There will be a shift in focus from price to quality when purchasing goods. In other words, buy well and buy once, even if it costs a little more in the short-term.
Business CEOs are critical. At a time when trust in all institutions is at an all time low, we lean on those closest to us. For workers it's the CEOs of the organisations they work for.
It's good practice to understand how sustainable one's own business and supply chain is, and it can also become part of a business' brand story, aiding its market positioning.
Changes in major institutions' procurement practices means government and council agencies and business are now moving from lowest cost models to criteria that integrate a range of sustainability attributes.
Past practices have forced businesses to pitch lowest cost options, resulting in quality issues and greater environmental damage. Just look at the stressed construction or agriculture sectors to see how lowest cost models play out. This shift in procurement means businesses can now invest in and promote better low carbon and resource efficient solutions.
The low carbon money is coming. The government's $100 million New Zealand Green Investment Finance will be a commercially focused investment company that will invest with business to reduce emissions. There are a growing number of private investors looking to invest in socially or environmentally responsive firms.
Meanwhile, mainstream investment firms are requiring evidence of good governance practice with a clear understanding of risks around environmental and social impacts before they invest.
The question is, how do we support the backbone of the Kiwi economy – our time-poor and often cash-strapped SMEs? It's neither fair nor feasible for the lion's share of the responsibility to rest with them.
SMEs have an important role to play in helping New Zealand achieve its net zero goal because they comprise the majority of our business base.
The beauty of these smaller enterprises is that they can pivot quickly. They can also innovate and create the new business models which are desperately needed in this future economy. If we get this right our future economy is sorted – and so is the planet. Critical steps for SMEs are:
• Keep up! In a time of massive disruption, business needs to stay ahead of the issues racing at them – or they will fail.
• Get comfortable with technology – or employ young people who are!
• Build a new set of skills - increase your businesses capability to adapt.
• Know your suppliers well. Knowing where the carbon hotspots lie will mean you know your risk areas. This will give you time to work with suppliers to transition to low carbon, resource efficient alternatives.
• Know your customers better – know what they want from you in terms of meeting their growing expectations. And let them know more about you. If they don't trust you, you might need to look at independent certifications like Enviro-Mark's carboNZero.
• Join networks who provide good connections, capability building and pragmatic guidance on the immediate actions business should be taking.
The time for business owners to act is now – to future proof their own businesses and the planet, and to leave a positive legacy for future generations.
- Rachel Brown is the CEO of Sustainable Business Network.
