Futurespace Courageous Conversations: business responsibility and sustainable business practices

December 09 2024

How sustainable is your business? What changes can your organisation make to reduce its environmental impact? Have you explored regenerative business models, set net-zero targets, and considered investing in green technologies? 

Adopting sustainable business practices can be challenging, especially for small and mid-sized firms. At the 2024 Futurespace workshop we asked attendees to discuss strategies and frameworks to help businesses reduce their environmental impact while also improving their bottom line. Here we share the thoughts that emerged from those conversations. 

Understanding sustainable practices 

  • Regenerative business models: these models go beyond sustainability to restore and regenerate ecosystems. They focus on circular economy principles, where waste is minimised and resources are reused. 
  • Net-zero targets: setting ambitious net-zero targets involves reducing greenhouse gas emissions to as close to zero as possible, with any remaining emissions balanced out by removing an equivalent amount from the atmosphere. 
  • Green technologies: investing in technologies such as electric vehicles, renewable energy sources (solar panels, wind turbines), and energy-efficient software can significantly reduce a company’s carbon footprint. 

Framework for implementation 

  • Assessment tools: undertake a thorough assessment of your current environmental impact using tools such as carbon footprint calculators to understand where your biggest impacts lie. This can help identify areas for improvement. 
  • Set goals: establish clear, achievable goals. These could include reducing energy consumption, minimising waste, or transitioning to renewable energy sources. 
  • Action plan: develop a detailed action plan outlining the steps needed to achieve your goals. This might include investing in energy-efficient equipment, reducing travel, or implementing recycling programmes. 
  • Monitoring and reporting: regularly monitor your progress and report on it. Environmental, social, and governance reporting can be a useful framework, even if not yet mandated.  

Support, tools and metrics 

  • External help: organisations like Toitū provide certification and guidance on sustainability practices, though they can be cost-prohibitive for smaller firms. Look for local or industry-specific initiatives that might offer more affordable support.  
  • Education and training: educate your people on the importance of sustainability and how they can contribute. Simple actions like turning off computers when not in use can make a difference. 
  • Collaboration: firms can support each other through sharing data, resources, and best practices to help create a more sustainable industry overall. 
  • Knowledge sharing: ACE supports and encourages the sharing of learnings, knowledge and best practices between member firms through industry forums and events, conversations and thought leadership.
  • Common metrics: establish common metrics for comparison, such as carbon emissions per employee or per unit of revenue. This can help benchmark performance against industry standards.  

Small business focus 

  • Cost-effective measures: small businesses can start with low-cost measures such as reducing energy use, minimising waste, and encouraging sustainable commuting options. 
  • Benchmarking: establish benchmarks to measure progress. This could include metrics like energy consumption per employee or waste generated per unit of production. 
  • Client and supplier engagement: engage with clients and suppliers to encourage sustainable practices throughout the supply chain. This can also help meet increasing requirements in Requests for Proposals. 

Broader picture 

  • Procurement impact: consider the environmental impact of your procurement decisions. Choose suppliers who prioritise sustainability. 
  • Greenwashing: be wary of greenwashing – making misleading claims about the environmental benefits of a product or service. Ensure your sustainability claims are backed by evidence. 
  • Offset opportunities: while reducing emissions should be the priority, offsetting can be a temporary measure. This could include initiatives like tree planting or investing in renewable energy projects. 

Education and advocacy 

  • Industry associations: engage with industry associations like ACE to advocate for sustainability and share resources. 
  • Client education: educate clients on the importance of sustainability and how it can benefit them. This can help create demand for sustainable practices.

See Engineering New Zealand’s Climate Action programme, which supports engineers to take positive action to address climate change through mitigation, transition and adaptation. 

Additional considerations 

  • Long-term commercial arrangements: longer-term contracts can provide the financial stability needed for firms to invest in sustainable practices. 
  • Political environment: the changing political landscape can impact sustainability efforts. Aligning political and technical standards can help mitigate these issues. 
  • Leadership commitment: top-down commitment from CEOs and senior leaders can drive collective action and ensure sustainability is a priority. 
  • Risk aversion: clients may be hesitant to be first movers. Encouraging a shift in client and government commitments can help overcome this barrier. 
  • Handprint versus footprint: emphasise the positive impact (handprint) your work can have on projects, rather than just focusing on reducing your own footprint. 
  • Client scoring and values alignment: incorporate sustainability into client scoring and consider exiting projects where clients are not committed to sustainable practices. 
  • Technical references and overseas knowledge: ACE provides members with access to technical materials and facilitates the sharing of international best practices. 
  • Committed pipeline of work: this can help firms plan and invest in long-term sustainability initiatives. 

Public perception and education 

Public awareness and education can drive government action. Collaborate with educators to include sustainability in school and university curriculums.