ROI through sustainability is possible, especially when investments are made with a long-term view. Of course, not everything has to return funds, and some sustainability initiatives will cost money. However, there are a few that small businesses can benefit from, even if through cost reduction. From improving energy efficiency to sustainable branding, here are some ideas.
Drainage is often one of the most overlooked parts of sustainability and general property maintenance, especially at a business. However, drainage can be a great investment that pays over time, including a reduction of up to 80% in surface water charges by managing runoff. For many businesses, though, something as simple as permeable pavers can be a major upgrade that reduces long-term drainage costs and improves investor appeal.
One of the most talked-about subjects when it comes to sustainability is energy efficiency. This is critical for small businesses for a number of reasons, not least the high cost of electricity and other essential utilities. While you can’t do anything about the costs you are expected to pay, initial investments in specific products and upgrades can reduce overall costs. These include LED lighting, smart thermostats and appliance (fridges, dishwashers, etc.) replacements.
All businesses produce waste, and some take it more seriously than others, as poor waste management can result in hefty penalties. However, reducing single-use items alone can increase cost savings by around 10%, and that’s just a small part of a circular zero-waste policy with small efficiency tweaks. To further reduce costs and maintain a good ROI on waste management efforts, enact policies for recycling and reuse to eliminate high disposal costs.
From a consumer perspective, one of the strongest investments a small business can make is switching to sustainable branding and packaging partners. Modern customers will align with companies that make such changes, and you can also expect higher brand loyalty through this type of sustainability. Of course, this needs to be authentic and highlighted for customers to get on board, but overall, it has been shown to increase customer acquisition for the past few years.
Customers aren’t the only gateway into returns when investing in sustainability, and employees can be a major motivator and proponent for green policies that impact the bottom line. To get them on board, it helps to offer green employee perks with a high environmental impact, such as cycling initiatives and ride sharing. But why and how? Various recent studies have shown that talented employees will remain at green companies, reducing the high costs of recruitment.
Upgrading property drainage is one of the easiest but most powerful ways of boosting ROI through sustainability schemes. However, small businesses are also avoiding the high costs of waste disposal by implementing a zero-waste policy that handles waste efficiently. Yet further savings can be made by retaining talent who enjoy being part of the company’s green policies.
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