I am a digital based business, what does sustainability have to do with me?
I hear this a lot, “I hardly print any more, most of my work is done digitally and I am not large enough to be caught up in the mandatory reporting cycle that is looming.”
Here are some facts that will help you decide whether sustainability should be added as a strategic driver for your business.
1. The sustainability reporting landscape is looming for big business with the Australian Government’s proposal of a 3-year implementation approach for large entities to prepare sustainability reports, including climate related financial disclosure. Smaller entities that are part of a larger Australian / global group or in the value chain of larger entities may be required to measure their carbon footprint and prepare sustainability disclosures for the parent companies. So even if you are not needed to report now there could come a very real time soon that your value chain will ask you to report to them.
2. A good sustainability strategy drives innovation within businesses as they are constantly looking at ways to lower their carbon footprint and be better environmental citizens. Digital businesses are best placed in this new revolution and by encouraging their teams to adopt this way of thinking they are also involving their employee engagement strategy which sits under the “S” of an ESG strategy.
3. Risk management - Covid taught us to expect the unexpected, a good sustainability strategy has risk management weaved all the way through. Whether that risk be from changing weather conditions or human intervention (such as cyber-attack) our businesses need to have a business continuity plan and consider all factors for the safety of all our stakeholders.
4. Better educated customers – According to PayPal “Aussies are putting their money where their mouth is when it comes to environmental and socially sustainable products and services”. When our customers know that every purchasing decision they make has the power to change the world just a little bit, they will choose more wisely. Statistics show that 73% of global consumers are willing to change consumption habits to lessen their negative impacts on the environment. Better stick this one under RISK!
5. Talent attraction and staff retention – we all know that millennials and all of the Gens that come after them are far more informed and confident in what they want and like, and sustainability is a key factor in how they look for roles and how they stay in them. This report by the Society for Human Resource Management found that companies that implement sustainability programs have 55% higher employee morale, 43% more efficient business processes and 38% improved employee loyalty. Another one for your RISK bucket!
6. I cannot believe I am putting this at number 6 but here goes – Our Planet. If you are really not sure about the big WHY which is the fight against climate change then I encourage you to read David Attenborough’s book A life on our planet (only don’t read it before bedtime as I did as it will give you nightmares!) Climate change is all our problem and like it or loathe it we really must do something about it. The good news is that any efforts we make are leading in the right direction, so the trick here is – get started! If you are needing a little more convincing in this space, then book in a Climate Workshop with me to connect your team to the overarching BIG WHY. hello@impactdragonfly.com.au
7. Where our money goes? Sustainable investing is a strategy where you invest in a way that benefits the environment or society. It can simple be avoiding companies or industries in your portfolio whose products conflict with your objectives, morals, and values e.g., Gambling, arms production, fossil fuels. Question – do you have a nominated super fund that has a green portfolio that you utilise or have you the option of switching banks to don’t invest in fossil fuels. All of these decisions are yours to make and for your business to have an impact on.
If you have read this and you are still not sure whether this is the right path for you then why not ask your team or your customers what they think, and if you are keen to become better prepared for when the business world moves from a Nice to Be Sustainable to Have to Be Sustainable reach out to us and we will help you on your journey.