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How to Create a Company Sustainability Policy

Discover how to create a sustainability policy for your business, aligning your company’s practices with sustainability principles to making a positive impact. Read more.

Creating a sustainability policy for your business can help you review your current processes and make a plan for a more sustainable future. Your business can directly impact more than just your own operations, so having a sustainability policy can help you put the best interests of your company, customers and the environment first. 1 The main purpose of a sustainability policy or strategy is to ensure your company’s practices and goals align with sustainability principles - i.e. meeting the needs of the present while still protecting the needs of future generations. 2

With that in mind, this article will break down individual steps to help you create a company environmental policy for your business.

Know your business priorities

Sustainability as a term is often used as a catch-all for a range of environmental, social, and governance (ESG) issues. 2 Studies by McKinsey & Company have found that businesses are more effective at addressing sustainability issues when they focus on specific areas of sustainability, such as carbon reductions or reducing packaging waste. 3 You could start creating your small business sustainability policy by listing the key sustainability topics you want to tackle in your business.

Establish a baseline

Looking at your current business practices and assessing their impact is a good way to know where you are starting from. 4 Knowing your baseline can help you plan the best way forward and help you choose where to focus your attention. There are a few areas most companies would benefit from making changes to, such as energy sourcing and consumption, waste management and sustainability reporting. 1 Once you have a clearer picture of your company’s impact, you can create goals that address specific areas of improvement. 4

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Set SMART goals

Use the sustainability priorities and baseline you’ve identified to help you set SMART goals for your company sustainability policy. SMART goals are specific, measurable, achievable, relevant to the company, and time-restricted. 5  For example, a SMART goal could be to reduce energy consumption in your workplace by 20% in the next 12 months. 6

Getting specific about your sustainability goals and setting deadlines for aiming to reach those goals can be useful in keeping your company focused on sustainable processes and motivated to succeed. 5 It's important to be realistic and manage expectations to keep morale high, so you may choose to focus on one or two sustainability tasks you can do well rather than try to tackle everything at once.

Track and Measure

Once you’ve set your goals, you’ll need to decide how to measure them. To know the impact your sustainability actions are having on your business, you’ll need to gather and analyse data. 2 Your goals should tell you what data you need to track and measure. For example, if one of your goals is to reduce food waste in the workplace, you’ll need to keep track of how much food is being thrown out each day, week, or month to know whether you are making progress. If you are not making as much progress towards your goals as you’d hoped, you can reassess your goals and timeframes and make necessary changes. 4

Stay action-oriented

Plans and policies are very useful, but it’s important to take action and implement these plans. You could assign certain tasks to specific members of your team. Have one person sourcing sustainable office supplies while another takes responsibility for replacing light bulbs with energy-efficient alternatives. 6

The growing awareness worldwide of climate change and environmental issues is impacting how companies operate and making sustainability an important part of running a business. 2 Creating a sustainability strategy or policy is a great way to help your business respond to these impacts and minimise any negative environmental impacts it might have. 2

Sources:

  1. https://www.forbes.com/sites/jefffromm/2022/08/04/developing-a-sustainability-plan-for-your-company/?sh=4d5415c65808
  2. https://kaizen.com/insights/importance-corporate-sustainability-strategy/
  3. https://www.mckinsey.com/capabilities/sustainability/our-insights/organizing-for-sustainability-success-where-and-how-leaders-can-start
  4. https://instituteofsustainabilitystudies.com/insights/guides/what-makes-a-strong-sustainability-strategy/
  5. https://www.forbes.com/advisor/business/smart-goals/
  6. https://www.british-business-bank.co.uk/finance-hub/business-guidance/sustainability/how-to-create-a-sustainability-action-plan-for-smaller-businesses/