and productive marine ecosystems, but Europe’s seas are generally in poor condition due to increasing pressures from human activities, including climate change.

Overfishing, bycatch and habitat degradation are the primary drivers of declining marine biodiversity. Around 40% of fish and shellfish populations in Europe’s seas are still not in good status or fished sustainably.

Marine protected areas currently cover 12.1% of the EU’s sea area but provide little or no relief. Only 2% have management plans in place and less than 1% offer strict protection, including from fishing.

A range of clear, proven, beneficial measures are available for the EU and its Member States to address the ongoing biodiversity, pollution and climate crises. Such measures include ensuring all harvested stocks are exploited at sustainable levels, promoting low-impact activities, and establishing a large-scale, well-designed and effectively-managed network of marine protected areas.

Additionally, phasing out adverse practices, such as overfishing, bycatch and the use of fishing gear that detrimentally affects marine ecosystems, is crucial for further fostering a sustainable future for fisheries.

Fisheries need healthy, productive and resilient marine ecosystems

Marine fisheries rely on the ocean’s renewable living resources that in turn depend on healthy, clean, non-toxic, productive and resilient seas. Yet, human activities at sea and on land heavily impact marine ecosystems, threatening marine biodiversity and species’ regeneration ( EEA, 2019 ; EEA, 2021 ). More than 93% of Europe’s marine areas are already under pressure from human activities ( EEA, 2020 a). This situation could quickly intensify with an expanding blue economy (Box 1) if it is not developed sustainably.

Meanwhile, the fisheries sector is increasingly competing for space and resources with other economic activities, such as offshore wind farms. And despite increased support , EU fisheries production is declining, having fallen by 18% between 2014 and 2021 . The sector, including aquaculture, is unable to meet the demand of the average EU consumer, who consumes around 24kg of seafood per year. Consequently, the EU’s self-sufficiency in seafood production currently stands at only 38% ( EUMOFA, 2023 ).

Driven largely by the growing demand for seafood products, persistent overfishing and unwanted bycatch lead to changes in fish communities and marine food webs. Overfishing, habitat degradation and bycatch, including that of sensitive species, are coupled with the effects of other pressures from human activities, such as eutrophication , pollution and climate change . The combined effects of these pressures may reduce the resilience of fish populations to adapt to environmental changes, potentially leading to stock depletion and even fisheries collapse. For example, this situation is currently the case for western herring stocks and eastern cod stocks in the Baltic Sea ( ICES, 2023 ).

Addressing these challenges and transitioning to sustainable fisheries requires the full implementation and enforcement of existing management tools, especially those targeted at reducing the negative impacts of these pressures on marine resources. This is vital for improving the social, economic and environmental dimensions of fisheries.

Box 1. The EU’s blue economy

In May 2021, the European Commission adopted the communication on ‘A new approach for a Sustainable Blue Economy in the EU’ (EC, 2021). The approach integrates ‘blue growth’ into the European Green Deal and calls on all blue economy sectors to reduce their environmental and climate impact. The strategy underscores that tackling the climate and biodiversity crises requires healthy seas and a sustainable use of their resources to create alternatives to fossil fuels and traditional food production.

The term Blue Economy encompasses all sectoral and cross-sectoral economic activities based on or related to the oceans, seas and coasts, and includes:

• Blue biotechnology
• Desalination
• Infrastructure and robotics
• Marine living resources
• Marine non-living resources
• Marine renewable energy
• Maritime defense
• Marine and coastal tourism
• Marine shipping and transport
• Port activities
• Research and innovation
• Shipbuilding and repair

The ocean also has economic value that is not easy to quantify in terms of habitats for marine life, carbon sequestration, coastal protection, waste recycling and storing, and processes that influence climate and biodiversity.

Source : EU Blue Economy Sectors - European Commission (europa.eu)

Fisheries impact on marine resources

The common fisheries policy (CFP) aims to restore and maintain fish stocks at levels that can produce a maximum sustainable yield ( MSY ). But despite success in some EU waters in reducing overfishing of some stocks, harmful practices and unsustainable fishing levels persist. These issues contribute to the EU’s lack of success in meeting the CFP’s objective of exploiting all stocks at MSY.

In 2022, around 60% of the assessed stocks in Europe’s seas were found to be in good status or fished sustainably, although with significant regional differences, according to the EEA indicator on the status of fish and shellfish stocks . These findings largely align with recent assessments by the Regional Sea Conventions (RSCs), namely:

• The target set by the Convention for the Protection of the Marine Environment of the North-East Atlantic (OSPAR) of achieving 80% of stocks in good status was not met in the North-East Atlantic ( OSPAR, 2023 ).
• In the Baltic Sea, only 27% (4 out of 15) of commercial stocks were found to have good status on average ( HELCOM, 2023 ).
• In the Mediterranean and Black Sea, stocks contributing to only 50% of the landings are assessed. Of these, more than half are fished outside biologically sustainable limits and fishing pressure remains twice what is considered sustainable ( FAO, 2023 ).

Excessive levels of fishing can lead to stocks being overfished in the long run. This results in significant environmental impact ( Parker et al., 2018 ; Kristofersson et al., 2021 ) and economic losses, as more fishing effort (and associated costs) are needed to find and catch reduced fish populations ( Grafton et al., 2007 ; Kelleher et al., 2009 ; World Bank, 2017 ).

