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Why is it important to build a sustainable business? According to Alibaba's 2023 Sustainability Trends Report, 73% of consumers across 14 markets in Europe, Asia and the Middle East want to live a more sustainable life. The 2023 Global Consumer Insights Pulse Survey suggests that 70% of respondents are willing to pay “somewhat or significantly” more for sustainably produced goods.
Adhering to sustainability principles not only benefits the environment and local economies, it also meets new customer needs and has a positive impact on your brand's reputation. Let's look at some practical steps you can implement into your business strategy to promote environmentally conscious business.
1. Increase product transparency
Take every opportunity to highlight the sustainable qualities of the products you make, promote and sell. Simply including the words “natural” or “eco-friendly” is no longer enough to make your product stand out. Instead of relying heavily on these words in your descriptions, be sure to explain the steps taken to achieve “eco-friendly” status in each case.
Conscious buyers appreciate details such as a breakdown of the raw materials used to create your pottery glaze. Sharing information honestly and thoughtfully like this strengthens the foundation of your marketing strategy and prevents your brand from falling into emotive yet elusive slogans. We require sellers to provide detailed product descriptions that help customers make an informed decision. In fact, these descriptions are the key to joining our platform.
Related: Top 3 Sustainable Business Practices for Entrepreneurs
2. Building sustainable supplier partnerships
Your suppliers are often seen as an extension of your brand, so it's important to partner with vendors who are like-minded about your company's environmental values. With indirect emissions making up more than 70% of a company's carbon footprint, 44% of companies have recently begun to require their business partners to meet certain sustainability standards. To further encourage your suppliers to adhere to the sustainable practices that are important to you, you may want to consider implementing incentives or clear rating systems.
If your business is seasonal, prioritizing locally available products (fruit, flowers, or something else entirely) will reduce the need for long-distance shipping, further minimizing your environmental impact, and helping to provide a fresher, higher-quality product that will improve your overall reputation in the community.
Related: Millennials want transparency and social impact. What are you doing to build a millennial-friendly brand?
3. Introduce recyclable packaging
Recycling and reducing single-use packaging have long been key differentiators of sustainable brands, and research shows that consumers are following suit, with 54% asking companies to prioritize eco-friendly packaging and 57% supporting minimizing packaging to reduce waste.
Changing the way you package your products can significantly reduce your brand's negative environmental impact. Consider the eco-friendly options available in your industry: florists can use kraft paper instead of cellophane for their arrangements, and food delivery services can switch to compostable or reusable containers.
4. Incorporate waste reduction initiatives
Minimizing waste doesn't have to be a tedious and costly task for your brand and partners. Let's think of smart ways to create mutually beneficial scenarios where environmental protection can align with corporate interests.
One great example from us is one retailer that produces soy candles and has recently introduced an eco-friendly offer. Their candles are sold in recycled glass and once the candle has burned out, the customer can return the empty candle “holder” and receive a discount on their next purchase. In this way, the retailer reduces waste and creates an incentive for customers to return.
Related: Need more green for your green business? Here are some smart crowdfunding solutions.
5. Adjust production to meet demand
One of the main reasons why companies are almost inevitably unsustainable is because they often prioritize higher production volumes, as large factories cannot reduce production without incurring losses. In this respect, local brands have a very strong advantage, as they can adjust production to actual customer demand.
In an age of overconsumption, it is refreshing (and of course environmentally friendly) to be a brand that encourages its customers to buy according to their needs and capabilities, rather than indulging in excess. In this regard, it is important for companies to keep track of the initiatives they support. A poor choice of campaigns and collaborations can lead to conflicts between the mission they communicate and their actions.
Related: How to harness the power of sustainability for your small business to increase profits and capital
6. Cultivate a culture of sustainability
It remains important to practice mindfulness and act on sustainability values. Reinforce the culture from within: consider encouraging eco-conscious purchasing and encouraging eco-friendly habits within your team. Think bigger: look for ways to offer mental health support to employees and ensure their human rights and freedoms are respected.
In summary, a sustainable business strives for lean production cycles, works with suppliers who share a green agenda, and provides transparent information at every stage of the process.
