With big business fast recognising the benefits of addressing and enhancing their triple bottom line performance, many small businesses struggle to understand the business case going down the sustainability road. This is based on the misguided belief by small business owners that their carbon footprint is insignificant and therefore any action taken to mitigate this impact would be seemingly meaningless in the greater scheme of things and would go unnoticed.
Besides the fact that the aggregate impact of the total number of SME’s  in South Africa is actually a massive contributor to the country’s total carbon footprint, a massive opportunity does exist for these companies to unlock their eco-advantage by weaving sustainability into the fabric of their business.

By doing so, small innovative companies are discovering that (besides it being the right thing to do) they are able to make significant returns on their sustainability investment. The impact can be significant and can potentially transform these businesses through increased revenue, reduced overheads, and an overall enhancement of their brand and reputation.
So the question is: What can a small business do to unlock their Eco-advantage?
Firstly, they should have their carbon footprint assessed to understand their “business as usual” scenario. A carbon footprint of an organisation includes things such as electricity consumed, business air and car travel, use of company owned vehicles, product distribution to name a few. It is recommended that the services of an environmental consultancy are used the first time around to ensure that this is accurate and reliable so that the ongoing environmental performance of the company can be measured on an annual basis.
Once the carbon footprint of the company has been established, the company should embark on an emissions reduction drive to reduce their consumption wherever possible. This may include changing behaviour, changing procurement criteria as well as investing in technology and appliances that reduce energy and fuel consumption.
It is however impossible to nullify the carbon footprint of an organisation, no matter how small, to zero as long as there is a reliance on energy from fossil fuels. It is therefore quite acceptable to purchase carbon offsets or carbon credits and by so doing effectively reduce their carbon footprint to zero. Terms such as “carbon neutral, carbon zero, climate neutral” are used to describe this type of environmental activity.
A carbon credit is basically one tonne of carbon dioxide reduced. The concept of “carbon neutrality” is based on the concept of “equivalence” where emissions reductions have been achieved in one geographic location and are as useful in another part of the world due to the fact that there are no geographical boundaries in the atmosphere. As a result carbon credits are traded globally between organisations that are reducing their impact and those wishing to offset the impact of their operations that they are as yet not able to reduce.
Carbon Neutrality is becoming extremely popular among SME’s as it is being seen as a clear differentiator for companies wishing to stand out from the rest in an increasingly crowded marketplace.
However, while going carbon neutral on its own is a great start, it is also important to integrate sustainability into the core business activities through energy efficiency, effective waste and water management and education and awareness.
Furthermore, significant commercial opportunities exist where companies are starting to identify and develop environmentally friendly products and services with the objective of attracting new customers and penetrating new markets.
One example is a design company we work with, who not only became carbon neutral through their investment in a low cost energy efficient housing scheme in Natal, but also started a new division offering sustainable printing solutions as an added value offering. They now receive 50% more business than they were before on the back of increased demand for sustainable paper and ink solutions.
What should be avoided though is the risk of being seen as a “greenwasher”. This is the term that refers to companies making the least effort to get the most credit. As time passes and we become more immersed in the green economy, consumers are becoming increasingly savvy and are able to identify these situations a mile off. If this does occur, there could be a serious backlash that an SME could ill afford.
If you have a small company that is struggling for recognition and profitability, it is definitely worth exploring what the green space has to offer. You may find that your company would be the first in its sector to be carbon neutral or to offer environmentally sustainable merchandise. If this is the case, your company will be in a great position to ride this green wave. Afterall, the green economy is being seen as the greatest paradigm shift since the advent of the Internet so it’s worth spending a bit of time digging deeper to find those green nuggets.

By Kevin James, CEO Global Carbon Exchange