By assessing your business’s environmental and social practices, you can uncover ways to minimize your ecological footprint, enhance resource efficiency, and strengthen your commitment to your community.

When shopping, today’s consumers are increasingly prioritizing businesses that align with their values, especially those committed to environmental protection and fair labor practices. For example, according to a PwC survey, more than 80 percent are willing to pay more for products that are sustainably sourced or produced, with some open to spending nearly an extra 10 percent in total.

To meet these growing expectations, more and more companies are turning to sustainability audits that can provide a clear road map for reducing their environmental impact and enhancing their social responsibility. In turn, they may not only boost their positive contributions to the world but also improve their bottom line, such as by growing their client base and cutting certain operating costs. If you’re looking to do the same, use the tips in this guide to understand the basics of what such an audit may entail.

A checkup for your company

First and foremost, what exactly is business sustainability? According to Harvard Business School, it’s “doing business without negatively impacting the environment, community, or society as a whole.” This can be put into practice in any number of ways, including by lessening your consumption of energy and other natural resources, creating less waste, adopting equitable hiring and employee-management programs, and positively contributing to your local and greater community. Auditing your company’s sustainability enables you to identify how you can improve in these areas, offering numerous advantages. For instance, by pinpointing opportunities to conserve resources and energy, you may be able to optimize your business’s operations and minimize its carbon footprint. Likewise, an audit may allow you to find ways to demonstrate your commitment to being eco-friendly, which could better attract environmentally conscious consumers and foster a happier and more engaged workforce. In these ways and more, becoming more sustainable can make your organization more adaptable, robust, and profitable for the long haul.

Key components

A thorough sustainability audit should delve into several essential aspects of your enterprise, but here are just two critical areas worth starting with. In addition to the steps that follow, consider consulting with a legal representative to make sure that you’re in full compliance with any relevant laws and regulations.

Environmental
Naturally, you’ll want to evaluate the overall impact of your company on the environment, including your energy-consumption patterns and waste-management practices. For example, examine the different stages of your products’ life cycles, including the raw materials and energy used to produce and package them and the means by which they’re delivered. Even just a few tweaks to these processes could greatly reduce the amount of harmful chemicals and waste you produce. Additionally, review your supply chain to assess whether your vendors use eco-friendly materials and employ energy-efficient practices; if not, it may be worth switching to ones who do. While this may mean taking on higher costs, the benefits will be far greater in the long run.

Social
Equally important as your environmental impact is your social responsibility, both inside and outside your walls. Regarding your internal practices, evaluate your workplace culture to ensure that you are fostering a positive, inclusive, and respectful environment for everyone and that the pay and benefits you provide meet industry standards. Beyond your company, explore your community involvement, philanthropic initiatives, and support for local businesses, especially ones you’re in partnership with. And don’t forget to consider your effect on your clients, paying attention to factors like customer satisfaction and data privacy.

How to get started

To conduct your audit, you may want to hire a sustainability consultant, who can assist you in assessing these and other areas and finding solutions for improvement, whether that involves investing in renewable energy or launching beneficial employee training programs. Or as another option, you can create an internal green team to take on the tasks of evaluating your practices, setting goals, and tracking your progress, being sure to recruit across departments to ensure a diverse perspective and greater buy-in.

If you go this route, you’ll want to have them start by collecting and analyzing data like your company’s energy consumption and employee feedback. Based on their findings, they can then chart a path for making improvements, establishing SMART (specific, measurable, achievable, relevant, and time bound) goals and developing a comprehensive action plan that includes specific steps needed to obtain each one. For example, one objective could be to reduce your company’s energy usage by 15 percent within twelve months, using energy consumption tracking software and monthly meter readings to help monitor your overall progress.

As part of this process, your team should clearly indicate timelines, assign responsibilities, and identify necessary resources for reaching your goals. To maximize success, ensure that they provide regular updates not just to you but also to all your employees, encouraging outside ideas via a suggestion box or online platform. Further, it may be worth celebrating milestones and achievements—perhaps by hosting a party featuring locally grown or produced food, outdoor games, and party decorations made with recycled materials— to maintain momentum and reinforce a culture of sustainability throughout your organization.

A sustainability audit is most efficient when it’s an ongoing process, not a one-time event. By regularly assessing your societal and environmental impact and making improvements, you can build a stronger, more enduring business while also contributing to a better planet.

TAKE ACTION:
Recruit employee volunteers to work toward your company’s green and social initiatives.