Becoming more sustainable is a smart business move in 2024. In a 2023 Business of Sustainability study, 78% of consumers reported they want to buy products from environmentally-friendly companies, while 80% of those 18-34 are willing to pay more for sustainable products.
There is a price limit on consumers’ desire for sustainability, though. In the 2022 Green Gauge study, 32% of Americans said they take the environment into account all or most of the time when making purchase decisions. However, 53% also said that sustainable alternatives to everyday products cost too much.
This can leave business owners in a bit of a tricky place. While consumers want to spend their money with companies that are conscious of their environmental impact, they aren’t necessarily willing to have those costs passed on to them.
The good news is, there are some easy changes that companies can make to shrink their environmental impact without blowing up their budget—in fact, they can actually save you money in the long run. Here are three ways that you can cut costs while you’re going green.
1. Eliminate waste.
Reducing waste is one of the easiest no-brainer adjustments that a business can make when they’re identifying ways to operate more sustainably. It’s pure common sense: the fewer resources you use, the less you’ll end up paying for those resources on a regular basis.
The question for many isn’t whether they should cut waste but how to identify the main sources of waste and the steps they should take to adjust their operations and waste less. Making things more complicated, the cause of waste and the proper steps to address it will vary depending on the type of business you run and your current operations and processes.
Because of this, it’s often best to start by tracking your current use. Monitor how much trash your organization throws away within each area of your business, along with your overall utility and resource usage. There are free tools that you can use to help with this, such as the online Energy Star Portfolio Manager.
While some of the specific steps and most impactful changes will be different for each business, there are some common sources of waste that can be easily addressed with small changes, such as:
- Turn off lights and devices overnight, or in spaces that aren’t in use. Data from the American Council for an Energy-Efficient Economy shows that up to 43% of energy used by office buildings goes toward lighting. That’s a worthwhile expense when there are people working, but if there is no one in the building, that’s energy you don’t need to use (and money you don’t need to spend on it).
- Upgrade to smart, programmable thermostats. Heating and cooling are another significant energy expense that many businesses spend more on than is necessary. Switching to smart thermostats allows the system to automatically adjust to changes in the outside temperature, or to program the HVAC system based around your operating hours.
- Replace disposable supplies with longer-lasting or reusable versions. For example, if you currently use paper cups, plastic straws, and plastic silverware in your break room or employee cafeteria, consider upgrading to permanent versions that employees can wash and reuse. In a similar vein, if you currently have a single-cup pod coffee maker, change to a regular drip machine with a reusable filter. While the more durable version of items will cost more up-front, you’ll save money in the long run by not needing to replenish those supplies as often, while at the same time cutting down on the waste your team produces.
- Consider hybrid and remote work for roles that can be done out of the workplace. There are multiple ways that remote work saves money and reduces a company’s environmental impact. For one thing, you can use less energy with fewer people working in the building, or potentially even downgrade the size of your office space. It also cuts out the costs of commuting and the fossil fuels used in the process.
2. Go paperless as much as possible.
Paper and ink might seem like relatively small expenses compared to the other things that go into running a business. Those small costs can add up. Research shows that the average company spends up to 3% of their total revenue on document output, for an average expense of $1,200 per year per employee. Even worse, roughly 17% of those printed documents are wasted.
Many of these documents never need to exist in a physical form thanks to the digital file storage and sharing options available for modern businesses. Evaluate your current printer use and identify which things your employees are currently printing that are redundant or outdated, as well as any reports, records, or other documents that could be just as easily saved and distributed on a drive rather than in print.
This has benefits beyond cost-savings and a lower environmental impact, too. Digital versions of files are often more accessible for your team, especially if you utilize any remote or hybrid workers who aren’t in the physical office on a regular basis. Reducing how much you print can also help keep your office less cluttered and streamline your filing and document storage systems.
Along with internal printing, look for ways you can go paperless in customer and client interactions. For instance, you can send digital estimates, invoices, bills, and receipts instead of printed copies, or utilize smart contracts in place of physical versions. This won’t just save you the costs and resources associated with printing, but also the need to send information, contracts, and other documents through the mail. Customers will appreciate at least being given the option, and for many it’s easier to keep track of receipts and other documents when they’re stored online.
3. Invest in energy-efficient appliances and renewable energy sources.
Upgrading equipment can be a large up-front expense, but when you switch to more efficient, lower-energy versions of that equipment, you can ultimately save money in the long run while lessening your impact on the environment.
The most affordable place to start upgrading equipment is with the things you need to replace on a regular basis, anyway: your office or business lights. Energy Star rated LED bulbs use 75% less energy and last up to 25 times longer than typical incandescent lighting. They’re also 80% more efficient than fluorescent bulbs, while providing a stronger and more consistent output.
For businesses that use company cars, delivery trucks, or other vehicles, consider switching to hybrid or electric vehicles as you replace the older cars in your fleet. While there are still ongoing costs for EV vehicles, a 2020 Consumer Reports study showed that EV drivers spend roughly 60% less each year on fuel, even accounting for the increase in electricity use from charging them.
Finally, consider whether you can produce some of your own energy from renewable sources. Installing solar panels can reduce your fossil fuel use while defraying electricity costs. Many states offer tax rebates or other incentives to businesses that install solar energy systems, which can help to reduce the expense of the initial installation.
The bottom line is that, the less energy and fewer fossil fuels you use in your business, the more sustainable it will be—and the more affordable it will be to run. Whatever equipment or energy needs your company has, research what options exist that could allow you to do business more efficiently.
