Top 3 Sustainability Challenges and How to Tackle Them

When it comes to sustainability, the goalposts have shifted. It’s more than just a checkbox on a corporate responsibility report—it’s a crucial part of what makes a business succeed today.

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With more people caring deeply about the environment, businesses feel the heat to act responsibly. From investors to consumers, everyone’s watching. And yes, being sustainable can boost your brand and bottom line, too.

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However, the path isn’t straightforward.

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Businesses often stumble over sustainability challenges, which can stall even the most passionate efforts. But hitting these bumps doesn’t have to mean stopping. The trick is spotting these hurdles early and knowing how to leap over them.

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In this blog, we’ll chat about three common sustainability challenges businesses face. Whether you’re just starting to think about sustainable practices or you’ve been at it for a while but still facing roadblocks, knowing what you’re up against is half the battle.

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Let’s get into it and see how you can tackle these challenges and drive a successful sustainability strategy.

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Three key sustainability challenges

Transitioning to sustainable practices benefits your business’s financial performance and aligns with ethical imperatives. Let’s explore some of the challenges that may hinder your sustainability strategy and see ways to address them.

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1. Getting buy-in from stakeholders

Making sustainable changes can appear costly and time-consuming, often causing hesitation among stakeholders. Board members might exhibit nervousness over altering a traditional, successful business model, fearing financial repercussions.

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One major barrier is that sustainability initiatives often require significant upfront investments, while the returns may take years to realize. Businesses see the high level of required investment as the biggest barrier to implementing their sustainability strategies.

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However, data indicate that sustainability is not an option, it’s a necessity. Reports suggest that 70% of customers avoid companies they feel are unethical, which can impact your customer base and profits. Furthermore, 85% of investors show interest in sustainable businesses, highlighting the potential financial benefits of embracing sustainable practices.

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Winning stakeholder support

• Utilize Financial Data: Stakeholders prioritize financial considerations. When communicating a sustainable vision, present compelling financial data to support your case, demonstrating the potential return on investment (ROI) of sustainable practices.
• Phased Implementation: Avoid overwhelming stakeholders with comprehensive changes. Consider a step-by-step approach to minimize perceived risks, securing gradual buy-in for your sustainability initiatives. Align innovation and sustainability with core business objectives so that they are complementary rather than competing priorities.

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2. Supply chain difficulties

You may gain internal approvals for sustainability initiatives, but you still have a responsibility to promote a sustainable supply chain. Consumers scrutinize supply chain practices, holding you accountable for both internal and external operations.

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For instance, sustainable apparel shipment in plastic packaging could tarnish your brand's eco-friendly image.

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Whether you're running a current business or setting one up, supply chain management can be difficult, and for many, they can't always trace where the raw materials are coming from.

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The biggest challenge is finding suppliers willing to be transparent about their practices, manufacturing processes, and raw materials if they reduce waste, improve efficiency, and seek to develop end products that don't just lower costs but take ESG factors into account.

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Re-evaluating your supply chain

• Holistic Evaluation: Examine each component of your supply chain. Identify opportunities for improvement without overhauling everything at once.
• Small Steps, Big Impact: Introducing eco-friendly packaging through an existing supplier can demonstrate progress and reduce customer backlash.

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3. Lack of information

Organizations often aspire to sustainable change without knowing where to start. Uncertainty looms over the business implications or tracking developments of newly implemented methods. It can be difficult for businesses to accurately measure, track, and report on sustainability metrics.

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While frameworks exist, quantifying carbon emissions, energy savings, waste reduction, and other impacts remains a challenge. Without clear sustainability data, organizations struggle to demonstrate the impact of their efforts both internally and to external stakeholders.

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Leveraging technology for clear data

• Leveraging Technology: Technological solutions can provide ESG (Environmental, Social, and Governance) support. Technology enhances the ability to track sustainability progress and manage risks, simplifying reporting. Technology can be a great partner for ESG measures, helping put a practical measure on sustainability that allows businesses to manage risk and optimize reporting.
• Consider Investment: Acquiring technological resources might initially require investment, but it saves time and resources in the long run, promoting sustainability in a busy operational environment.

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Summary

From both ecological and economic perspectives, addressing key sustainability challenges like climate change is important for businesses, big or small.

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Engage with industry experts and continually seek feedback. Success requires collaboration across the entire value chain, from raw-material suppliers to end customers, and often with industry coalitions and other stakeholders as well. With persistence and a strategic approach, businesses can overcome these sustainability challenges and contribute to a more sustainable future.

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Enable your transition to a sustainable business with comprehensive guidance from Arbor, a platform specializing in carbon accounting solutions. Request a demo.