Grasping the sustainability opportunity

IAIN BOYD, SENIOR CONSULTANT AND CARBON & NET ZERO WORKSTREAM LEAD, SAC CONSULTING

Businesses must deal with three main pressure points - from policy, investors and consumers. Consumers are increasingly aware of their carbon footprint and the environmental impact their choices have. The Office of National Statistics’ 2024 Survey on public and business attitudes toward climate change found 57% of adults consider climate change an important issue, and 76% have made lifestyle changes to address it.

This rise in carbon-aware consumerism presents an opportunity for businesses to both promote and enhance their sustainability efforts. By aligning with consumer values and taking meaningful action, businesses can not only contribute to a more sustainable future but also gain a competitive advantage in an increasingly eco-conscious marketplace.

While consumer intent does not always translate into action, sustainability is becoming an increasingly important factor in consumer behaviour. Those that can afford to are content paying a premium for ‘sustainable’ products. While health and cost remain the top considerations for food choices, environmental impact is right behind them, and rising.

Conducting carbon footprint assessments is a crucial first step in understanding a company’s overall environmental impact and identifying areas for improvement. It is also important to acknowledge that every farm, business and sector is different, and interventions need to be tailored to individual activities and enterprises.

Many businesses undertake carbon audits, and this presents a major opportunity to dive into the results and explore the biggest opportunities for improvement. For instance, in agriculture, adopting regenerative farming practices can sequester carbon, improve soil health and reduce emissions from fertilisers and machinery, providing multiple benefits for the planet and your business.

While many companies already report on their direct (scope 1 and 2) emissions and take steps to minimise them, scope 3 emissions (which includes indirect emissions from supply chain and product life cycles) remain a significant challenge. Addressing these emissions requires greater co-operation and accountability across the supply chain, as well as efforts to educate both employees and consumers about climate impact.

As consumer scrutiny over sustainability claims intensifies, businesses must ensure their environmental efforts are both genuine and impactful. Greenwashing (making unsubstantiated or misleading environmental claims) can damage credibility and consumer trust. This has seen the rise of ‘greenhushing’, where businesses downplay or don’t promote their sustainability efforts to avoid scrutiny.

Rather than fearing scrutiny, businesses should embrace transparency and ensure their sustainability initiatives are backed by credible, science-based evidence and verifiable real-world outcomes.

Transparency and collaboration

Clear communication about the environmental impact of products throughout their life cycle is crucial. While reducing emissions within a company’s value chain (known as ‘insetting’) is a priority, some emissions are unavoidable. In such cases, credible carbon offsetting projects, such as reforestation and peatland restoration, can help balance out remaining emissions. However, these efforts must be legitimate and verifiable to avoid consumer scepticism.

Businesses do not have to navigate this challenge alone. Collaboration with like-minded organisations can amplify impact and create shared solutions. By working together, companies can accelerate progress toward sustainability goals and drive industry-wide changes.

Taking climate action is not only a moral imperative, but also a business opportunity. Companies that integrate sustainability into their core operations can:

• Enhance their reputation and brand loyalty

• Improve efficiency and reduce costs

• Meet regulatory and trade requirements

• Future-proof their operations against environmental and policy shifts

The pressure to adopt sustainable practices is driven by investors, global standards, trade policies, governmental and industry regulations. Progressive companies are already setting ambitious net-zero targets and tackling scope 3 emissions. These efforts benefit all stakeholders, from farmers and manufacturers to retailers and consumers.

The role of policy and the risks of inaction

Government policies and industry partnerships play a critical role in supporting businesses in their sustainability journeys. The growing policy trend favours low-carbon and green business practices, creating incentives for companies to adopt and promote carbon-conscious strategies.

As sustainability climbs the agenda for consumers, it has also significantly climbed it for policymakers and investors. Policymakers have built sustainability targets into countries’ legislation to ensure global targets are hit, while investors have pushed for companies to build security and resilience to climate change to protect their assets. These three pressure points are forcing businesses big and small into action. The very worst thing a business can do in this atmosphere of change, is nothing.

The shift toward carbon-aware consumption is not a fleeting trend but a long-term transformation. In an era of increasing climate consciousness, taking bold and credible action on carbon reduction is not just ethical and a good deal for the planet, it is a good deal for business.

Leading by example

INNOCENT: BCorp certified for social and environmental transparency, they have a renewable powered factory and work with farmers to ensure their ingredients are good for people and the planet.

DIAGEO: The global drinks company is proactively tackling scope 3 emissions with regenerative agriculture programmes and direct collaboration with farmers to benefit biodiversity, water, soil health and carbon.

PATAGONIA: From using sustainable materials, promoting the circular economy and raising awareness of environmental issues, the outdoor clothing brand is living its values.

Get in touch: iain.boyd@sac.co.uk