Mid-sized companies can grow and save money by adopting sustainability as a core business strategy. Here’s why it matters and how to get started:

• Consumers care: 60% of buyers consider a company’s climate policies, and 80% prefer businesses that act responsibly.

• Investors demand it: 89% of investors prioritize ESG (Environmental, Social, and Governance) factors, and 78% are willing to sacrifice short-term profits for sustainability-focused businesses.

• Cost savings and growth: Sustainable practices can cut costs by 5-10%, boost brand value by 15-30%, and attract talent - 64% of millennials won’t work for companies without clear CSR policies.

Quick Tips to Begin:

1. Focus on key areas: Energy use, supply chain, and waste reduction.

2. Set measurable goals: Track progress with digital tools and regular reviews.

3. Engage employees: Offer training, incentives, and recognition for sustainability efforts.

4. Leverage green technologies: Use AI, renewable energy, and circular business models to reduce waste and improve efficiency.

Sustainability isn’t just good for the planet - it’s a smart way for mid-sized businesses to cut costs, attract customers, and grow revenue.

How to create and implement a successful sustainability strategy

Building a Right-Sized Sustainability Plan

For mid-sized companies, making a meaningful impact often means focusing on the areas that matter most. A recent study reveals that 89% of small and medium enterprises are already taking steps toward sustainability, which underscores the importance of creating a plan that transforms these efforts into measurable, strategic outcomes [2].

Finding Key Impact Areas

To maximize both environmental and financial benefits, it’s essential to zero in on high-impact areas. A double-materiality assessment can help identify the most pressing environmental and social issues [1]. Additionally, mapping your supply chain is key to understanding product origins and spotting risks - especially since SMEs contribute to 63% of all CO2 emissions from businesses [2].

Creating Clear, Trackable Goals

Consumers are increasingly willing to pay up to 25% more for products that align with sustainability values [3]. This makes setting clear, actionable goals not just an environmental priority but a business advantage. Here’s how to get started:

• Define baseline metrics: Measure emissions, resource consumption, and waste levels.

• Set specific targets: For example, aim to cut energy consumption by 30% by 2027.

• Implement tracking systems: Use tools to measure progress effectively.

• Review progress quarterly: Regular check-ins ensure you stay on track.

Getting Everyone Involved

Achieving sustainability goals requires a collective effort. Engaging employees at all levels can make the difference between plans that sit on paper and those that drive real change. Research shows that 69% of employed adults want their companies to invest in sustainability, and 74% feel more fulfilled when they can contribute to environmental efforts [4][6].

• Education and Training: Offer sustainability-focused training programs. Interestingly, 80% of C-suite leaders say employees play a key role in shaping sustainability strategies [4].

• Empowerment Through Action: Provide opportunities for employees to make a direct impact. For example, IBM’s teams initiated 2,200 energy conservation projects across 341 locations, saving $37.4 million and avoiding the use of 325,500 megawatt-hours of electricity [5].

• Recognition and Rewards: Celebrate achievements. Millennials, in particular, are 83% more loyal to companies that actively support social and environmental causes [6].

Putting Sustainability into Practice

Taking steps toward sustainability isn't just good for the planet - it can also save money and boost a company's competitive edge. Here's how mid-sized businesses can make meaningful changes across their operations.

Making Supply Chains More Responsible

Improving supply chain practices is a smart place to start. By setting clear standards and conducting audits, companies can ensure their suppliers meet social and environmental expectations. This approach not only minimizes risks but also opens the door to better efficiency and new ideas [7].

Once the supply chain is addressed, companies can focus on operations to further their sustainability efforts.

Cutting Energy Use and Waste

Streamlining operations is another critical step. Research shows that energy-efficient practices and small behavioral adjustments can slash energy bills by 18-25% for mid-sized companies [9].

Take the example of The Herald Review/Itasca Shopper, which achieved impressive results by tackling waste:

• 97% reduction in solid waste

• $18,000 saved annually on disposal costs

• $2,600 saved each year by reusing ink

• Zero upfront costs [8]

Similarly, Pearl Pressman Liberty upgraded its lighting to energy-efficient systems, saving over $21,000 annually. The environmental impact? Equivalent to taking 28 cars off the road [8].

Linking Employee Goals to Sustainability

Once operations are optimized, the next step is aligning employees with sustainability objectives. Tying performance evaluations and incentives to sustainability goals can inspire employees to actively contribute.

