The Biggest Sustainability Challenges Facing Companies (and How to Beat Them) Amy Smith, September 25, 2024September 25, 2024 Sustainability isn’t just a nice-to-have anymore—it’s an absolute must. But let’s face it, going green can be challenging. While the benefits of sustainable practices are clear, getting there often involves navigating some pretty complex obstacles. 1. Intermittency and Variability: The Renewable Energy Dilemma One major challenge businesses face is the intermittency and variability of sources like wind and solar. These energy types depend on weather conditions—solar panels stop working at night, and wind turbines don’t spin on calm days. The solution: To tackle this, systems thinking is key. This approach looks at the bigger picture, analyzing how different elements work together. When applied to renewable energy, it means focusing on how energy is generated, stored, used, and how waste is managed. For instance, energy storage solutions, such as batteries, can store excess power generated during peak times. Using a mix of renewable sources can also help balance energy availability, ensuring continuous power even when one source is down. Systems thinking can also guide companies in choosing efficient designs and technologies that boost sustainability without sacrificing reliability. This kind of strategic, holistic approach helps in overcoming sustainability challenges, including the intermittency problem, making renewable energy not just viable but a dependable choice for businesses. 2. Managing Carbon Emissions: More Than Just Numbers Every business knows that cutting down carbon emissions is essential—but that doesn’t mean it’s easy. And if you’re a global company? Well, the complexity multiplies fast. But here’s the thing: it’s no longer enough to simply offset emissions through carbon credits. Consumers and governments want to see companies genuinely reduce their carbon output, not just offset it. What can you do? Look at your supply chain, shipping methods, and energy usage. Consider implementing energy-efficient technologies, like LED lighting or high-efficiency heating systems, to reduce energy consumption. For transport-heavy industries, electric vehicle fleets or fuel-efficient alternatives can make a significant dent in emissions. Some businesses are also setting science-based targets, aligning their goals with international climate standards. This doesn’t just help the planet—it builds trust with customers and stakeholders who value accountability. 3. Resource Scarcity: Getting More From Less We live in a world where key resources—like water, metals, and even certain crops—are in high demand and short supply. Whether it’s the water-intensive production of textiles or the rare earth metals used in electronics, industries are feeling the pinch. Balancing resource needs with environmental responsibility is a challenge many companies struggle with. The answer? Resource efficiency is key. This could involve anything from recycling materials to using less water in production. Another option is exploring alternative materials. For instance, some companies are turning to bio-based plastics or other sustainable materials that reduce the need for finite resources. It’s also worth looking into circular economy models, where products and materials are designed to be reused, repaired, or recycled, extending their lifecycle and reducing waste. 4. Supply Chain Transparency: Can You See Everything? Most companies don’t have complete visibility into their supply chains—and that’s a problem. Sustainable practices at your own facility mean little if the rest of your supply chain is creating significant environmental harm. Whether it’s deforestation, pollution, or unethical labor practices, the actions of suppliers can reflect poorly on your brand. So, how do you fix it? Improving supply chain transparency is essential. This starts with auditing suppliers and setting clear sustainability standards that everyone must meet. Some companies are also using blockchain technology to trace materials back to their source, ensuring they’re responsibly and ethically sourced. Partnerships can help here too. Working closely with suppliers who share your sustainability goals can lead to better collaboration and a stronger, more eco-friendly supply chain. 5. Consumer Expectations: Walking the Talk Consumers today are savvier than ever. They don’t just want companies to talk about sustainability—they expect to see real action. Brands that fall short on their sustainability promises risk losing trust, customers, and, ultimately, market share. How can you keep up? Start by being authentic. Don’t overpromise or greenwash your sustainability efforts. Instead, be transparent about what your company is doing well and where there’s room for improvement. Engage with your customers. Ask for feedback and let them know how their choices—like buying eco-friendly products or supporting your brand—contribute to positive change. More importantly, make sustainability part of your business model. Whether it’s through sustainable packaging, fair trade practices, or responsible sourcing, show your customers you’re committed to the cause. 6. Meeting Regulatory Requirements: Staying Compliant As governments crack down on environmental issues, the list of regulations businesses need to follow is growing. And it’s not just about following local rules—international regulations can add another layer of complexity, especially for companies operating across borders. Staying compliant is challenging, but non-compliance can lead to hefty fines or damage to a brand’s reputation. What’s the move? Get ahead of the regulations by staying informed and building a sustainability team that understands the legal landscape. Regular audits of your practices can help ensure you’re staying on the right side of the law. And rather than just trying to meet minimum standards, aim to exceed them. Companies that go beyond basic compliance often find themselves in a stronger competitive position. Rising to the Challenge Sustainability challenges are real, and they’re not going anywhere. But companies that embrace these hurdles, rather than shy away from them, will be the ones leading the way into the future. Image Source: Freepik Share on FacebookTweetFollow usSave Business