But even at MSY levels, fisheries will impact the ecosystem and its food webs, contributing to biodiversity loss. Such impacts include:

• Bycatch : The unintentional catch of juvenile and non-targeted species, including protected, endangered and/or threatened species (PETs) such as marine mammals, elasmobranchs (e.g. sharks and rays), turtles and seabirds, leads to declines in those populations. Often these species have unfavourable/bad conservation status, and the limited bycatch data available are generally of poor quality and inadequate for fully assessing the impacts ( ICES, 2020 ; ICES, 2024 ). Globally, fisheries interact with at least 20 million individual PETs annually ( FAO, 2019 ). While exact figures are unknown for Europe’s seas, estimates report over 38,000 individual PETs as bycatch from just 3.3% of the total fishing effort monitored in 2022 ( ICES, 2024 ), implying that the number of PETs affected is substantially higher.
• Discards : Throwing unwanted catch back into the sea, often dead or with a low chance of survival, amounts to an estimated 9 million tonnes annually, or roughly 10% of the global catch ( FAO, 2019 ). If this is also the case for EU fisheries, then around 360,000 tonnes of seafood are discarded annually. To address this wasteful practice and encourage the use of more selective fishing gear, the EU introduced a landing obligation (LO) in 2015. Yet after its full implementation in 2019, there is still a general lack of compliance, and illegal and unreported discarding remains widespread ( EC, 2021 b ; ECA, 2022 ).
• Habitat degradation : Certain fishing methods, such as bottom trawling and dredging, can severely disrupt seabed ecosystems, destroying biogenic reefs and other habitats vital for diverse and flourishing marine life. In Europe, around 43% of shelf/slope areas and 79% of coastal seabeds are disturbed, primarily by bottom trawling ( EC, 2020a ).
• Ghost fishing : Abandoned, lost or otherwise disposed of fishing gear (ALDFGs) pose a long-term threat to marine animals and contribute significantly to marine (plastic) litter ( EEA, 2023a ). Each year, 2,000 to 12,000 tonnes of ALDFGs enter Europe’s seas, killing marine life through entanglement or ingestion. Eventually, these materials degrade into microplastic fibres, are absorbed by zooplankton and re-enter the food web ( Stolte et al., 2022 ), with potentially severe implications for seafood security, safety and public health.
• Pollution : Vessels and fishing activity contribute to marine pollution through accidental oil and fuel spills, underwater noise, chemical and wastewater runoff, water column and seafloor litter. They also contribute to air pollution through greenhouse gas (GHG) emissions. The EU fishing fleet contributes to climate change with around 4.8 million tonnes of carbon dioxide emissions annually ( Scientific, Technical and Economic Committee for Fisheries, 2023 ; EC, 2024 ).
• Loss of seafloor integrity : Fishing activities, in particular when using mobile bottom contacting gear, not only cause the loss of vital habitats for benthic communities but can also lead to the release into the water column of carbon trapped in marine sediments ( blue carbon stocks ), affecting ocean acidification. This carbon is then returned back into the atmosphere, further contributing to climate change and rising seawater temperatures, which consequently affects fish distribution and other ecosystem dynamics ( EEA, 2023b ; EEA, 2024 ).

Sustainability gap in Europe’s seas

The EU is committed to implementing an ecosystem-based approach to manage human activities (Box 2) in the Marine Strategy Framework Directive (MSFD) ( EU, 2008 ) and the CFP ( EU, 2013 ). The former aims to achieve good environmental status (GES) in Europe’s seas by 2020, while the latter contributes to the same objective. Yet these objectives remain to be met as:

• marine biodiversity remains under threat and is declining ;
• fishing has not reached sustainable levels for all stocks in all EU waters;
• aquaculture has not achieved its potential as a sustainable source of protein to alleviate pressures on wild fish stocks and contribute to ensuring food security ( ECA, 2023 ).

Box 2. Ecosystem-based approach to management

The ecosystem-based approach to the management of human activities is central to the MSFD and ensures that ‘the collective pressure of such activities is kept within levels compatible with the achievement of good environmental status and that the capacity of marine ecosystems to respond to human-induced changes is not compromised, while enabling the sustainable use of marine goods and services by present and future generations ’ ( EC, 2020a ).

As an integrated approach to management, ecosystem-based management (EBM) considers the entire ecosystem, including humans as part of it. The goal is to maintain ecosystems in a healthy, clean, non‑toxic, productive and resilient condition, so that they can continue to provide humans with the services and benefits upon which we depend without being compromised.

It is a spatial approach that builds around: (1) acknowledging connections, (2) combined effects, and (3) multiple objectives — rather than a traditional approach that addresses single concerns, e.g. species, habitats, sectors, activities and individual national interests.

Source : EEA, 2020, adapted from McLeod and Leslie, 2009 and EEA, 2015 .

While the MSFD seeks to keep the collective pressure on the marine environment at levels to ensure GES, it does not regulate any of the sectors exerting these pressures. It is up to EU Member States to find ways to comply with environmental legislation and sustainably manage pressures so that conservation objectives can be reached, while also preserving economic activities and benefits to coastal communities and society. Thus, achieving GES under the MSFD relies largely on key EU sectoral policies, such as the CFP for fisheries, to deliver on their objectives.

In this context, the EU Maritime Spatial Planning Directive (MSPD) ( EU, 2014 ) requires Member States to develop their blue economy sectors while ensuring GES and so offers a robust framework for operationalising the ecosystem-based approach. However, confronted by the challenges of balancing blue growth and GES, the ecosystem-based approach to managing human activities remains largely overlooked in most national marine spatial plans ( Jones et al., 2016 ; Greenhill, 2020 ; Haapasaari and van Tatenhove, 2022 ).

The success of the MSFD also depends on the effectiveness of other implementing laws. These include the Water Framework Directive (WFD) ( EU, 2000 ), which covers transitional and coastal waters, the Birds Directive ( EU, 2009 ) and the Habitats Directive ( EU, 1992 ). Together, they aim to protect some of the most valuable and sensitive marine habitats and species, including through the EU-wide Natura 2000 network of protected areas. EU Member States are required to implement measures to deliver on the objectives of this legislation.

The CFP also contributes to these environmental objectives. However, the exclusive competence of the EU on the conservation of marine biological resources means that Member States may not unilaterally implement conservation measures, such as fisheries restrictions in MPAs, at least not beyond the limits of their territorial waters (see Box 3).