"Leadership is essential - beginning with the CEO and supported by the executive team." – John Brock, CEO of Coca-Cola Enterprises [5]

Frost Paint and Oil demonstrated the power of employee incentives:

• 55% reduction in hazardous waste

• $25,000 in cost savings

• Additional 22% waste reduction the following year [8]

Here’s how companies can align employee performance with sustainability:

• Add clear, measurable sustainability goals to job descriptions.

• Offer training tailored to specific roles.

• Recognize and reward employees for their sustainability efforts.

• Form sustainability committees with employee involvement [10].

These steps not only help businesses achieve their sustainability targets but also foster a culture of shared responsibility and innovation.

Using New Ideas to Improve Sustainability

Mid-sized companies are finding ways to lower their environmental impact while boosting profits by adopting circular business practices and leveraging smart technology.

Implementing Circular Business Methods

Did you know that extending a product's lifespan by just one year can slash its carbon footprint by 20-30%? That’s the power of circular business methods [11].

Here are a few real-world examples of how companies are putting circularity into action:

"Adopting circular practices can drive innovation, reduce costs, and improve resilience, positioning smaller companies as leaders in the growing green market." - Ellen MacArthur Foundation [12]

These strategies not only help the planet but also create opportunities for companies to innovate and thrive.

Choosing the Right Green Technologies

Pairing circular business methods with smart technology takes sustainability to the next level. For instance, AI systems alone can reduce energy waste by up to 10% [13]. Grid Edge’s AI platform provides a great example - helping UK utilities predict energy demand with 95% accuracy in 2024 [14].

Other tech-driven solutions include energy-efficient data centers and renewable energy integration. Meta’s Swedish facility uses naturally cold Nordic air for cooling, while Google’s DeepMind AI cut its data center energy usage by 40% [13].

"As renewable sources can be replenished naturally, they have considerably lower impact on the environment." - Alex Taylor, Head of Marketing, CrownTV [13]

By combining forward-thinking strategies with cutting-edge technology, companies can achieve meaningful sustainability goals.

Success Story: Mid-Sized Company Results

One standout example of sustainable innovation is New Belgium Brewing Company. This employee-owned brewery has seamlessly integrated environmental values into its operations, achieving remarkable milestones:

• Became the first wind-powered brewery in the U.S.

• Produced North America’s first certified carbon-neutral beer (Fat Tire).

• Generates electricity using solar panels and wastewater treatment systems.

• Donates $1 per barrel sold to environmental causes, totaling $30 million so far [15].

"We consider social and environmental well-being to be intricately intertwined." - Katie Wallace, Director of CSR, New Belgium Brewing Company [15]

With 89% of small and mid-sized enterprises (SMEs) already implementing sustainability measures [2], companies that embrace innovative green practices can not only stand out but also lead the way in building a cleaner future.

Tracking and Improving Results

As sustainability becomes a key factor in business success, mid-sized companies must adopt reliable systems to measure and refine their environmental efforts. With 86% of companies now releasing sustainability reports [16], tracking progress effectively has become a necessity to stay competitive.

Measuring Progress with Digital Tools

Modern ESG platforms are game-changers for sustainability management. They help establish baselines, set key performance indicators (KPIs), and track progress systematically. These tools simplify data collection across critical areas:

For example, since 2015, companies have reported a 9% annual rise in water usage [16]. Digital dashboards can highlight trends like this, making it easier to identify areas needing improvement.

Benchmarking these metrics against established sustainability standards adds another layer of accountability and helps validate progress.

Comparing Performance to Standards

Three major frameworks stand out for guiding sustainability reporting:

1. Global Reporting Initiative (GRI)
   Trusted by 73% of the world’s 250 largest companies [17], GRI offers detailed guidelines for comprehensive sustainability reporting.

2. Sustainability Accounting Standards Board (SASB)
   

   SASB zeroes in on industry-specific metrics, focusing on financial issues that directly affect business performance.

3. Task Force on Climate-related Financial Disclosures (TCFD)
   

   This framework specializes in evaluating climate-related risks and opportunities.

A great example of leveraging these benchmarks is Fedrigoni, which revamped its supplier evaluation process in 2023. By using EcoVadis assessments and targeted training, it achieved a significant milestone - more than two-thirds of its suppliers improved their sustainability scores [19].

