It was late September 2022; I was sitting in Dubai airport launch awaiting for my flight.
The side table was weighted by a beautifully designed green cover story magazine.
Ignoring the cover story, the colour green compelled me to pick the magazine to discover it was more about start-up than to do with the color green itself.
Shouldering two decades of experience the content of the magazine talked about how today’s consumers are becoming more and more concerned with Corporate Social Responsibility.
We all understand the fact that you can’t just set up a business without considering the impact that your business is going to have on climate change and environmental impacts. If you don’t, you’re missing out on a whole target market and even more, you are opening yourself up to criticism.
The article further spoke on how businesses can have a huge influence in battling climate change, and it pressed on the urgency to act, as we only have 11 more years until climate collapse becomes unavoidable, according to the UN.
As in the sustainable business myself I understand customers know this, and you should too.
Moreover, legislation is being pushed to encourage eco-responsibility and low-impact solutions for products and packaging. Soon, all businesses, new or established, will be forced to consider this, whether they wish to or not.
So, if you are someone who wants to startup you have to be ahead of the curve if you want to survive.
The eco-business sector is a hugely popular market that will only continue to grow. If your new business considers its environmental impact from the very beginning, it not only will keep you ahead of new market regulations but also opens an important niche for environmentally aware consumers.
As this article says, boycotts of products/services that impacts the environment have gone up by 123 per cent from 2010-2012; that’s a whopping number.
Wait! Not just that…
if consumers consider you irresponsible, they won’t buy your product. You are making sure your products are palatable to these consumers, but, helpfully, without excluding customers who are less concerned with the impact of their spending.
It might even get this second group thinking about being more responsible and creating even more consumers in this niche!
Now, if you are still with me up to now, then this makes sense to you.
Well, here is my point.
If you want to create from scratch an eco-business, it does not mean it has to be difficult. Even though it might seem daunting to consider every part of your supply chain, new materials and options for responsible procurement are appearing all the time.
In many cases, during my career; I have helped companies who are creating eco-friendly solutions to reduce costs.
The solution to it is not rocket science but to create a mindset.
If you encourage customers to use their own reusable packaging or create a circular system where packaging or products can be returned and reused or recycled, then you won’t be constantly paying the costs for these items only for them to be thrown away.
Often sustainability means pushing against excess which will always reduce your costs as a business.
For a startup especially, this is key.
Well, the mindset saga will mix very well, if you want to startup, but if you already running a business and you want to go green and also reduce cost-then?
Here is my take on it.
Remember, sustainability and success go hand-in-hand, and profit does not have to be at the expense of it.
Product Design
When you have started your business, first go back and consider your options; have you first built the product/services and then address a problem or the other way round?
Pause for a minute. Most of you thought of a product first! Right?
Speaking to many founders & business owners, many market opportunities for products that solve environmental issues that are created by conventional products- I concluded that alternatives for single-use products, products with reduced impact and emissions, or products free from plastic and excess packaging should be created over a problem concept.
Look at your own life, and observe which areas produce a lot of waste, use a lot of fossil fuels or other unsustainable resources, and produce the most emissions; you can then use these to think about what products or services would be useful in your own life.
Product’s end-of-life
If your products are tangible, where do these go when your consumer is done with them?
This end of life of a product should be a long way off and products should be designed to last. Obviously, it’s also more sustainable to use one thing for a long period of time than to over and over again, without throwing it and reproducing it.
In this approach it encourages customers to buy less often, they are obviously willing to pay more for a longer-lasting product. Longer-lasting products are more financially attractive to consumers, meaning that they are more likely to buy again or become an advocate for your brand.
At some point, though, your product will no longer be usable. How will these leftover materials be disposed of, recycled, or reused? This should be a key consideration.
If you are creating your product from a material that could be recycled, such as metal, think about whether this is actually likely to happen and whether there are systems in place to allow this.
Taking responsibility for the waste is like having your own closed-loop recycling, for example, is looking into taking back used products or running a ‘lending’ scheme to discount new products in the exchange for old products. If this isn’t a feasible option, it’s also a great idea to put clear instructions on how to end the product to waste.
When developing a product, you should ask: when your product is finished, can it be recycled if not, what to do with the waste?
Brand it green
If you want to make a difference, tell your customers!
Our products are plastic-free, fairtrade, and biodegradable and make it clear that your startup is investing in a circular economy and a responsible supply chain.
Don’t just say. Prove it in your every business operation.
This only works when you really are making a difference. Many companies are trying to do this, and many are leveraging this to get a good share of customer’s trust but there are also businesses which present their products as more green than they actually are not only do they damage their brand’s reputation, but you also risk losing the trust of your consumers permanently.
For example, the business might say their packaging is biodegradable, but consumers are beginning to realise that this might mean the packaging breaks down into microplastics, and only in certain conditions.
Transparency and focus on environmental responsibility should be implemented at all stages of business.
Focus on communication to the consumers that taking care of the environment is at the heart of your business model and will not be compromised for the sake of profit at any cost.
Green business Grants
Barclays offers a special green loan scheme to help businesses fund sustainable projects and the investors could also get special tax reliefs from the Government for funding a green business.
Be paperless
Paper. Yes, paper can make a huge difference.
Creating great websites, social media profiles, and online marketing plans that can advertise a green business more effectively than flyers ever could. Environmentally conscious consumers aren’t going to buy from your brand if you produce a load of disposable flyers without a thought for their impact.
However, it doesn’t stop there. You also need to think about the impact that your business’s online presence may have. The servers that run your websites and other online platforms, use a huge amount of energy, and this is only growing.
So, if you are starting up with environmental awareness keep these tips in mind and your business will be leading the way in responsible consumerism and be better set up to face the challenges of the future. Do not be rigid with your business model, be flexible according to the changing legal and political environment and do not forget the consumer psyche.