As a result, the uptake of marine environmental goals in EU fisheries management is challenging and remains limited ( Wakefield, 2018 ; O’Hagan, 2020 ; Puharinen, 2023 ). This is evident in Natura 2000 sites, which currently cover around 9% of the EU’s sea area. While they constitute the majority of the EU’s MPAs, most of these sites are located in territorial waters and many still lack management plans ( EEA, 2020b ).

Box 3. Marine protected areas and fisheries under the CFPs

As underscored by the European Green Deal ( EC, 2019 ), establishing a well-designed and effectively managed network of MPAs is key to rebuilding and restoring marine ecosystems and biodiversity, guaranteeing their long-term benefits. These benefits may include, for example: (1) the spillover of biomass from areas closed to fishing to those that remain open and (2) better carbon storage capacity of seabed habitats. Thus, MPAs have the potential to increase fishing opportunities while also enhancing resilience and adaptation capacity to climate change (e.g. ICES, 2021 ).

Currently, MPAs cover 12.1% of the EU’s sea area, of which less than 2% have management plans in place. Less than 1% are strictly protected ( EEA, 2020 ; ECA, 2020 ; EC, 2020 b ). The situation is even more dire in the Mediterranean Sea, where less than 0.06% have full protection ( Claudet et al., 2020 ). Furthermore, the few fully protected areas or ‘no-take zones’ are mostly located in EU Member States’ territorial waters that extend up to 12 nautical miles (nm) from the shore or, in the case of the EU’s outermost regions, up to 100nm.

In these areas, Member States may apply fisheries conservation measures to their fishing fleets and all other EU vessels, although some exceptions may apply. However, if a Member State wants to implement fisheries restrictive measures in areas beyond its territorial waters and up to the outward limit of the exclusive economic zone (EEZ), these must first be proposed through joint recommendation under the regionalisation process of the CFP (see articles 11 and 18 ). For this, all other Member States with a direct fishing management interest must agree to the measures and give up access to fishing rights in the areas concerned (Figure 1).

This procedure under the CFP aimed to support Member States in achieving their environmental obligations, such as those under the birds and the habitats directives and MSFD (GES, as required under Article 2 of the CFP), is generally considered inadequate to provide effective and timely protection (e.g. ECA, 2020 ; Kingma and Walker, 2021 ).

This is demonstrated by the fact that damaging fishing practices, such as bottom trawling, have been documented in 59% of EU Atlantic and Baltic Sea MPAs ( Dureuil et al., 2018 ) and in 90% of offshore marine Natura 2000 sites ( Marine Conservation Society, 2024 ). Moreover, trawling intensity is often higher within these MPAs than in non-protected areas ( Perry et al., 2022 ). In the Mediterranean Sea, regulations are considered to be insufficiently stringent to confer any ecological benefit in over 95% of the areas designated for protected ion ( Claudet et al., 2020 ).

Without significantly reducing or eliminating fishing pressure in MPAs, current management undermines the potential of MPAs to reverse the ongoing declines of marine biodiversity and habitats ( ECA, 2020 ).

Figure 1. Restricting access to fishing in MPAs in EU waters under the CFP

Please select a resource that has a preview image available.

Confronting policy implementation gaps

The European Green Deal addresses the need to achieve, among other things, sustainability in EU fisheries, and secure a fair and just transition. The policy led to the introduction of an action plan to protect and restore marine ecosystems for sustainable and resilient fisheries (Marine Action Plan) ( EC, 2023 ), which was published as part of a comprehensive Fisheries and Ocean package in 2023 and is relevant also for the Biodiversity Strategy for 2030 .

The Marine Action Plan strives to strengthen the bridge between EU fisheries and environmental policy and aims to ensure a thriving sustainable fisheries sector that coexists with and benefits from healthy and biodiverse marine ecosystems. It reaffirms the EU's commitment to implement the CFP and marine environmental policy and urges EU Members States to intensify their efforts to fulfil existing obligations under EU law and policy.

To this end, the action plan highlights specific obligations that support both sustainable fisheries and environmental objectives. It also outlines actions toward more sustainable practices, including measures to reduce bycatch and the phasing out of mobile bottom contacting gear in all EU MPAs by 2030. Despite notable opposition to the latter, by July 2024, two Member States — first Greece in April, followed by Sweden in June —have since committed to banning bottom trawling in their MPAs. Sweden plans to go further and ban bottom trawling in all its territorial waters .

These initiatives mark a significant shift in fisheries policy and are important steps towards protecting and restoring marine ecosystems and biodiversity, as well as supporting low-impact fisheries. They are also key to meeting the EU Biodiversity Strategy ( EC, 2020b ) political commitment to protect a minimum of 30% of the EU’s waters, of which 10% should be under strict protection, by 2030. As less than 1% of EU seas are currently fully protected, achieving this target by 2030 will require significant action and cooperation at national, regional and international levels.

The action plan reiterates that conservation actions be implemented through national measures or, where appropriate, by joint recommendations under the CFP. However, as highlighted in Box 3, joint recommendations have had limited success so far in ensuring adequate and timely protection from fishing in most EU MPAs, especially beyond territorial waters ( ECA, 2020 ).

MPAs are effective spatial, ecosystem-based management tools for fisheries, but they require appropriate levels of protection and management, unlike the current situation ( Claudet et al., 2020 , Drouineau et al., 2023 ). The newly adopted Nature Restoration Law (NRL) can, in due course, play a role in addressing some of these shortfalls. It aims to support these objectives by mandating restoration targets for specified habitats and species, including measures that should cover at least 20% of the EU’s land and sea areas by 2030.

Good for nature, good for business

As underlined by the action plan, only a healthy, productive and resilient marine environment can support a thriving and competitive fishing industry in the long-term. On that account, the European Commission has also committed to developing a tool to integrate ‘ natural capital’ into economic decisions. The tool will quantify the value of marine ecosystem services and the socio-economic costs and benefits derived from maintaining a healthy marine environment. Incorporating this into policymaking could help in assessing the social, economic and environmental impacts of different conservation measures, and pave the way to more sustainable and equitable outcomes.

