How Going Green Can Be Good for Your Business

Growing up, my family reused everything possible. From composting to saving jam jars, you can rest assured that if something could be used again, my family would find a way to do it. 

Many households have their own eco-friendly practices in place. But what about the workplace? Are there ways to go green at work? Read on to learn more about sustainability and how it can work for your small business. 

What Does Going Green Mean?

The pressure — and the motivation —  to go green is at an all-time high. So what does going green mean for small businesses? In the professional world, going green means taking steps to make your business more environmentally conscious. Here are some examples of how companies are going green:

• Reducing plastic waste
• Switching to more sustainable materials
• Decreasing the company’s carbon footprint
• Raising awareness and contributing to environmental causes

Benefits of Sustainability in Business

Why are companies becoming more sustainable? Going green is more than just a way to help the environment. It also can work to your advantage, for both your finances and your small business’s brand. 

Tax benefits for green businesses.

Some notable incentives for environmentally friendly franchises are the potential tax benefits.¹ Both federal and state governments offer select tax breaks for businesses advancing toward sustainability. These benefits will vary by state, but some common tax breaks for eco-friendly businesses include:

• The 179D Tax Deduction for energy-efficient commercial spaces. Qualifying business owners may be able to deduct up to $1.88 per square foot when making certain energy-saving improvements to their building. This will primarily benefit the building owners, but tenants may be eligible as well. 
• A tax credit for electric vehicles purchased for business use. This credit applies to businesses that purchase qualifying electric vehicles.
• Tax credits for adopting alternative energy. Businesses that install solar panels, fuel cells, or even wind turbines may be eligible for this credit.

We recommend that you consult with a tax professional or an accountant to understand the tax benefits that may be available for your business.

Grants for green businesses.

Deciding to make your small business sustainable may qualify you for grants to help fund your eco-friendly improvements. Available grants aim to fund all types of green corporate initiatives, such as switching to alternative energy or public health outreach. The Green Business Bureau² is a great resource for finding grants for your small business.

You also can become certified as green. You’ll have a scorecard to keep track of your green initiatives, which also offers a selection of additional improvements you can implement. Your company gets points for each eco-friendly business practice you complete. Once you’ve earned enough points and validated your corporate sustainability initiatives, you may be eligible for certification. What makes a Green Business Bureau certification so special? Well …

Benefits of eco-friendly products.

Eco-friendly business owners have the opportunity to use their sustainability status to market their products and services. A 2020 survey revealed that 78% of U.S. consumers value having a sustainable lifestyle, and 60% indicated they’re willing to pay extra for a product with packaging that is more environmentally friendly.³

With the increase in green consumer behavior, offering eco-friendly products and having a verified green certification will help make your small business stand out from the pack. Many consumers are eager to adopt sustainable practices, and being able to promote your business’s green initiatives will increase its appeal.

Employee satisfaction and retention.

A survey conducted by IBM suggested that prospective employees are beginning to seek roles at eco-friendly companies.⁴ Employees want to work with an organization whose values align with their own. This means companies with green initiatives may have an extra edge when attracting top-quality job applicants. 

And attracting applicants isn’t the only benefit. Prioritizing workplace sustainability can help support a positive work environment. Prioritizing eco-friendly values can provide employees with a sense of purpose. Working toward a positive change can be an incentive for productivity and engagement. 

Environmentally Friendly Business Tips

There are countless ways for companies to go green, both large and small. But for small business owners who may not be working with a lot of extra capital to invest in grand-scale sustainability efforts and corporate green initiatives, starting with a few simple changes may be the best option. Here are some sustainability initiatives for business owners who want to begin going green. 

1. Switch to environmentally friendly products and office supplies. 

If your small business can’t run without sticky notes or it flies through printer ink faster than you can restock it, try looking for alternatives that can offset the waste. 

One easy way is to look for products made from recycled materials. You can find paper, pens, and even copier ink cartridges made from post-consumer materials at most office supply stores. 

2. Get involved with green events and organizations.

Charities and volunteer opportunities geared toward promoting sustainability can be great ways to support a good cause while getting your community and employees involved. Be on the lookout for local nonprofits. If they’re hosting events, see how your small business can help. 

Can’t find any events locally? Try hosting your own event for your team. Company-sponsored highway cleanups or tree planting can be great “go green” activities for employees.  