With clear benchmarks, mid-sized companies can develop adaptable management systems to keep their sustainability efforts on track.

Setting Up Flexible Management Systems

Sustainability is no longer just a buzzword - 78% of executives now see ESG initiatives as essential to driving business value [18]. To create flexible management systems, companies should focus on the following:

"Strong ESG compliance, particularly with laws like AB-1305, is no longer optional; it's a competitive imperative." – David Hernandez [18]

Conclusion: Making Sustainability Pay Off

Main Advantages for Mid-Sized Companies

Sustainability is no longer just a buzzword for mid-market businesses - it’s a priority. In fact, 62% of these companies now rank sustainability on par with or above financial performance [20]. And this commitment is paying off in measurable ways:

These numbers show that sustainability isn’t just good for the planet - it’s a smart business move. For example, Knettenbrech + Gurdulic, a mid-sized waste management company, secured better financing terms by tying loan conditions to improvements in its EcoVadis ESG rating in 2021 [20].

Getting Started with Sustainability

The benefits are clear, but how can mid-sized companies begin their sustainability journey? It starts with practical, actionable steps:

"The willingness to take a long-term approach – even in the face of short-term difficulties – is a key pillar of sustainability, and it will serve businesses well in the future."
– Trent Gazzaway, global leader services lines and capability at Grant Thornton International Ltd [20]

Here are three proven ways to turn sustainability into a business advantage:

• Focus on Energy and Resource Efficiency
  Start small with cost-saving changes like energy-efficient lighting or better insulation. One Spanish automotive supplier achieved a 15% reduction in CO₂ emissions, cutting 16,000 tonnes in 2017 alone [21].

• Take Advantage of Financial Incentives
  Explore sustainability-linked loans and government programs. Babor, a family-owned cosmetics company, tied its loan terms to annual CO₂ reduction targets, securing favorable financing [21].

• Incorporate Sustainability into Performance Goals
  Motivate your team by linking sustainability targets to performance incentives. This approach can drive immediate results [21].

"For a small to medium-sized company, a sustainability strategy doesn't have to be complex to still be very effective. It can start from a simple intention, like the improvement of your brand through promoting the sustainability performance of products."
– Hannes Partl, principal consultant at ESG consultancy Sphera [22]

FAQs

What are the best ways for mid-sized companies to measure the success of their sustainability efforts?

Mid-sized companies looking to gauge the success of their sustainability efforts should focus on tracking key performance indicators (KPIs). Metrics like energy consumption, greenhouse gas emissions, water usage, and waste reduction offer a solid snapshot of environmental performance. These numbers not only show where a company stands but also point to areas that need attention.

Another smart approach is using life-cycle assessments (LCA). These evaluations look at the environmental impact of a product throughout its entire life - from manufacturing to disposal. By comparing LCA results to industry standards or past performance, companies can measure progress and show their dedication to sustainability. Sharing these findings with stakeholders on a regular basis can also strengthen trust and demonstrate accountability.

How can mid-sized businesses actively involve employees in sustainability initiatives?

Mid-sized businesses can bring employees into the sustainability conversation by weaving it into the company’s mission. When sustainability becomes part of the organization's purpose, employees are more likely to feel invested in the cause. Regular updates - whether through team meetings or company-wide announcements - can help keep this commitment front and center.

Getting employees actively involved is just as important. Creating green teams or sustainability committees gives staff a chance to lead eco-friendly projects. Offering perks like paid volunteer hours for environmental initiatives or rewards for creative sustainability ideas can also boost participation. These efforts not only energize employees but also help build a workplace culture that prioritizes long-term, responsible growth.

How can mid-sized companies adopt sustainable practices without compromising their financial goals?

Mid-sized companies can make sustainability work for them by viewing it as a long-term investment rather than just another expense. By prioritizing initiatives like energy efficiency, cutting down on waste, and sourcing materials responsibly, businesses can reduce their operating costs over time while boosting their bottom line.

There's also a big win when it comes to customer loyalty. Embracing sustainable practices can strengthen connections with environmentally conscious consumers, which can translate into increased revenue. On top of that, weaving sustainability into everyday operations helps businesses stay nimble, better handle market shifts, and meet regulatory demands - ultimately leading to stronger financial stability and resilience.