It might not seem like it at first glance, but small businesses can do a lot to help solve the climate crisis.
As a small business owner or manager, you might have a desire to make a bigger environmental impact. But given the scope of the climate crisis, can small businesses really move the needle? The answer is a resounding yes.
While it’s true that the carbon footprint and overall environmental effects of a large business often outweigh those of a small business on a one-to-one basis, that doesn’t mean small businesses can’t make a difference.
Estimates vary, but collectively, small and medium enterprises (SMEs) likely account for a larger share of global greenhouse gas emissions than large businesses do. SME greenhouse gas emissions add up to around 50%-70% of all business sector emissions and 10%-30% of energy consumption, according to an OECD analysis.
Plus, the sheer volume of small businesses — accounting for 99.9% of all businesses in the U.S. — means that individuals and other businesses often have more touchpoints with small businesses, even if they spend more with certain large businesses.
For example, in your own life, perhaps you do most of your shopping at a big-box store, but several of the products you buy there might be from SMEs that supply that retailer. Meanwhile, the plumber who unclogs your sink, the diner you go to on Saturday mornings, and the daycare you take your child to are perhaps all small businesses.
All of these interactions mean that small businesses have many opportunities to influence stakeholders such as customers, suppliers, and other small businesses. In other words, the climate change solutions you adopt can have a multiplier effect, and that can make a big difference in solving the climate crisis.
Use our carbon footprint calculator to see the carbon impact of your company’s on-site energy usage, travel, server usage, and more.
With that in mind, here are five ways to punch above your weight as a small business and improve your environmental impact:
1. Join a Sustainability-Related Network
Small businesses can amplify their environmental impact by joining a sustainability-related network.
For example, by becoming a B Corp, you’re not only signifying to stakeholders that you’re committed to environmental and social responsibility, but you also become part of a global network that advocates for positive change. You can also join B Local groups to tap into an ecosystem of other B Corps in your community. Within these groups, you can attend events like educational sessions that can ultimately help you improve your impact assessment score or community service events that help you make an impact and interact with your neighbors.
Another type of network to join is 1% for the Planet, where you commit to donating at least 1% of revenue to approved environmental organizations. In doing so, your impact can extend beyond the direct amount donated, as you can display the 1% for the Planet logo on your products and website to inspire others to give back. And this can pay off for businesses, considering that 46% of U.S. consumers say the 1% for the Planet logo positively affects their purchasing decisions, according to the organization.
It might seem like you have to be a large business to join these types of groups, but the reality is that companies of all sizes are eligible.
2. Host a Local Environmental Event
Even if you’re not part of a sustainability-related network, you can host your own event to build brand awareness and encourage other individuals and businesses in your community to improve their environmental impact.
For example, a restaurant in an oceanfront community can organize a beach cleanup day, which directly affects your local environment while inspiring more big-picture waste reduction. A garden store can host an event on native planting and provide seeds for attendees to take home, which can also make a local environmental impact while encouraging people to think more about issues like air pollution, biodiversity and their water footprint.
Even if you’re a B2B company and don’t have space to host an event, you can still get involved. For example, a marketing agency can partner with another business that can host, with the agency promoting the event on social media and speaking at the event about ways to more effectively talk about the environment in your business or personal life.
3. Engage in the Circular Economy
Another way to make a significant impact is to engage in the circular economy, which the Ellen MacArthur Foundation defines as “a system where materials never become waste and nature is regenerated.”
The first principle of the circular economy, according to the foundation, is eliminating waste and pollution. In many cases, this requires designing new systems. For example, some cafes serve drinks in reusable glass jars, even for takeaway customers. Customers pay a small deposit and can then swap their jars for clean ones when returning to the cafe. This can reduce packaging costs, reduce waste, and involve customers in circularity.
The second principle is circulating products and materials at their highest value. This could involve practices such as having a rental or resale component of your business, rather than having customers buy items that they’re only going to use once before eventually throwing them out. In many cases, this can be another revenue driver for businesses or reduce costs since you’re not ordering as many new products.
The third and last principle is to regenerate nature. This often applies to areas like farming, where regenerative practices like growing trees alongside crops can improve soil health and biodiversity. While your business might not directly be involved with regenerative agriculture, even small choices like the coffee you serve in your office can have a significant effect in terms of conserving natural resources, limiting soil erosion, cutting carbon emissions, etc.
4. Invest in Renewable Energy
If you have the capital to do so, investing in renewable energy, like by adding a solar array to your roof, can potentially save money in the long run while directly improving your environmental impact.
Not only does switching to renewable energy cut your own emissions, but it can also provide an important signal to employees and customers. For example, if customers see solar panels on your building, that’s a visual reminder that could encourage them to review their own energy use and engage in more sustainable practices.
Even if you don’t directly purchase renewable energy, you can still make a significant environmental impact, such as by switching to a supplier that uses wind power. In turn, you can share information with your customers, such as how your products are manufactured in a facility that sources its electricity from wind, which can similarly inspire them to review their own environmental impacts and choose products that help the natural environment.
5. Buy Carbon Credits
Not every business has the funding to invest in renewable energy generation or make significant shifts like finding new manufacturing partners. For hard-to-cut emissions, small businesses can buy carbon credits to help offset their carbon footprints. These credits help fund carbon reduction projects such as reforestation, landfill methane capture, and orphan well closure. The projects rely on the sale of carbon credits every year to fund their continued operation.
Get started with a simple monthly subscription of carbon credits for just $8.50 per employee that offsets what many businesses emit or use our carbon footprint calculator to calculate a more specific number for your business.
Buying carbon credits can also be an effective way to amplify your impact. You’re not just offsetting your own greenhouse gas emissions. Funding these projects also supports several UN Sustainable Development Goals. For example, forest growth not only absorbs more carbon but can also protect vital habitat and improve overall environmental quality, such as by supporting healthy waterways that provide clean water for individuals.
Ultimately, small businesses can have significant environmental effects that extend far beyond the size of their operations.
Terrapass makes it easy to calculate your carbon footprint and purchase carbon credits to offset your emissions, and we can even help you create custom carbon offset programs to offer to customers.
Take a look at our suite of small business solutions and reach out to see how you can start improving your environmental impact today.