3. Adopt energy-efficient habits.

Electricity can get pricey when you’re running a small business. All the more reason to seek out energy-saving solutions. Consider swapping out your incandescent light bulbs for LED — they use less electricity and typically last longer. 

Unplug electronics, chargers, and power strips between their use. Make sure you’re turning off unnecessary lights and appliances when you’re not in the room. You can even install motion sensors that automatically shut off the lights when no one is around. 

If your location gets decent sun exposure during the day, try relying more on natural light when you can. These environmentally friendly business practices will not only support your efforts to go green — they’ll help your wallet as well.

4. Try going paperless.

… or at least use less paper. Not every small business can easily ditch paper products altogether. But making small, incremental changes to reduce paper use can make a big impact. 

Switch to a digital filing system, and keep documents secure using cloud storage. Start using recycled paper, and commit to double-sided printing whenever possible. In addition to being more earth-friendly, it can be more cost-effective. 

5. Look for eco-friendly product packaging alternatives.

Customers usually throw away packaging and never give it a thought. So why not try finding a more sustainable solution? Ditch the single-use materials and opt for using recycled paper, cardboard, or even vegetable-based packing peanuts. If you ship products, if possible, avoid plastic shipping bags, and use paper sleeves instead. 

You also can get creative with it! Scrap fabric is a great option for packaging hand-made items while reducing textile waste. Use it to make decorative bags for artisan goods like soaps and candles. You can even make bows and ribbons with it. The unique variety of colors and patterns will help make your products stand out. 

Making Efficient Choices for Your Business Insurance

Running an efficient small business doesn’t end with going eco-friendly. Finding the right business insurance could help you save time, money, and hassle. Simply Business® makes it easy. We work with small business owners every day to help them:

• Reduce waste: Find the coverage they need, without the excess.
• Go “green”: Insurance options from leading carriers that won’t break the bank.
• Be sustainable: Save time and resources by getting a quote online in minutes. 

We offer quotes for general liability, workers’ comp, and more. Just tell us a little about your small business, and we’ll shop options from trusted insurance providers to help you find the coverage you need.

The future is uncertain. Having business insurance — just like going green — can help you prepare for the uncertainty.

Companies Committed to Sustainability

Companies that are environmentally friendly — or trying to be — understand that the key to long-lasting success is keeping a step ahead of competitors. Choosing to adopt sustainable business practices takes time, effort, and funds. Many companies are willing to make the commitment because they believe it will benefit their image and bottom line down the road.

Many large corporations are major contributors to climate change.⁵ But some noteworthy businesses are breaking away from the pack by going green. Here are some examples of companies with good sustainability practices⁶:

• Patagonia: This mainstay in outdoor clothing and gear has a long-standing reputation for environmentally conscious business practices. They often use recycled or organic materials, and a percentage of their sales goes to conservation efforts.
• Dr. Bronner’s: This brand is known for more than just its soaps. Dr. Bronner’s is also known for its fair trade ingredients, post-consumer packaging materials, and a commitment to being a force for good.
• Allbirds: Comfortable and stylish sneakers may be what they’re known for, but this brand has made sustainability a priority. The company is carbon neutral and even invests in carbon offset efforts.

Going green isn’t just for large companies. These are some eco-friendly small businesses:

• Driftaway Coffee: They’re a sustainable coffee subscription service using compostable packaging and are committed to fair trade labor.
• Urban Native Era: This indigenous-owned fashion brand uses recycled paper, water-based ink, and other sustainable materials that reduce plastic waste in their shipping process. 
• Unhidden: While this brand is primarily dedicated to creating stylish and functional fashion designed for individuals with disabilities, it’s also committed to becoming sustainable by using deadstock fabric and left-over textiles. 

One Step at a Time

No single person can reverse the impact of climate change. But your efforts aren’t in vain. Every eco-conscious decision you make is a step in the right direction. When one business goes green, there’s a good chance that others will follow suit as well. So get ahead of the curve! You can start to reap the benefits of going green by implementing small business sustainability initiatives now. Your small business can have a big impact. 

References:

(1) Learn more at Firstcitizens.com.

(2) Learn more at greenbusinessbureau.com

(3) Learn more at Mckinsey.com.

(4) Learn more at Esgtoday.com.

(5) Learn more at BBC.com.

(6) Learn more at Growensemble.com.