Small business forges ahead with sustainability

By Carol Boutin, Fraser Basin Council

In 2007, there were over 357,000 small-and medium-sized enterprises (SMEs) in BC1 with up to 50 employees. Considered individually, SMEs may appear to have little impact on the social, environmental, and economic footprints of society as a whole. However, collectively, and as the fastest growing part of BC’s economy, they have an increasingly important role to play in advancing sustainability.

Vancity and the Fraser Basin Council (FBC) participated in a joint project in 2008 to learn more about what’s needed to further SME leadership in sustainability. They surveyed 331 non-profit and for-profit SMEs, up to 150 employees in size, primarily in the Lower Mainland and southern Vancouver Island, and found that an impressive number, despite their size and perhaps because of their nimbleness, are “walking their talk” on sustainability in creative ways.

Survey results

On a broad strategic level, 78% of respondents said they consider social and environmental factors in their investment and capital allocation decisions, and over half provide some form of environmental or non-polluting products and services in their offerings to customers.

Almost all survey respondents cited one or more initiatives in place in their organizations that reduce their environmental impacts, such as waste reduction and recycling (93%), reduction in greenhouse gas emissions and energy consumption (51%), and water conservation (40%). Specific initiatives undertaken in these areas include:

• measures to minimize waste production
• participating in or operating product take-back programs
• composting
• reducing paper usage
• using more efficient lighting and energy-saving technologies
• implementing energy-efficient retrofits
• promoting efficient water use to employees
• reorganizing delivery logistics
• reducing idling times in vehicles
• purchasing only non-toxic and/or eco-certified products.

When asked what purchasing strategy(ies) they had in place to support positive social and environmental outcomes, respondents indicated an overwhelming preference for both environmentally responsible products and services (such as Fair Trade or recycled products) as well as buying local.

Room to grow

However, less than half of the SMEs surveyed acknowledged involvement in programs that advance social sustainability such as charitable contributions or employee volunteering (45%), programs to train/employ people from “excluded populations” (43%) or accessibility and barrier-free initiatives (29%). Fewer than 19% actually measure their greenhouse gas emissions. And only 20% said they had a Supplier Code of Conduct to ensure all their suppliers met minimum performance standards.

It was also interesting to note that only12% of those surveyed publicly report on their sustainability priorities, practices, and accomplishments. This may be an area where SMEs can use their sustainability accomplishments to gain competitive advantage in the marketplace.

Profiling the survey respondents

Over 65% of the survey respondents had been in business for over six years, suggesting that more mature organizations are better able to contemplate sustainability issues. Organization size varied; however, smaller companies of one to nine employees made up about half of those surveyed. Responses by annual sales or operating budgets were evenly distributed, with some organizations making less than $50,000 annually and a comparable number earning over $5 million.

The SMEs that responded to this survey self-identified as organizations committed to sustainability, so it’s not known how representative they are of SMEs in general. But it was both impressive and encouraging to see the degree to which sustainability strategies and actions are being undertaken in this group. What became clear from the results of the survey is that small-and medium-sized organizations can and do participate in the “greening” of our economy as part of their raison d’être. Properly encouraged and supported, this large group of businesses can have a significant positive impact on the broader economy by embedding sustainability principles and practices in their strategies and operations.

About the FBC

The Fraser Basin Council is a charitable, not-for-profit organization that plays a unique role in advancing long-term social, economic, and environmental well-being in British Columbia, with a geographic focus on the Fraser Basin. The Council is an internationally recognized leader in multi-interest engagement and collaborative problem-solving, using its expertise and networks to build bridges, create synergies, engender trust, and forge partnerships between governments (including First Nations), the private sector, and civil society. FBC priorities include climate change adaptation and mitigation, long-term sustainability planning for communities, advancing sustainability in procurement policies and practices, and ensuring the long-term vitality of Fraser River salmonids and watersheds.

Footnote:

1 BC Statistics, 2008. Establishment Counts by Employee Size, 1998-2007.