How to create a sustainability plan for your business
Last updated: January 31, 2024
From the rainforests of the Amazon to the corporate boardrooms of Silicon Valley, the call for sustainability is louder than ever. Now the world is looking toward businesses, both large and small, to step up and play their part in building a sustainable future. The pathway to integrating sustainability into business isn’t always clear, however. That's where a well-crafted sustainability plan comes into play.
From understanding the pillars of sustainability and setting precise goals to executing your plan, we’ll guide you through what you need to know. That way, you can create a sustainability plan that makes an impact.
What is a sustainability plan?
A sustainability plan is a roadmap that guides businesses to integrate economic, social, and governance (ESG) considerations into their operations. Those pillars contribute to lasting and powerful corporate sustainability.
Having a plan empowers businesses to be proactive, support the long-term viability of the organization, and contribute to a better environment. A sustainability plan includes policies, procedures, actions, and metrics that align the business’s objectives with sustainable practices.
What are the benefits of having a sustainability plan?
Wondering what you can expect when you sharpen your focus on sustainability? Take a closer look at some of the reasons why having a sustainability plan is a win-win—for our world and for the businesses that operate in it.
Fosters innovation
By aiming to reduce environmental impact, organizations often find more-efficient ways to operate. Then they experience organizational shifts that promote innovation. This can lead to the development of new, sustainable products or services that set them apart from the competition. It can also free up time and resources for other aspects of the business.
Reduces operational costs
Sustainability and cost-efficiency often go hand in hand. Energy-efficient appliances and machinery consume less power. Similarly, waste reduction initiatives can cut disposal costs. You may find many various ways to help your organization keep costs down. Research from McKinsey found that by decreasing resource costs, a company can increase its operating profits by up to 60%.
Enhances brand reputation
Consumers are becoming increasingly conscious of environmental issues. Businesses that demonstrate a commitment to sustainability can significantly enhance their brand reputation and boost their bottom line. According to the 2020 McKinsey US consumer sentiment survey, more than 60%-70% of respondents said they’d pay more for a product with sustainable packaging. This shows that consumers care about brands that make these efforts, even if it means paying a premium.
Increases customer loyalty
Sustainability can be a powerful driver for customer loyalty. Many consumers today prefer to purchase from companies that align with their values. By showcasing your sustainability efforts, you can attract and retain a loyal customer base that values your commitment to making and supporting change. A report from the Capgemini Research Institute shows that 52% of consumers say they share an emotional connection with products or organizations that they regard as sustainable.
Attracts top talent
Employees increasingly seek out employers that demonstrate social and environmental responsibility. That’s why a robust sustainability plan can be a powerful tool for attracting and retaining top talent. Research from Adobe shows that sustainability initiatives are top of mind for employees, and 43% of people believe that launching sustainability practices will improve workplace culture.
Boosts investor confidence
Investors are also recognizing the value of sustainability, with many prioritizing investments in companies that demonstrate a commitment to environmental and social responsibility. Research from PwC shows that almost 80% of investors say ESG played an important role in their investment decision-making.
As demand for sustainable solutions and emission-reduction efforts increases, organizations across the globe will continue to face challenges. With sustainability insights, Uber for Business clients have a clearer picture of their company’s progress.
Before you begin: key components of sustainability plans for business
Putting together a business sustainability plan requires strategic thought, collaboration, and commitment. The concepts below can help businesses lay a solid foundation for their sustainability efforts.
Identify areas for sustainability
When you create your corporate sustainability plan, it’s important to consider each of the 3 pillars: environmental, social, and governance. Each has unique elements to keep in mind.
Environmental
Environmental sustainability is centered on preserving the planet's natural resources and minimizing the environmental footprint of our activities. In the business world, the drive toward environmental sustainability comes from the recognition that economic activities can have significant environmental consequences, from resource depletion to climate change.
By implementing environmentally sustainable practices, businesses can help mitigate these impacts. They may, for example, be able to contribute to preserving biodiversity, maintaining ecological balance, and helping future generations inherit a healthy planet.
Social
Social sustainability focuses on human rights, labor standards, and social interaction. This pillar recognizes that businesses have a responsibility to respect and uphold good values when considering the people whom they affect and serve. This includes treating workers fairly, ensuring safe and inclusive workplaces, promoting diversity and inclusion, and contributing positively to the community.
Companies can use their influence to promote social progress, such as advocating for human rights or fighting discrimination. When they do this, businesses contribute to creating an equitable society for everyone.
Governance
Governance plays a pivotal role in moving an organization toward its sustainability goals. It outlines the structure, rules, and practices that make sure the organization's sustainability actions happen effectively and transparently. Good governance provides the backbone that supports a company’s sustainability efforts. It’s crucial for risk management, strategic decision-making, and accountability.
Here’s a breakdown of what governance will typically look like:
Sustainability oversight
This involves the board of directors or top management keeping an eye on sustainability issues. They’re responsible for setting sustainability policies, ensuring compliance, and integrating sustainability into the company’s strategy.
Sustainability reporting
Good governance allows transparency in a company’s sustainability performance. This might involve regular sustainability reporting, where a company discloses its environmental, social, and governance impacts to stakeholders.
Stakeholder engagement
A wide range of voices should be heard and considered when making decisions about sustainability. Regular consultations with stakeholders like employees, customers, local communities, and shareholders can make all the difference here.
