Written by: Aleksandr Iurev, Executive Contributor
Executive Contributors at Brainz Magazine are handpicked and invited to contribute because of their knowledge and valuable insight within their area of expertise.
As COVID-19 recedes into the background, the issue of climate change has returned to the forefront for both government leaders and the business community. The reason is very clear and simple changes in the Earth’s climate are having a strong impact on every aspect of our world.
Tech entrepreneurs must be aware of this when formulating business strategies. Making your business more sustainable is important as ever before. Everyone must do their part to alleviate the climate crisis, and also protect your corporate brand.
Companies that don’t take the issue of sustainability seriously risk losing the loyalty of the general public, which increasingly is aware and concerned about environmental issues, especially among those under 35 years of age.
Gartner’s 2020 Future of Supply Chain Survey showed that 82% of companies intend to invest in ethical sourcing because “it is the right thing to do”. Also, a survey of 282 startups in Europe by TechFounders found that 89% believe in sustainability and are “highly intrinsically motivated” to do their part for the environment.
Why is sustainability important in business?
We live in a business world that prioritizes mass production and conquering new markets in order to secure maximum profits. But this model is no longer sustainable.
According to the World Bank, the global community generates about 4 million tons of plastic and other solid waste each day, which is 10 times more than a century ago. The U.S. leads the world in the garbage, producing 750,000 tons each day, an annual total of about 270 million tons.
According to the report “New Climate Economy”, 95% of plastic packaging is thrown out after first use, and microplastics can be found in over 100 aquatic species. Microplastics are dangerous to marine life because they’re easily ingested and then end up in seafood, and in turn, end up in humans.
To thrive in today’s world, your business can no longer be just about profits. Businesses must become part of the solution, by cutting down on emissions and waste, and contributing to a cleaner and better planet.
Sustainability is “good for humanity but better for business,” said New York University professor of sustainability, Jeffrey Hollender, who is also co-founder and former CEO of the sustainable consumer product company, Seventh Generation. “Sustainability will improve your financial performance and that's what people don't understand.”
Yet, what is “sustainability” in the context of a tech startup, such as a company that has an online sales platform? After you launch your mobile app store, you should think about what exactly you’re selling and its ‘green’ credentials.
Let's take clothing items, for example. Are they sustainably sourced, and made with the help of renewable energy? Are they ethically sourced with no violation of the rights of workers in far-off lands?
Greening the supply chain
Next, is your company making efforts to be 'green' and carbon neutral in its entire operations? The supply chain is one area where you can do a lot. Sourcing goods locally cuts down on the carbon footprint of the items produced and sold on your platform.
Tech startups, however, must be careful not to make claims that can’t be substantiated or are outright false. This is known as ‘greenwashing’ and it carries a risk to your reputation. Reputation management is about establishing a good image. The general public views sustainability as a plus and companies with ‘green’ values are eager to exhibit this. ‘Going green’ shows the world you care about more than just making money.
Clearly, becoming more sustainable can improve a tech business’ chances of winning and retaining customers. Yet there are many other benefits. For example, employees are attracted to businesses with ‘green’ credentials. In the UK, 34% of millennials won’t work for a company that’s harming the natural world
Trying to reduce business costs while ‘going green’ will force you to be more innovative, which of course can help propel your company to the next level. A truly sustainable business should adhere to the triple bottom line Profits, People, and the Planet.
A sustainable business earns profits by being socially responsible and protecting our planet’s resources. Becoming more sustainable may not be easy at first, but the challenge is very much worth the time and effort.
Aleksandr Iurev, Executive Contributor Brainz Magazine
Aleksandr Iurev is a serial entrepreneur, with many years of experience in launching startups. His most recent is Pocketfied, which will radically disrupt the mobile app development industry with its highly innovative technology and service. Overall, Mr. Iurev has 20 years of experience in the IT sector, as well as in DevOps, and Information Security. He cut his teeth in Tech working in IT security for the largest banks in Russia, as well as for top IT companies. That experience protecting clients from hacker attacks is one reason why he attaches top priority to building secure systems so that users can be certain they're protected.
