With small businesses poised to be the real changemakers in the sustainability arena, this blog can help get you moving in the right direction.
As a new sponsor of the National Small Business Association (NSBA), American Express Global Business Travel (Amex GBT) is excited to meet you and to further support smaller organizations like yours. We look forward to sharing helpful information with you geared towards driving your small business forward.
It’s easy to look to leaders of countries and large corporations to tackle the climate crisis, but this is not a problem they can solve alone. The severity of the issue necessitates that every organization, no matter its size, take part in the solution.
When you consider the sheer number of small- to medium-sized enterprises (SMEs) worldwide, this group collectively could have a massive impact on climate change, possibly even more so than their larger counterparts. According to the US Small Business Administration, there are approximately 32.5 million SMEs within the United States that employ nearly 47% of the private workforce. On a global level, the World Bank estimates that a whopping 90% of all businesses are SMEs.
Because of their smaller size and ability to react nimbly to changes in the business environment, SMEs also have the potential to make a significant difference in a relatively short period.
Still, an SME’s journey to net zero is no easy feat.
Fortunately, there’s a slew of resources aimed at helping SMEs become sustainable. The SME Climate Hub is an especially useful one. It has available for download its 1.5°C Business Playbook, which guides SMEs on how to establish a climate strategy, define targets, set supplier requirements, and align value propositions with a “1.5-degree and net-zero ambition.”
So, we’ve put together actions that can help get the sustainability ball rolling.
Track & report: Manage it by measuring it
To reach net zero, you first need to identify and quantify your company’s sources of greenhouse gases through a process known as carbon accounting or greenhouse gas inventory.
When calculating your carbon footprint, greenhouse gas emissions are grouped into three categories:
· Scope 1: Direct emissions from sources owned or controlled by the organization, such as fuel combustion from facilities or company vehicles.
· Scope 2: Indirect emissions from owned or controlled sources, such as purchased electricity, steam, heat, and cooling.
· Scope 3: All other indirect emissions in the value chain, such as purchased raw goods, distribution, and employee business travel.
Procure green: Do business with sustainable businesses
You can make a difference by choosing partners with other businesses with strong sustainability standards and practices. When selecting which suppliers to work with, look for ones that are independently accredited and certified as sustainable and who share your values.
When vetting suppliers, interview them to make sure their environmental, social, and governance (ESG) standards align with your company’s objectives. You can ask if they have an environmental policy in place, if they track and report carbon emissions, what their reduction goals are if they have published a sustainability report, etc.
Amex GBT makes it easier for our clients to partner with travel suppliers that meet their sustainability standards through our evaluation process that rates ESG performance. All our suppliers are obligated to comply with applicable environmental laws and take measures to mitigate their impact.
Influence choice: Empower employees to be more sustainable
After onboarding partners with sustainable practices, encourage employees to use these suppliers’ services and products and select the green option whenever possible. This will require communication efforts with clear guidelines on how employees can participate. Having senior leadership endorse the program and explain its value can help secure employee buy-in. You can inspire employees to get involved in the conversation and help shape the sustainability program by setting up an employee resource group devoted to the environment and climate change.
Also, consider asking suppliers how they can support your efforts.
For instance, if your employees travel for business, we can help drive them toward environmentally friendly choices at the point of sale. Our Neo™ booking tool makes it intuitive for travelers to choose greener options by highlighting more sustainable flights, hotels, and rental cars in their search results.
Offset carbon emissions
Carbon offsets represent a quick way for companies to mitigate emissions in the short term while pursuing reductions over the long term. While we recognize that carbon offsets alone are not the solution, we view them as a bridge to the future when more decarbonization solutions become available.
Through carbon offsetting, we achieved carbon neutrality for employee business travel in 2019 and are now helping others do the same.
In January 2021, we launched a carbon offset platform to help clients and suppliers reach their respective carbon neutrality commitments, facilitating the purchase of offsets from our trusted partners on preferred terms. Every carbon offset project offered follows a rigorous quality assurance protocol, including independent auditing, certification, and validation.
Drive towards net good: Play to your unique strengths
There is something your company does exceptionally well that makes it stand out from all others. It is your raison d’être. So, when defining how you can create the most meaningful environmental change, lean into your strengths, and allow your North Star to guide your ESG sustainability program. It’s about looking at what makes your business shine and does better than any other to make this world a better place.
For an in-depth look at our sustainability program, check out our Environmental, Social, and Governance Report.
American Express Global Business Travel is a proud sponsor of NSBA. As the travel management company of choice for small businesses, discover what we can do for you.