How to create and implement a sustainability action plan

The move towards sustainability has become an increasingly important issue for smaller businesses regardless of industry sector.

According to research by the British Business Bank, smaller businesses account for around 50% of all UK-business-driven emissions of greenhouse gases (GHGs) – yet the majority (76%) have yet to put in place a decarbonisation strategy.

With the UK legally committed to reducing greenhouse gas emissions to net zero by 2050, smaller businesses are well-placed to become carbon nimble and reduce GHG emissions as part of a wider shift to sustainable business practices and operations.

Along with the positive impact on the environment and society, becoming sustainable could also boost your business and win new customers.

What is a sustainability action plan?

To help your business operate more sustainably, it's a good idea to devise a sustainability action plan.

A sustainability action plan is a strategy for how your company plans to reach targets for achieving environmental, financial, and societal sustainability.

An action plan should look at various factors such as energy use, transport use, and waste disposal. 

It should set targets and outline the actions the business, its employees, and its suppliers should take to help meet its goals.

Five steps for creating a sustainability action plan

1. Do your sustainability research

Start by understanding sustainability principles, why they matter, and the types of sustainable activities smaller businesses can adopt.

Investigate environmental legislation and compliance standards that may apply to your business and industry.

Talk to key stakeholders, such as employees and customers so together you can identify how your business impacts the environment.

It's a good idea to research sustainable business practices such as insulating premises, installing heat pumps, and switching lighting to LEDs, explore how other sustainable businesses operate, and what processes may apply to smaller businesses.

2. Assess your company's current sustainability

Establish how sustainable your company currently is by examining factors such as energy usage and energy suppliers.

There are useful tools for estimating your company's carbon footprint.

You should consider auditing all major business operations, such as how materials are recycled in workplaces, or how employees travel to work, through to how your business sources raw materials and from what type of supplier.

It may be worth considering getting a professional environmental audit of your business, especially if you wish to apply for certification such as ISO 14001 or apply to be a Certified B Corporation.

3. Set your sustainability goals

Using data from your company's environmental audit, identify the areas you want to improve, and establish clear sustainability goals like replacing disposable kitchen cups with drinking glasses or investing company capital in renewable energy stocks.

A key consideration when assessing a goal's applicability is cost- becoming a completely solar-powered office may be an excellent sustainability target, but could prove outside of most smaller businesses' budgets.

Remember to make your sustainability goals SMART – Specific, Measurable, Achievable, Relevant and Timely.

For example, you could set a goal to reduce energy consumption by 20% across your work premises within 12 months.

By measuring how much energy your business uses today, you can take action – such as replacing inefficient lighting – and measure the reduction in energy consumption.

You might also consider setting science-based targets.

These are targets that are motivated by what the latest climate change research suggests is necessary to meet the goals of the Paris Agreement - limiting global warming to well-below 2°C above pre-industrial levels and pursuing efforts to limit warming to 1.5°C. 

4. Identify actions for reaching your sustainability goals

Brainstorm actions that could increase your sustainability across all areas of your company.

It can be a good idea to include employees, suppliers, and customers in this discussion as they may have useful suggestions to contribute.

Evaluate the actions in terms of efficacy and applicability, then draw up a shortlist with expected time frames for implementing each item.

An example of this would be replacing paper towels with hand dryers and fitting these appliances in all company toilets within three months.

Once you have established your company's actions, ensure you communicate them effectively with your workforce, as they will be an active part of enacting these changes.

5. Put your sustainability strategy into action

Assign tasks to different colleagues, for example, one team member could source sustainable stationery while another person researches replacing waste bins with centralised recycling units.

Write your new sustainability strategy and goals into company policy as this will help reinforce green behaviour at all organisational levels. Making eco-friendly practices part of the business ethos also ensures your workforce shares a common vision.

To maximise your company's drive towards sustainability you could produce a mission statement that pledges quantifiable results.

This holds your company to greater accountability and motivates you to succeed in your objectives. The final part of implementing your strategy is reviewing its impact, so make sure you monitor and assess your progress.

Implementing your new sustainability action plan

Implementing your organisation's sustainability action plan requires commitment from the entire workforce and it's essential that everyone is fully informed.  

Ideally, you should have consulted and communicated with your employees while drawing up your action plan and this should make announcing upcoming changes simpler if employees feel that they've had a say in the plan.  

Engaging your staff with a sustainability action plan

When making employees aware of the plan it can be a good idea to include a Q&A session, so staff can raise their concerns.

Use feedback to identify any areas of uncertainty and adapt your communication strategy accordingly.

Ensure employees are kept up to date with new developments and appoint a sustainability plan roll-out manager or staff champion to answer employee questions.

Your company communications could also encompass external parties such as customers and suppliers, so you can share your aims and what actions your business is taking to become more sustainable.

You should anticipate resistance from staff and prepare responses for likely criticisms so consider inviting employees to an open-floor debate where they can voice their concerns.

You can help staff understanding by being clear about your company's mission, explaining the benefits of the changes, and being responsive to employee enquiries.

Measure and report

Monitoring your company's progress towards your sustainability targets demonstrates the action plan's effectiveness and highlights any weaknesses.

A straightforward way of measuring sustainability improvements is to hold an environmental audit or calculate your company's carbon footprint at regular intervals.

Review your data in accordance with your key sustainability goals and if you are behind schedule, identify where improvements need to be made.

Examining your workforce's experience of the plan's rollout through questionnaires and feedback sessions allows you to recognise areas where staff may be struggling to adapt and adjust.

Documenting your progress in the form of reports can ensure that sustainability remains a company priority, especially if you decide to make these reports public.

Your report could include figures on your company's energy usage, water usage, waste production, recycling, and transport use.

An essential part of the report is to demonstrate areas of progress by chronologically comparing reports.

Openly publishing your reports on your company website or social media can help demonstrate your organisation's commitment to sustainable development, help maintain momentum, and could also boost confidence in your company's values from existing stakeholders and potential clients.

Green accreditation schemes

Having your environmental impact certified by a professional body ensures accurate data and adds to your company's credibility as a sustainably focused business.

An Environmental Management System (EMS) is a process that allows businesses to record and monitor their environmental impact, and ensure sustainable processes are in place.

The most widely used EMS in the world is the International Organisation for Standardization 14001 (ISO 14001) Standard and helps businesses improve their environmental impact through activities such as better waste control and more efficient use of resources.

Alternatively, some organisations are becoming a Certified B Corporation.

These are businesses that meet assigned standards of environmental and social performance, with certification being awarded after a comprehensive assessment.

Gaining B Corp status could boost your public and corporate profile as the certification acts a visible indicator of sustainable performance.