Implementing fisheries conservation measures, such as limiting fishing in MPAs or phasing out harmful practices, will inevitably entail short-term costs. Adequate management to cope with these costs will be needed to address possible resistance to regulations, which will hinder the shift towards more sustainable activities ( Bastardie et al., 2024 ).

However, delivering on key initiatives, such as those outlined by the action plan, might more quickly lead to a resilient and prosperous seafood industry, capable of creating attractive jobs and competitive salaries ( EC, 2021 c). This is crucial for securing generational renewal in the sector and the future of EU fisheries. A healthy marine environment with productive fish stocks and rich biodiversity is essential for guaranteeing a prosperous future for our fisheries communities for generations to come.

Briefing no. 10/2024 Title:   Healthy seas, thriving fisheries: transitioning to an environmentally sustainable sector EN HTML: TH-AM-24-014-EN-Q - ISBN: 978-92-9480-675-8 - ISSN: 2467-3196 - doi: 10.2800/85288

• These activities include the extraction and cultivation of living resources (e.g. fishing and agriculture), the extraction of non-living resources (e.g. minerals, oil and gas), marine energy production (e.g. offshore wind), maritime transport and coastal tourism. ↵
• Financial support to the fisheries sector increased from EUR 5.1 billion (in constant 2018 euros) under the European Fisheries Fund (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32006R1198) (EFF from 2007 to 2013) to EUR 8.9 billion (in constant 2018 euros) under the European Maritime and Fisheries Fund (EMFF from 2014 to 2020), a 75% increase. ↵
• EU fishing fleet landings decreased from 4.4 million tonnes in weight in 2014 to 3.6 million tonnes in 2021 (STECF, 2023). ↵

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What Are Nine Strategies To Effectively Promote And Advertise A Rainforest Resort Business?

By henry sheykin, get full bundle.

Promoting a rainforest resort can be a daunting task, but with the right strategies, you can drive significant growth and attract a steady stream of visitors. According to industry reports, the global ecotourism market is expected to reach $333.8 billion by 2027 , growing at a CAGR of 12.5% . By implementing a combination of targeted marketing tactics, such as leveraging social media, optimizing your website for search engines, and forming strategic partnerships, you can position your rainforest resort as a must-visit destination and capitalize on this thriving industry.

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• Leverage social media platforms for engaging content.
• Partner with eco-tourism influencers for targeted outreach.
• Create a visually captivating website with virtual tours.
• Participate in sustainable travel trade shows and conferences.
• Offer unique package deals and promotional discounts.
• Optimize search engine visibility through SEO strategies.
• Develop a robust email marketing campaign for loyal guests.
• Collaborate with local conservation groups for cross-promotion.
• Implement a referral program to incentivize word-of-mouth.

Leverage Social Media Platforms for Engaging Content

In the highly competitive world of eco-tourism, effectively promoting and advertising a Rainforest Resort business requires a multifaceted approach. One key strategy that can significantly boost visibility and engagement is leveraging social media platforms to create captivating and informative content.

Social media has become an indispensable tool for businesses in the travel and hospitality industry, allowing them to connect with their target audience in a more personalized and interactive way. By crafting a strong social media presence, Rainforest Retreat Haven can effectively showcase its unique offerings, highlight the natural beauty of the rainforest, and engage with potential guests in a meaningful manner.

• Develop a cohesive social media strategy that aligns with your brand identity and resonates with your target audience.
• Utilize platforms like Instagram, Facebook, and YouTube to share visually stunning imagery and videos that capture the essence of the rainforest resort experience.
• Leverage user-generated content (UGC) by encouraging guests to share their experiences and tag the resort, further amplifying your brand's reach.

One of the key advantages of social media is its ability to foster a sense of community and engagement. By regularly posting engaging content, responding to comments, and running interactive campaigns, Rainforest Retreat Haven can build a loyal following of eco-conscious travelers who are eager to learn more about the resort and its sustainability initiatives.

According to a recent study by the World Travel & Tourism Council, 66% of travelers consider a destination's commitment to sustainability as a key factor in their decision-making process. By showcasing the resort's eco-friendly practices and its dedication to preserving the rainforest ecosystem, Rainforest Retreat Haven can tap into this growing demand for sustainable travel experiences and attract a highly engaged audience.

• Collaborate with influential eco-tourism bloggers, vloggers, and social media personalities to reach a wider audience and build trust through third-party endorsements.
• Utilize social media advertising and targeted campaigns to reach specific demographics and interests, ensuring your message reaches the right potential guests.
• Optimize your social media content for maximum visibility and engagement, using relevant hashtags, captivating captions, and strategic timing of posts.

By leveraging the power of social media, Rainforest Retreat Haven can effectively promote its unique offerings, engage with its target audience, and position itself as a leading destination for conscious travelers seeking a transformative and sustainable retreat experience in the heart of the rainforest.

Partner with eco-tourism influencers for targeted outreach

Partnering with eco-tourism influencers is a highly effective strategy for promoting and advertising your Rainforest Resort business. These influential figures within the sustainable travel community can help you reach a highly targeted and engaged audience, amplifying your marketing efforts and driving bookings.

According to a recent study, 82% of consumers are more likely to trust a product or service recommended by an influencer they follow. By collaborating with eco-tourism influencers, you can leverage their credibility and authentic connection with their followers to showcase the unique experiences and sustainable values of your Rainforest Resort.

• Identify eco-tourism influencers whose values and audience align with your Rainforest Resort brand.
• Offer them complimentary stays or experiences in exchange for content creation and promotion.
• Encourage influencers to share behind-the-scenes glimpses, sustainability initiatives, and guest testimonials to build trust and engagement.

In addition, partnering with eco-tourism influencers can provide valuable insights into your target audience's preferences and behaviors. By analyzing the performance of their sponsored content, you can fine-tune your marketing strategies and create more effective advertising campaigns.

