7 Sustainable Business Practices Every Company Should Implement

Sustainability in business means profitably running a company in a way that positively impacts the environment and community.¹

Adopting sustainable practices in business is not just about implementing eco-friendly practices and acting ethically for the sake of the planet. It can be a great opportunity to increase revenue.

PwC’s 2024 research revealed that 80% of consumers value sustainability in business. Companies that embrace sustainability may see improved customer loyalty and cash flow because consumers are often willing to pay more for products from environmentally responsible brands.²

Read on for more information about why sustainability is important and to discover the top sustainable business practices.

Implementing sustainable or “green” business practices helps companies meet regulation requirements to avoid noncompliance penalties.^{1, 3}

In addition, eco-friendly initiatives can help a business stand out in the labor market, hire the best candidates, and keep them for a long time. IBM’s global research shows that about 70% of employees and job seekers prefer working for companies that prioritize environmental stewardship and sustainability.^{1, 4}

Investors also view sustainable organizations with increasing interest when deciding where to put their money. Today, nearly 80% of investors look at sustainability factors before making investment decisions, up from 20% five years ago.^{1, 5}

With sustainable business practices, an organization can develop eco-friendly products and innovate unique solutions to common environmental challenges. As a result, the brand’s reputation improves and the company becomes more competitive by accessing new markets.^{1, 6}

Business sustainability efforts, such as tracking progress and setting targets, can help measure environmental impact and inform decision-making. This can help companies meet evolving consumer and regulatory expectations.

To integrate more sustainable business practices in their business strategy, organizations can implement the following:

Before making any changes, consider hiring an expert to conduct an energy audit of your offices. This assessment will reveal your energy consumption and business areas or equipment that consume more power than necessary.⁷

You can then consider implementing the following strategies to reduce electricity usage:

• Replace business equipment that over-uses electricity with energy-efficient alternatives⁸
• Switch to renewable energy sources and consider directly generating electricity from clean, renewable sources like Google does^{9, 10}

Waste prevention is one of the most effective techniques for managing business garbage. Organizations can implement it in the following ways:¹¹

• Generate less waste: For example, set your printers to print both sides of a document to save paper
• Reuse products as much as possible: This reduces the amount of waste that ends up in landfills
• Donate: For example, rather than discarding food, restaurants and hotels can donate it to local food banks

If waste prevention in business is impossible, recycling is the next best option.¹¹ When Curbell, a medical device and plastic manufacturer, started recycling its waste, it prevented over 2.2 million pounds of its garbage from going to landfills.¹²

Developing environmentally friendly products revolves around a number of sustainability principles. The most important ones include:¹³

• Use renewable and sustainable materials to reduce waste
• Create durable products to minimize the need for replacements
• Make the products easy to recycle at the end of their life
• Develop products that maximize energy efficiency

When designing an eco-friendly product, evaluate its environmental impact throughout its life cycle, from raw material extraction to production, use and disposal. The assessment can help you identify areas of improvement to minimize environmental harm.¹⁴

Organizations must involve their employees to successfully implement sustainable practices. One way to achieve that is by educating employees about sustainability. Make sure they know what it is, why it is important, and how they can integrate it into their daily business decisions.

Additionally, companies can engage their staff in brainstorming sustainable business practices. Staff on the front lines of operations are often in the best position to see opportunities to meet sustainability goals through tactics such as using recycled materials, sustainable packaging, more efficient processes at different points in the supply chain, and so on. The organization can then recognize or reward those who come up with creative, practical ideas for sustainability initiatives.¹⁵

Emerging technologies are shaping the future of sustainability practices in business.

For instance, organizations can use sustainability management software to track their environmental, social and governance metrics accurately and comply with reporting requirements.¹⁶

Organizations can also use artificial intelligence (AI) to quickly sift through historical sustainability data, such as power consumption, and provide hidden insights on energy efficiency that may not be readily visible to the human eye.¹⁷

However, it's important to note that AI technology itself presents environmental challenges. According to the United Nations Environment Programme, AI data centers consume significant amounts of water and electricity, generate electronic waste, and rely on unsustainably mined minerals, potentially contributing to greenhouse gas emissions. So, the use of AI and other new technologies should be approached with an eye toward potential unintended environmental consequences.¹⁸

Creating corporate sustainability policies shows commitment to a sustainable business strategy, encompassing environmental, social, and economic responsibility. The policies should cover these key areas:¹⁹

• Environmental responsibility: This section can cover guidelines for material sourcing and manufacturing processes to reduce the organization’s waste, water usage, carbon footprint and other negative environmental impacts
• Social responsibility: Corporate social responsibility policies here explain how a company ensures fair employee treatment and outlines how the organization contributes to the community it serves, such as giving back through investment in local public projects
• Economic responsibility: This section includes guidelines for running business operations profitably, ethically and sustainably

After drafting policies for sustainable business practices, corporations must then train and support staff to implement them in daily operations.

According to a 2024 study by the Pew Research Center, electric vehicle (EV) charging stations in the U.S. have more than doubled since 2020.²⁰ For this reason, using EVs in logistics instead of gas-powered vehicles is an increasingly viable solution for organizations that want to reduce greenhouse gas emissions, air pollution, and save money on fuel.⁹

Organizations can also promote sustainable transportation by offering commuter benefits for employees who use public transport. Similarly, they can create a carpool program that reduces commuting costs and carbon emissions.²¹

An alternative solution might be subsidies, such as reimbursing recharging costs for employees who use EVs or hybrids.²²

Implementing sustainable business practices can help modern organizations thrive in today's environmentally conscious marketplace. As we've explored in this article, successful companies are taking a comprehensive approach to sustainability, including optimizing operations, rethinking product design, and actively engaging employees in sustainability initiatives. Through strong corporate sustainability policies, companies are demonstrating their commitment to environmental stewardship while building stronger, more resilient businesses for the future.

If you're ready to lead sustainable business initiatives and drive positive change in your organization, an Online MBA from Seattle University can equip you with the essential skills for success. The values-centered program helps you understand, integrate, and apply sustainable business principles to complex challenges in as few as two and a half years of studying part-time.

The challenging curriculum covers strategic thinking, leadership, problem-solving, communication, and collaboration. You’ll learn from expert faculty how to identify challenges and opportunities and work with your classmates to apply your learning in scenarios based on today's business realities. Seattle U Albers MBA graduates work for top companies in all industries. Reach out to an admissions outreach advisor today to find out how Seattle U can help you create the sustainable leadership career you seek.