16 Nov 2023

Top 5 Strategies for Companies to Level Up Green Credentials

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Companies are under mounting pressure to demonstrate their commitment to environmental responsibility in an era marked by increasing environmental consciousness and a growing awareness of the need for sustainability. A study conducted in 2021 by leading environmental organisations emphasised the significance of green credentials for businesses.

Here are the top five strategies companies can adopt to enhance their green credentials, along with relevant statistics that underscore the urgency of these measures.

1. Sustainable Sourcing and Supply Chain Management

A report from CDP found that supply chain emissions are, on average, 5.5 times higher than a company’s direct emissions. Sustainable sourcing and supply chain management are a cornerstone of green credentials. Companies should focus on:

  • Partnering with eco-conscious suppliers and manufacturers.
  • Implementing emissions reduction strategies in transportation and logistics.
  • Promoting responsible resource use within their supply chains.
  • Providing transparency regarding sourcing practises and ethical considerations.

2. Renewable Energy Adoption

The International Renewable Energy Agency (IRENA) reported a 45% increase in global renewable energy capacity in 2020. Transitioning to renewable energy sources is a powerful means of reducing a company’s carbon footprint. Key strategies include:

  • Investing in on-site renewable energy generation, such as solar and wind power.
  • Implementing energy-efficient technologies and practises in operations.
  • Setting ambitious targets to achieve carbon neutrality or complete reliance on renewable energy.

3. Sustainable Product Design and Manufacturing

The Ellen MacArthur Foundation found that circular economy practises, including sustainable design and manufacturing, could reduce the fashion industry’s carbon emissions by 50% by 2030. Incorporating sustainability into product design and manufacturing processes can significantly enhance green credentials. Considerations include:

  • Utilising eco-friendly materials, such as recycled or biodegradable substances.
  • Implementing lean production techniques to minimise waste and energy consumption.
  • Designing products for durability and ease of repair to extend their lifecycle.

4. Waste Reduction and Circular Economy Practises

The World Economic Forum estimates that the circular economy could generate $4.5 trillion in economic value by 2030. Implementing waste reduction and circular economy practises benefits the environment and leads to cost savings. Strategies encompass:

  • Initiating waste reduction programmes within the company’s operations.
  • Establishing robust recycling and upcycling initiatives.
  • Designing products for durability and ease of repair to extend their lifecycle.Offering product take-back and recycling programmes for customers to dispose of products at the end of their lifecycle responsibly.

5. Green Marketing and Stakeholder Engagement

A 2021 Nielsen survey revealed that 66% of global consumers are willing to pay more for sustainable brands. Effective communication of sustainability efforts is crucial for enhancing green credentials. Strategies include:

  • Maintaining transparency about sustainability initiatives and progress.
  • Pursuing and showcasing relevant green certifications and endorsements.
  • Collaborating with environmental organisations and stakeholders.
  • Educating stakeholders, including customers, employees, and investors, about sustainability and providing tips for reducing their own environmental footprint.

ASPIRE INSIGHTS

By embracing sustainable sourcing, adopting renewable energy, incorporating green design and manufacturing practises, reducing waste, and engaging with stakeholders on environmental matters, companies contribute to a more sustainable planet and position themselves as leaders in their industries. In an era where global sustainability awareness continues to grow, these strategies are no longer optional; they are essential for companies seeking to thrive in an increasingly eco-conscious world. Enhancing green credentials is not just a commitment to the environment; it’s also a strategic imperative in a world where sustainability is paramount.

 

Thanks to Parvin Mohmad for sharing.