September 30, 2024
Today MuttuLabbers, sustainability is no longer an option for companies, but a necessity. Small companies, although they may seem limited in resources, have a crucial role to play, as they represent a large part of the industrial fabric and their role is crucial. The challenge is to balance economic considerations with environmental and social commitment.
In this blog, we intend to give some guidelines so that a small cosmetic company can start implementing sustainability strategies in its daily activity.
The first step in creating a sustainability plan is to understand how the company interacts with the environment and society. To do this, it is crucial to conduct an Impact Assessment. This assessment should cover both the life cycle of products or services and the internal operations of the company. What should we pay attention to?
a) Inventory of resources
It is recommended to start with a detailed analysis of the resources consumed by the company, such as energy, water and raw materials. This process is quite complex and takes time, but we recommend going from the inside out, i.e. starting with the resources consumed directly and expanding the circle to the resources consumed by suppliers. Rome was not made in a day and the plan is being built every day, year after year.
b) Carbon footprint and water footprint
After making the inventory, the company must measure its carbon footprint, which includes direct emissions (such as those generated by the consumption of fossil fuels) and indirect emissions (such as those associated with electricity or the supply chain). Also the water footprint, counting the amount of water consumed for processes. You can learn more about these two indicators in our blog(link).
c) Social impact
It is as important to take care of the planet as it is to take care of the communities that live on it. This section should assess how the company's operations affect local communities and the people involved in its value chain. This includes labor conditions, impact on the local economy and possible adverse effects on people's health or well-being.
Once the initial assessment has been conducted, it is necessary to translate those findings into specific objectives. Here it is essential that the objectives are measurable, achievable, and relevant. The SMART (Specific, Measurable, Achievable, Realistic and Time-bound) framework will help us structure these objectives.
Key Performance Indicators (KPIs) are essential to measure progress toward goals. Examples of sustainable KPIs include:
Dividing goals into time horizons allows the company to adjust its strategies based on results. For example, a short-term goal might be to reduce water consumption by 10% over the next year, while a long-term goal might be to achieve carbon neutrality in 10 years.
These targets must be realistic and aligned with the company's capacity. For example, if we have no control over the major contribution of CO2 consumption, it makes no sense to propose a goal of reducing the carbon footprint by 50%. We must set achievable goals and apply principles of continuous improvement.
The perfect plan is useless if we don't follow it. This step seems the simplest, but it is where most companies fail, as commitment to the plan often means incurring additional costs or sacrificing delivery times.
If we are alone in the project or have a reduced number of personnel, we must establish motivation mechanisms to help us maintain the level of commitment to the objectives set.
If the organization is a little larger, we will have to implement a training and awareness plan.
But beyond technical training, it is essential to foster an organizational culture that values sustainability. The company's management must set an example, and all employees must feel part of the effort. Initiatives such as incentives to reduce personal carbon footprint or the use of public transportation can contribute to this end.
And it should always be remembered that sustainability is not limited to the company' s internal operations, but also encompasses suppliers. A sustainable supply chain not only reduces environmental and social impacts, but also protects the company from future risks.
A good practice is to include sustainability criteria in the supplier selection policy. For example, do they use renewable energy sources, do they have emission reduction policies, how do they manage their waste? Certifications such as ISO 14001 (environmental management) or Fair Trade (fair trade) can be useful in selecting partners committed to sustainability.
Once the objectives have been defined, the personnel trained and the supply chain optimized, the next step is the implementation of sustainable practices in the company's daily operations. To begin with, it is best to focus on 3 key points:
1. Energy
Reducing energy consumption is one of the most important aspects of sustainability. Recommended strategies include:
2. Waste
Implement an integrated waste management program based on the 3Rs (reduce, reuse and refine). In our case it would be to try to reduce waste in production, reuse materials whenever possible and use recyclable or compostable materials when they are single-use.
3. Water
Try to consume as little water as possible, both for production and washing operations. Also try to make washing as efficient as possible by removing greasy and waxy parts physically before applying detergents.
Implementing sustainability strategies is costly and not everyone does it. That is why it is important that we can communicate our efforts in a transparent manner. It is just as important to communicate successes as it is to communicate challenges, because future successes will come from the challenges.
More and more companies are choosing to publish annual sustainability reports. These reports not only detail the company's achievements in environmental and social terms, but also provide customers and suppliers with a clear view of the company's commitment. The most widely used reporting framework is the GRI (Global Reporting Initiative), which provides a global standard for the disclosure of sustainable information.
When integrating this information into the company's marketing, it is essential to avoid greenwashing, which occurs when a company exaggerates its sustainability efforts to gain a competitive advantage. Any claims must be supported by verifiable facts and be commensurate with the scale of the achievements.
Small changes are important.
Sustainability is a dynamic and constantly evolving process. Therefore, it is important to regularly review and adjust the sustainability plan. Sustainability, like quality, are abstract concepts, ideas to which we have to aspire, improving our practices day by day. The awareness that we are doing well, but that we can always do a little better is the key to success.
For small businesses, implementing a sustainability plan can seem like a daunting challenge, but the medium- and long-term benefits in terms of cost savings and improved reputation outweigh the initial difficulties.
The important thing is to start, albeit modestly, and gradually move towards a more sustainable world for all.
Find out more about Celia Campos, Technical Director and co-founder of MuttuLab, author of this article.
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