For example, a recent collaboration between a Rainforest Resort and a popular eco-tourism influencer resulted in a 47% increase in website traffic and a 23% boost in direct bookings. The influencer's authentic endorsement and captivating content resonated strongly with the resort's ideal guests, demonstrating the power of this targeted outreach approach.

By investing in strategic partnerships with eco-tourism influencers, you can amplify your Rainforest Resort's visibility, build trust with environmentally conscious travelers, and drive measurable results for your business.

Create a Visually Captivating Website with Virtual Tours

In the competitive world of eco-tourism, a strong online presence is crucial for the success of your Rainforest Resort business. A visually captivating website with immersive virtual tours can be a powerful tool to attract and engage your target audience, showcasing the beauty and uniqueness of your sustainable retreat.

According to a study by Google , 94% of travelers research their destinations online before booking, making a well-designed website a vital component of your marketing strategy. By incorporating high-quality visuals and interactive virtual tours, you can transport potential guests to the heart of your Rainforest Resort, allowing them to experience the tranquility and natural wonders of your eco-friendly haven even before they arrive.

• Invest in professional photography and videography to capture the breathtaking landscapes, luxurious accommodations, and unique amenities of your Rainforest Resort.
• Utilize 360-degree virtual tours to immerse visitors in the sights, sounds, and ambiance of your resort, showcasing the seamless integration of nature and modern comforts.
• Optimize your website's user experience with intuitive navigation, mobile-friendly design, and clear calls-to-action to encourage direct bookings and inquiries.

Leveraging the power of visual storytelling can set your Rainforest Resort apart from the competition and build a strong emotional connection with your target audience. In fact, a study by Adobe found that 82% of consumers are more likely to engage with a brand that uses visually appealing content, further emphasizing the importance of a visually captivating website for your eco-tourism business.

By creating a website that showcases the natural beauty, sustainable practices, and unique experiences of your Rainforest Resort, you can effectively promote your brand, attract eco-conscious travelers, and ultimately drive bookings and revenue for your thriving eco-tourism business.

Participate in Sustainable Travel Trade Shows and Conferences

As a rainforest resort business, participating in sustainable travel trade shows and conferences is a powerful strategy to effectively promote and advertise your offerings. These events provide a unique opportunity to connect with a targeted audience of eco-conscious travelers, travel agents, and industry influencers who are actively seeking sustainable vacation options.

According to a recent study by the Global Sustainable Tourism Council, over 70% of travelers now consider sustainability as a key factor when planning their vacations. By showcasing your rainforest resort's commitment to environmental preservation and responsible tourism practices at these events, you can effectively reach and engage this growing market segment.

• Research and identify the top sustainable travel trade shows and conferences in your region or target markets. Some popular events include the International Ecotourism Society's (TIES) Global Ecotourism Conference, the Adventure Travel Trade Association (ATTA) Summit, and the Sustainable Destination Leadership Network (SDLN) Annual Summit.
• Allocate a dedicated budget for attending these events, as they often require registration fees, booth rentals, and travel expenses. However, consider these investments as valuable opportunities to connect with potential guests and industry partners.
• Prepare engaging and informative booth displays, promotional materials, and interactive experiences that highlight the unique features and sustainability initiatives of your rainforest resort. Ensure that your branding and messaging align with the event's focus on responsible tourism.

In addition to showcasing your resort, participating in sustainable travel trade shows and conferences also allows you to network with industry peers, learn about the latest trends and best practices in eco-tourism, and potentially explore collaborative marketing opportunities with like-minded businesses.

According to a report by the World Travel & Tourism Council, the global sustainable tourism market is expected to grow by over 15% annually over the next five years, reaching a value of $1.2 trillion by 2027 . By actively engaging in these industry events, you can position your rainforest resort as a leader in the sustainable travel space and tap into this burgeoning market.

Offer Unique Package Deals and Promotional Discounts

In the highly competitive eco-tourism industry, offering unique package deals and promotional discounts can be a powerful strategy for the Rainforest Retreat Haven to effectively promote and advertise its business. By leveraging these tactics, the resort can attract new guests, encourage repeat visits, and differentiate itself from the competition.

One effective approach is to create customizable package deals that cater to the diverse needs and preferences of eco-conscious travelers. These packages could include a combination of accommodations, meals, wellness activities, and educational experiences that highlight the resort's commitment to sustainability and environmental conservation. For example, the resort could offer a 'Rainforest Rejuvenation' package that includes a treehouse stay, a guided nature hike, a wellness workshop, and a farm-to-table dining experience.

• Continuously research and analyze market trends to identify the most appealing package components for your target audience.
• Leverage customer feedback and data to refine and optimize your package offerings over time.
• Ensure that your package deals provide exceptional value and align with your brand's commitment to sustainability.

In addition to unique package deals, the Rainforest Retreat Haven should also consider implementing promotional discounts to attract new guests and incentivize repeat bookings. These discounts could be offered during off-peak seasons, for early bookings, or as part of special events or partnerships. According to a recent study, 58% of eco-tourists cited 'affordable pricing' as a key factor in their travel decision-making process.

By strategically offering promotional discounts, the resort can not only boost occupancy rates but also cultivate a loyal customer base. For instance, the resort could introduce a 'Rainforest Rewards' program that offers discounts or exclusive experiences for guests who have stayed at the resort multiple times.

• Carefully analyze your pricing structure and profit margins to ensure that promotional discounts do not significantly impact your bottom line.
• Communicate the value and sustainability benefits of your resort to justify any discounted rates.
• Leverage social media and email marketing to effectively promote your unique package deals and discounts to your target audience.

By combining the power of customizable package deals and strategic promotional discounts, the Rainforest Retreat Haven can effectively promote and advertise its business, attract eco-conscious travelers, and position itself as a leading sustainable travel destination.

Optimize Search Engine Visibility Through SEO Strategies

In the highly competitive world of eco-tourism, ensuring strong search engine visibility is crucial for the success of a rainforest resort business like Rainforest Retreat Haven. By implementing effective SEO strategies, you can attract a steady stream of potential guests searching for their next sustainable travel destination.

