How small businesses can thrive with sustainable practices

Published Monday 13 October 2025

Table of contents

• What is sustainability in business?
• Why sustainability matters for your small business
• Planning to be a sustainable business
• Sustainability tips – choose a couple
• Business and sustainability go hand in hand
• FAQs on sustainability in small business

Key takeaways

• Focus on two or three high-impact sustainability initiatives rather than attempting comprehensive changes to maximise results while respecting your limited time and budget.

• Implement cost-saving measures like energy audits, going paperless, and switching to reusable items to reduce operating expenses while improving your environmental impact.

• Engage employees in your sustainability planning by creating incentives, competitions, and clear explanations of benefits to build sustainable thinking into your company culture.

• Track simple metrics such as monthly utility bills, waste recycling amounts, and paper usage to measure the success of your sustainability efforts and monitor how changes affect your profits.

What is sustainability in business?

Sustainability in business means meeting your needs today without limiting future generations’ opportunities. For your small business, this means balancing three key areas:

• Reduce your environmental impact: Manage waste, conserve energy and water, and choose sustainable materials
• Support your people and community: Pay fair wages, use ethical practices, and contribute positively to society
• Stay profitable for the long term: Build a business that thrives financially while caring for people and the planet

Focusing on these three areas helps you build a stronger business that people want to support.

Why sustainability matters for your small business

When you replace, protect, or conserve natural resources in your daily operations, you help combat climate change and plastic pollution.

Beyond environmental benefits, sustainability delivers three key business advantages:

• Reduce costs and increase profitability: Use fewer resources to lower your operating expenses and improve your financial performance
• Attract staff, customers, and investors: Show your commitment to sustainability to appeal to people who care about environmental impact
• Meet regulatory requirements: Stay up to date with government expectations and new climate-related standards

Planning to be a sustainable business

You do not need to spend a lot or make things complicated to get started. Start small and build on your progress.

Your sustainability plan should include: * clear goals and timeframes * progress monitoring * employee engagement * customer involvement

• Clear goals and timeframes: Define specific, measurable targets
• Progress monitoring: Establish metrics to track success
• Employee engagement: Create incentives or competitions to build sustainable thinking into company culture
• Customer involvement: Extend initiatives to include your customer base

Sustainability tips – choose a couple

Focus on two or three high-impact initiatives rather than attempting comprehensive changes. This targeted approach maximises results while respecting your limited time and budget.

Choose initiatives that match your business values and matter to your employees or customers.

Energy use

• Energy audit: Use electricity meters to identify high-consumption equipment
• Efficiency improvements: Optimise usage patterns or upgrade to energy-efficient alternatives
• Renewable options: Contact energy providers about solar or wind power alternatives

Stationery

• Reuse stationery, binders, and folders when possible instead of buying new ones
• Run your business digitally to reduce waste and costs from paper, printers, and filing cabinets
• Print only when necessary, use recycled paper and ink cartridges, avoid colour printouts, print double-sided, and reuse unwanted paper

Recycling

• Provide clearly labelled bins for returnable bottles, non-returnable bottles, aluminium cans, paper, and food scraps
• Contact your local e-scrap recycler for a workplace bin and encourage employees to bring in e-waste from home

Kitchen and lunchroom

• Set up a container library in your kitchen so people can borrow containers for package-free food
• Use real kitchenware instead of disposable cups, plates, knives, and forks
• Use green cleaning products to improve health, reduce allergic reactions, and help the planet

Help employees

• Give your team reusable coffee cups, water bottles, and tote shopping bags
• Encourage your team to ride, walk, or take public transport to work

Support environmental causes

• Support community-driven program to build your reputation and make a positive impact
• Adopt a green cause and organise an annual fundraising or volunteering day with your team and customers

Spread the word and educate

• Share your sustainability efforts on your website, newsletters, and social media
• Work with other local businesses to share sustainability ideas and solutions

Choose eco-friendly vendors

• Make sure your suppliers follow laws and regulations on pollution and waste
• Choose products that use fewer resources and create less pollution
• Order catering that eliminates or minimises waste

Business and sustainability go hand in hand

Sustainability delivers measurable results for your business beyond environmental impact. You can use sustainability to:

• Reduce your operating costs by using resources efficiently
• Attract top talent who value environmental responsibility
• Win loyalty from environmentally conscious customers
• Access investment from sustainability-focused investors

When you commit to sustainability, you show leadership and set your business up for long-term success.

Try Xero for free to get started today.

FAQs on sustainability in small business

Find answers to common questions about making your small business more sustainable.

How much does it cost to make my small business sustainable?

You do not need to spend a lot. Many changes, such as reducing waste or going paperless, can save you money. Start with low-cost initiatives and reinvest the savings into bigger projects as your business grows.

How long does it take to see results from sustainable practices?

You can see some results quickly, such as lower electricity bills. Other benefits, such as better brand reputation and customer loyalty, take longer. Stay consistent to see the best results.

How do I measure the success of my sustainability efforts?

Track simple metrics such as your monthly utility bills, the amount of waste you recycle, or your paper use. Accounting software can help you monitor these costs and see how your changes affect your profits.

What if my employees resist sustainable changes?

Involve your team in planning and explain the benefits for them and the business. Lead by example and make it easy for everyone to take part. Encourage and recognise your team’s efforts.

Do I need to comply with sustainability regulations?

Regulations vary by industry and location. In Australia, some businesses must prepare an annual sustainability report under the Corporations Act 2001. Check your local government and industry association websites for requirements that apply to your business.