Ethics and compliance
Companies with strong governance structures have clear codes of conduct and mechanisms for reporting and addressing unethical behavior. This is key to keeping accountability at the forefront of your efforts.
How to create a sustainability plan
Do you want to make progress on sustainability efforts and don’t know where to start? Use this sustainability plan template to drive your organization’s success.
1. Set goals and objectives
Once you identify areas for improvement, it’s time to set clear, specific, and measurable sustainability goals and objectives. If, for example, a company wants to reduce its carbon footprint, its objective could be something like this: “Reduce carbon emissions by 25% over the next 5 years.”
To achieve it, the company could set several smaller, more immediate goals, like to transition to renewable energy sources, to improve energy efficiency in operations, or to invest in carbon offset projects. For social sustainability efforts, an organization might set a goal to donate a certain percentage of annual profits to local community initiatives or to improve workforce diversity and inclusivity.
Remember to tie these objectives to key performance indicators (KPIs). This could include data like kilowatt-hours of energy used, tons of waste produced, or number of women and minorities in leadership positions. Measure what matters in order to focus your organization on making progress.
Also, be sure your objectives align with the larger business strategy. This alignment will prevent sustainability from becoming an afterthought and embed it as a component of your organization’s success.
2. Formulate a communication strategy
A sustainability action plan doesn’t happen in a vacuum. Effective communication with all stakeholders is important. This step involves identifying whom you need to connect with, selecting appropriate communication channels, and crafting messages that correctly convey your choices and changes.
Stakeholders may include employees, customers, suppliers, investors, and the community at large. Each group may require a different communication strategy. For example, you might inform employees through internal newsletters, while you might reach customers through more public channels.
In your communications, highlight the objectives of your sustainability plan, the steps you’re taking to achieve those objectives, and the benefits. Where possible, tell a story. Narratives often resonate more deeply than data, especially when you’re just beginning to track your efforts.
Research from PwC shows that 76% of consumers say they’ll stop buying from companies that treat the environment, their employees, or their community poorly. Don’t risk losing out on business because your organization isn’t communicating its values and efforts.
3. Execute and regularly update
Execution makes your plan come to life and requires active commitment. To implement the sustainability plan, everyone plays a role, whether it’s leadership making strategic decisions or employees turning off lights and computers at the end of the day.
During execution, regular tracking and review of your KPIs is critical. This allows you to measure the progress of your plan and ensure that you’re on track to meet your objectives.
Keep in mind, however, that your sustainability plan should not be rigid. As your business evolves, your plan needs to evolve with it. Whether due to changing business goals, emerging technologies, new scientific findings, changing regulations, or shifts in societal expectations, you’ll likely need to make adjustments over time.
Sustainability plan example: a model to inspire you
Let’s consider a telecommunications company facing challenges like high energy consumption with large data center operations and electronic waste from outdated equipment. The company might set objectives to reduce its energy consumption by 35% and e-waste by 60% over the next 5 years.
3 potential strategies to support these sustainability goals
To meet its objectives, the company could start with one of these strategic initiatives:
Invest in energy-efficient infrastructure: The company could invest in more efficient cooling systems for its data centers or use virtualization technologies to reduce its number of physical servers. Additionally, it could transition to renewable energy sources to power operations.
Implement an e-waste recycling program: The company could start an e-waste recycling program to ensure that all outdated or broken electronic equipment is disposed of responsibly. This could apply to purchases from its customer base and equipment that its employees use.
Promote device longevity: The company could design and build its products to last as long as possible, reducing the need for frequent replacement. This could involve using more durable materials, offering repair services, or creating software updates that keep older models running.
Keeping everyone in the loop
Next, the organization could consider how to get the word out and communicate these initiatives to employees and stakeholders.
The company could also implement resources and tools that support sustainability, then train its staff on energy-efficiency best practices and the importance of sustainability within the organization. This helps to maintain the consistency of its efforts.
When it comes to sharing the plan and being transparent, the company could communicate its commitments and progress toward these sustainability objectives through publishing updates on its website, sustainability reports, and social media posts.
Adapting to the times
The final thing the company needs to keep in mind is that a sustainability plan isn’t something you can set and forget. Instead, it must plan for change.
The organization could establish a review and update process for the sustainability plan. This process would involve reassessing the plan at regular intervals and considering new challenges or opportunities that emerge. This way, the sustainability plan continues to drive the company toward its sustainability goals.
It’s your turn to transform sustainability plans into action
A robust sustainability plan is no longer an extra for businesses—it’s a vital tool to navigate the complex interplay between economic, social, and environmental considerations in modern operations.
Uber for Business can help your organization meet its sustainability goals
By leveraging our platform, you can help reduce your company’s carbon footprint. Here’s a closer look at how this works:
Company-wide emissions reporting: Get clear climate metrics—including estimated total CO₂ emissions, total low-emission trips, and average CO₂ per mile—so that you can measure and share your company’s achievements.
No- and low-emission rides: Uber Green, our electric vehicle (EV) and hybrid ride option, offers no- or low-emission rides, available to your employees in the Uber app.
Greener options for delivery with group orders: Feed company morale while improving delivery efficiency. Group orders are an easy, sustainable choice that grows your impact by requiring fewer trips for delivery.
No matter where you are on your sustainability journey, gathering the right tools and systems to support your efforts can make all the difference. To find out more about how Uber for Business can help you reach your sustainability goals, explore our platform.
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