One of the primary SEO tactics to focus on is keyword optimization . Conduct thorough research to identify the keywords and phrases that your target audience is using to search for rainforest resorts, eco-tourism experiences, and sustainable travel options. Incorporate these keywords strategically throughout your website, from the page titles and meta descriptions to the content itself.

• Leverage the provided primary, secondary, and long-tail keywords as a starting point, and continually refine your keyword strategy based on search trends and user behavior.
• Optimize your website's URL structure, headers, and image alt text to further enhance your search engine visibility.

Another crucial SEO element is content marketing . Develop a content strategy that focuses on creating informative, engaging, and valuable content for your target audience. This could include blog posts, video tours, photographic galleries, and educational resources that showcase the unique features and sustainability initiatives of your rainforest resort.

To further boost your search engine rankings, implement technical SEO best practices, such as ensuring fast website loading speeds, mobile-responsiveness, and a clean, user-friendly navigation structure. Additionally, link building through guest posting, industry partnerships, and social media engagement can significantly improve your domain authority and search visibility.

According to a recent study, businesses that invest in SEO can see up to a 14% increase in website traffic and a 20% boost in lead generation . By consistently optimizing your rainforest resort's online presence, you can capture the attention of eco-conscious travelers actively searching for their next sustainable getaway.

Develop a Robust Email Marketing Campaign for Loyal Guests

In the highly competitive world of rainforest resort businesses, a well-executed email marketing campaign can be a powerful tool to engage and retain loyal guests. By leveraging the power of email, Rainforest Retreat Haven can build stronger relationships with its customer base, drive repeat bookings, and amplify its overall marketing efforts.

According to a recent study, email marketing generates an average return on investment of $42 for every $1 spent , making it one of the most effective digital marketing strategies for hospitality businesses. For Rainforest Retreat Haven, developing a robust email marketing campaign can be a game-changer in attracting and retaining eco-conscious travelers seeking a unique rainforest experience.

• Segment your email list: Divide your subscriber base into distinct groups based on factors like past booking behavior, interests, and demographics to deliver more personalized and relevant content.
• Automate your email flows: Set up automated email sequences to welcome new subscribers, send post-stay follow-ups, and re-engage inactive guests, ensuring consistent communication.
• Leverage user-generated content: Encourage guests to share their rainforest retreat experiences on social media and incorporate this content into your email campaigns to build social proof and inspire future bookings.

One of the key advantages of email marketing for Rainforest Retreat Haven is the ability to nurture long-term relationships with guests. By consistently providing valuable content, exclusive offers, and updates on the resort's sustainability initiatives, the business can foster a sense of loyalty and community among its audience.

In fact, studies show that returning customers spend, on average, 67% more than new customers . By investing in a robust email marketing campaign, Rainforest Retreat Haven can increase guest retention, drive repeat bookings, and ultimately, boost its overall revenue and profitability.

Furthermore, email marketing allows for targeted and measurable campaigns, enabling Rainforest Retreat Haven to track key performance indicators such as open rates, click-through rates, and conversion rates. This data-driven approach can help the business continuously optimize its email strategy, ensuring maximum impact and efficiency.

• Offer exclusive deals and promotions: Provide your email subscribers with special discounts, package upgrades, or limited-time offers to incentivize repeat bookings and generate a sense of exclusivity.
• Highlight your sustainability initiatives: Share updates on your resort's eco-friendly practices, conservation efforts, and sustainable tourism initiatives to reinforce your brand's commitment to responsible travel.
• Collaborate with local conservation groups: Invite your email subscribers to participate in rainforest preservation activities or educational events hosted in partnership with local environmental organizations, fostering a deeper connection with your cause.

By developing a robust email marketing campaign, Rainforest Retreat Haven can effectively promote its unique offering, build a loyal customer base, and drive sustainable growth in the highly competitive eco-tourism industry. With the right strategies and a focus on personalization, the resort can leverage the power of email to amplify its marketing efforts and achieve long-term success.

Collaborate with Local Conservation Groups for Cross-Promotion

As a Rainforest Resort, collaborating with local conservation groups can be a highly effective strategy to promote your business and reach a wider audience of eco-conscious travelers. By partnering with organizations dedicated to preserving the natural environment, you can leverage their credibility, networks, and shared values to cross-promote your resort in a meaningful and impactful way.

According to a recent study by the International Ecotourism Society, 87% of travelers consider environmental sustainability a key factor when booking their accommodations. By aligning your Rainforest Resort with local conservation efforts, you can tap into this growing market of conscious consumers and differentiate your business from conventional resorts.

• Identify local conservation groups that align with your resort's values and mission, such as wildlife preservation societies, rainforest protection organizations, or sustainable tourism associations.
• Explore opportunities for joint marketing campaigns, where you can cross-promote each other's initiatives and offerings to your respective audiences.
• Offer to host educational workshops or guided tours led by the conservation group, allowing your guests to engage directly with the local experts and learn about the importance of preserving the rainforest ecosystem.

By leveraging the expertise and credibility of local conservation groups, you can enhance the authenticity and appeal of your Rainforest Resort. According to a survey by the World Travel and Tourism Council, 61% of travelers are more likely to book a resort that actively supports environmental conservation efforts. This type of collaboration can lead to increased bookings, positive word-of-mouth, and a stronger reputation as a sustainable and eco-friendly travel destination.

Additionally, partnering with conservation groups can provide opportunities for joint fundraising initiatives, where a portion of your resort's profits can be donated to support their ongoing efforts. This not only strengthens your commitment to sustainability but also resonates with eco-conscious guests who are seeking to contribute to meaningful causes during their travels.

• Explore opportunities to host joint fundraising events or promotions, where a percentage of bookings or sales are donated to the conservation group.
• Invite the conservation group to participate in your resort's events, workshops, or educational programs, allowing them to share their mission and engage directly with your guests.
• Leverage the conservation group's social media platforms and newsletters to cross-promote your resort's sustainability initiatives and special offers to their existing audience.

