Working towards net zero in 2023: making a business sustainable

Climate change is detrimentally affecting the way we live across the globe. Combatting it is no easy feat, but we’ll look at how you can simplify sustainability this World Environment Day. Through developing awareness and adapting supply chain practices, businesses can already take steps towards Australia’s net zero target.

Where does the Australian government stand on sustainability in the workplace?

So, where can employers start on World Environment Day? The Australian government has committed to establishing an independent national environment protection agency – to be known as Environment Protection Australia (EPA). The EPA will provide a set of regulations and guidelines for becoming more sustainable as a business. It is part of Australia’s strategy to reach net zero by 2050. The new agency sets new environmental targets for businesses, and will also establish a data and information body to help deliver outcomes for the environment through monitoring and reporting. The new agency will ensure businesses can continue to thrive and be confident about compliance.

Sustainability in the workplace ideas

With the above in mind, what steps are Australian businesses currently taking to reduce their environmental impact? Let’s look at supply chains. The Woolworths Group’s Sustainability Plan 2025 proposes, among other initiatives, to achieve zero waste to landfill by 2025.

Circular economy models are perhaps the ultimate in sustainable supply chain management. PwC explains that a circular economy model is an alternative to linear ‘take-make-waste’ models, instead maximising a product’s lifecycle and ‘reusing by-products and waste to make new materials or products’. This new model already has political backing: The World Economic Forum says that Europe is planning on transferring to a circular model.

This push towards more sustainable business practices and supply chains, has resulted in a huge increase in green jobs in Australia. Despite this growth in Green managerial level jobs, there is  still  great opportunity for businesses who are looking to take advantage of the renewable energy economy. In order to meet the government's net zero target, more of these roles need to be available much faster.

Greenwashing is a ‘no’ for consumers

Consumers (which also means your employees and potential hires) are becoming increasingly conscious of what’s known as ‘greenwashing’. According to Greenly, ‘Greenwashing is when a company claims to commit to environmentally friendly practices, but doesn’t take any concrete effort to encourage or sustain these practices’. For example, recent findings in an Australian Competition and Consumer Commission (ACCC) report found greenwashing rampant among Australian businesses. 

The ACCC report stated that as more consumers are now using sustainability claims to make purchasing decisions, they need transparent and accurate information about products. The report found that some businesses were overstating their environmental credentials and greenwashing may cost these businesses more time and money than developing more simple sustainable practices. And what happens if customers find out that you’re greenwashing? They believe that there should be strong repercussions such as harsher penalties.

While responding to this might seem like an additional challenge for companies struggling with supply chains and budgets, it’s one that’s a big priority for your employees, candidates and customers alike. The Harvard Business Review discovered that supply chain transparency in particular may help industry leaders to retain employees: companies like Patagonia have low employee turnover and high rates of applications, in part due to its reputation as being environmentally responsible.

Educating your employees on sustainability

The Stanford Social Innovation Review notes the importance of linking: ‘employees’ value and support for sustainability… with daily work and the company’s operations’. The aim, they claim, is to realign the personal values of your employees with the corporate values of your business. One strategy for this is communicating the long-term sustainability interests of your business to your employees, in the form of a blueprint for a sustainable growth.

The Review also found that managers have to make the economic case of sustainability to employees themselves, perhaps by providing presentations on their company’s relationship to the environment, and the challenges that come with this. HSBC found that while just over half of businesses are invested in sustainability training, some employees were worried that sustainability targets may affect their ability to do their job properly.

So, engaging your staff with the reasoning behind your environmental objectives can help them see the practical value in achieving them. It also emphasises helping staff to feel a sense of autonomy about what they can do for the environment. Consider it a form of upskilling – you could either design courses yourself, or outsource this to an agency that specialises in sustainability training.

Educating your managers in sustainability leadership skills can help them to make better informed decisions when it comes to the environmental impact of their teams. Setting them challenges for reaching short-term sustainability goals could help them to develop these skills. 

On World Environment Day – and for the rest of 2023 – employers can start to tackle sustainability in the workplace through a combination of supply chain transformation, and practical education for their employees. While some employees may be initially resistant to changes in their processes for the sake of sustainability, helping them to see the genuine value in these changes is ultimately the way forward.