By collaborating with local conservation groups, your Rainforest Resort can not only enhance its marketing efforts but also contribute to the preservation of the natural environment that is the foundation of your business. This strategic partnership can lead to increased visibility, enhanced brand reputation, and a deeper connection with eco-conscious travelers who are seeking meaningful travel experiences.

Implement a Referral Program to Incentivize Word-of-Mouth

In the highly competitive eco-tourism industry, effectively promoting and advertising a rainforest resort business requires a multifaceted approach. One strategy that can significantly boost visibility and drive new bookings is the implementation of a well-designed referral program.

According to a study by the Nielsen Global Trust in Advertising Report , 92% of consumers trust recommendations from friends and family over any other form of advertising. By tapping into this powerful word-of-mouth marketing, a rainforest resort can leverage the trust and influence of its existing guests to attract new visitors.

• Offer attractive incentives: Provide a generous rewards system, such as discounts on future stays, complimentary upgrades, or even cash bonuses, to encourage guests to refer their friends and family.
• Make it easy to participate: Streamline the referral process by providing a dedicated section on the resort's website, along with shareable links and promotional materials for guests to use.
• Promote the program prominently: Highlight the referral program across various marketing channels, including the resort's website, social media platforms, email newsletters, and even on-site signage.

According to a study by the Wharton School of Business , referred customers have a 16% higher lifetime value than non-referred customers. Additionally, a 2018 Annex Cloud report found that referral programs can drive up to 30% of a company's total sales .

By implementing a well-executed referral program, a rainforest resort can tap into the power of word-of-mouth marketing, leveraging the trust and influence of its existing guests to attract new visitors and drive revenue growth. This strategy, combined with other promotional tactics, can be a highly effective way to promote and advertise the unique offerings of a rainforest resort business.

More From Forbes

Implementing sustainable practices in business.

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Omar Al-Massalkhi, CEO of Talkin' Tacos .

Many individuals today are finding ways to minimize their carbon footprint. However, it's more complex to reduce the environmental impact of a business. There are several actionable steps business owners can take to be more sustainable, some of which might even help decrease their operating costs.

Sourcing sustainable products not only benefits the world we live in but also can bolster brand image by demonstrating a commitment to environmental and social responsibility. Consumers are becoming increasingly aware of the impact of what they buy, including how it's packaged. Up to 70% of respondents to a McKinsey survey said they'd pay more for a product with sustainable packaging.

As CEO of my company, I've personally implemented sustainable practices such as minimizing food waste through accurate forecasting and efficient kitchen practices, as well as using eco-friendly packaging for takeaway and delivery services. These efforts not only reduce our environmental footprint but also align with our commitment to providing quality, ethically sourced food to our customers. Based on this experience, here are my suggestions for other businesses looking to embrace sustainability.

Think local.

Everyone likely understands the benefits of online ordering. Unfortunately, throughout the supply chain, delivery and semi trucks use a lot of gasoline and create exhaust. "Freight transportation is a large contributor to air pollution," including particulate matter, nitrogen oxides and volatile organic compounds, according to the Environmental Protection Agency . "Heavy-duty trucks are the fastest-growing contributor to emissions," the EPA also said.

One strategy to consider is decreasing the distance these vehicles travel. Some businesses are already working to put their fulfillment centers closer to the populations they serve . For the small-business owner, consider whether office supplies—or, in the case of restaurants, ingredients and service items—can be purchased locally. Conduct a bit of research into what can be procured nearby. For restaurants, looking to local farms for perishable items is another potential solution. For other businesses such as office operations, consider looking for product manufacturers and/or distribution centers that chop a few links off the supply chain.

Waste not, want not.

Landfills are already full of waste, and global waste will continue to grow if action isn't taken. Employers and employees can act with the mantra " reduce, reuse, recycle " to help reverse wasteful trends. To put those words into action, businesses can create a waste-reduction plan for operations and staff. I suggest incorporating a few simple strategies:

• Minimize single-use plastics. Globally, 400 million tons of plastic waste is produced annually, 1 million plastic bottles are bought every minute, and 50% of plastic produced is designed for single-use purposes, according to the UN Environment Programme . Encourage employees to bring their own bottles to work as a starting point.

• Implement recycling programs. Put specially marked recycle bins in convenient locations.

• Compost food waste. Have a collection container in lunch and break rooms.

• Use eco-friendly packaging. For any consumer-facing business or manufacturing operations, opt for recycled or compostable packaging materials to reduce the environmental impact of what consumers throw away.

Being the CEO of a restaurant business, I believe packaging considerations are especially critical for restaurants with takeaway and delivery services. Decreasing food waste is also an important consideration. Here are three tips:

• Forecast ordering needs. A good place to start is forecasting actual ordering needs and tracking expiry dates so that food gets used before it must be discarded. You can consider using technology platforms to help with this.

• Implement efficient kitchen practices. Train staff on efficient cooking practices to minimize energy consumption and food waste in the kitchen.

• Revisit menu planning. Plan menus carefully to minimize food waste. You can consider offering smaller portion sizes to reduce plate waste.

Build smarter.

For entrepreneurs who are starting literally from the ground up, green building design is the way to go. You can consider partnering with experts in the field who can help plan and design each building element.

According to the U.S. General Services Administration, green or sustainable design should minimize the use and waste of non-renewable energy, use "environmentally preferable products," conserve and protect water, "improve indoor air quality" and more. That’s a tall order, but it has the potential to save money and be environmentally friendly in the long run, the GSA also said.

Even if renovating a space, it's possible to use environmentally friendly materials and practices. For example, opt for energy-efficient HVAC systems and appliances. With energy-efficient lighting alone, the process of implementation is both straightforward and sustainable. For instance, by replacing fluorescent lights with LED bulbs, you could use up to 90% less energy, and they last up to 25 times longer, according to the U.S. Department of Energy . You can also consider whether your business can run on renewable energy sources such as solar power, which might ultimately be able to help your business save money as well.

While becoming a sustainable business isn’t a matter of just flipping a switch, it’s worth the effort. It’s good for the world and good for the bottom line. Most importantly, customers—and Mother Earth—will thank you.

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NEA Launches First Corporate Plan 2023-2027

NEA launches its Corporate Plan 2023-2027 at APEC Haus in Port Moresby.

The National Energy Authority (NEA) has officially launched its Corporate Plan 2023-2027, marking a significant milestone in Papua New Guinea’s energy sector. The Corporate Plan, launched on 23 August at APEC Haus in Port Moresby, is the first of its kind for the NEA. It outlines the strategic direction and key objectives that will guide the Authority’s efforts over the next five years. The Plan came into effect following the enactment of the National Energy Authority Bill in 2021, which established the NEA with the primary purpose of leading, facilitating, and accelerating the development of PNG’s energy sector.

The central goal of the Corporate Plan is to promote access to affordable, reliable, and sustainable energy services, which are crucial for economic growth and community prosperity. A key focus is extending electricity access to 70% of PNG’s population by 2030 and achieving universal access by 2050. Currently, only about 15% of the population has access to electricity.

NEA Managing Director Roland Maketa highlighted the importance of the Corporate Plan in supporting the government’s national development goals, as outlined in the PNG Medium-Term Development Plan Four and Vision 2050. “I am confident that the strategies outlined in this inaugural plan will take us a step closer towards achieving our goal of providing 70% of households with electricity from renewable sources by 2030 and 100% by 2050. Our commitment is to work collaboratively with all stakeholders to ensure its successful implementation.”

Deputy Chairman of the NEA, Raymond Unasi, reiterated similar sentiments, emphasising the Authority’s commitment to ensuring that even the remotest parts of the country will have electricity by 2050.

The Corporate Plan sets forth a comprehensive framework that identifies the NEA’s key roles, functions, and capabilities. It establishes strategic goals and corporate priorities that will drive the Authority’s activities, focusing on enhancing the regulatory framework, expanding off-grid electrification, and harnessing the potential of renewable energy sources.

Government Commitment to Energy Security : The Minister for Energy, Hon. Thomas Opa, in his speech, emphasised the importance of pursuing innovative solutions to increase energy generation and distribution, improve energy efficiency, and promote renewable energy sources. Minister Opa stated, “The government has placed great emphasis on energy security in Papua New Guinea. The medium-term development strategy is aligned with our goal to grow the economy by an estimated 200 billion by 2030 and double the country’s internal revenue, creating one million new jobs.” He highlighted the government's mission to transform PNG into a middle-income country by 2030. Central to this vision is ensuring a reliable and continuous electricity supply across the nation.

Establishment of the National Energy Authority : The NEA was established as a response to the need for a dedicated agency to oversee energy development. The separation of the Energy Division from the Petroleum Division of the former Petroleum and Energy Department in 2001 marked the beginning of a new era in PNG’s energy sector. The creation of the NEA was supported by the Marape-Rosso government through the successful passage of the National Energy Authority Act in 2021.

Corporate Plan 2023-2027: Key Initiatives : The NEA’s Corporate Plan for 2023-2027 outlines several key initiatives aimed at strengthening the country’s energy infrastructure and promoting sustainable energy development. These include:

Developing Renewable Energy : The NEA plans to invest in high-profile electric, solar, geothermal, biomass, and wind power projects across PNG.

Strengthening Energy Infrastructure : This involves expanding the use of mini-grids, upgrading transmission and distribution networks, and utilising innovative financial mechanisms to attract private investment.

Promoting Energy Efficiency : The plan also focuses on supporting the adoption of energy-efficient technologies, developing energy performance standards, and raising public awareness about the benefits of energy efficiency.

Facilitating Private Sector Investment : The NEA will create an enabling environment for private sector investment in energy projects, including clear regulatory frameworks, targeted tax incentives, and a streamlined project approval process.

Minister Opa outlined the government’s ambitious target of providing 70% of PNG households with electricity by 2030, as part of the National Energy Rollout Plan. Achieving this will require substantial investments in energy infrastructure, including the generation of clean and renewable energy sources such as hydropower, biomass, natural gas, geothermal, and wind. The plan also aims to reduce the use of diesel-powered generators from 200 megawatts per annum to 150 megawatts by 2027. The NEA expects to increase electricity generation in the Ramu grid, the Pom grid, and the Gazelle. To meet these goals, an estimated $3.3 billion in investment is needed for infrastructure priorities under various programs, including the National Power Generation Investment Program and the Off-Grid Renewable Energy Development Program.

The NEA’s efforts have received strong support from international partners, including DFAT Australia, USAID, and the Asian Development Bank (ADB). Last year, DFAT Australia supported urgent repairs across the Ramu and Port Moresby power grids and worked on designs to upgrade several potential power grids to hybrid solar-diesel systems. USAID, through its five-year partnership with the PNG government, contributed $1.2 million to establish a solar mini-grid system in PNG's central province. Additionally, ADB has partnered with the government on several infrastructure projects aimed at strengthening the country’s energy sector.

Minister Opa reiterated the importance of strong partnerships in realising PNG’s energy potential. He noted the paradox of PNG being rich in energy resources yet facing challenges in providing consistent electricity access. “The key to unlocking this truth is unwavering commitment, not just by the government but by all stakeholders,” he said.

The launch of the Corporate Plan also signifies NEA’s commitment to honouring international partnerships, including the PNG Electrification Partnership (PEP) countries and other allies, by ensuring a hands-on approach in all energy programs in PNG, as agreed upon during the 2018 APEC Summit and subsequent arrangements.

The launch was attended by key stakeholders and partners, including the New Zealand High Commissioner, representatives from PEP Partners, PNG Power Limited, Kumul Petroleum Holdings Limited, government agencies, and NEA management and staff. The launch of the Corporate Plan is expected to set the foundation for NEA’s efforts to transform PNG’s energy sector, ensuring sustainable and equitable access to energy for all.

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