Sustainability Standards In Focus: Options For Business

Businesses use several key operating standards to improve and evidence their sustainability improvements.

These standards vary in where they are best applied, as well as each holding their own unique benefits and limitations.

Below we have summarised 10 of the most widely adopted Sustainability Standards, intended to support you consider if use of standards is right for your business.

1. For Overall Business Operations: ISO 14001

ISO 14001 helps businesses achieve broad improvements to environmental performance, targeting more efficient use of resources and reduction of waste. It is a sustainability standard that provides a clear framework for businesses to follow and review annually.

Common practice is to seek external verification to validate compliance.

ISO14001 Benefits

Provides a structured framework for environmental management.
Helps reduce waste and energy use, potentially lowering operational costs.
Enhances company reputation by demonstrating a commitment to environmental responsibility that is widely recognised.
Can improve compliance with environmental regulations and reduce the risk of legal penalties.

ISO14001 Limitations

Implementation can be time-consuming and expensive.
Requires continuous monitoring and updating, which may strain resources.
Smaller businesses might find it difficult to meet all requirements due to limited resources.

Image of performance tracking, a key component of the ISO14001 sustainability standard.

2. Robust Carbon Measurement: Greenhouse Gas (GHG) Protocol

The GHG Protocol is a well established global framework for the measurement and management of greenhouse gas emissions.

It covers direct business operations, supply chains and mitigating actions.

Protocol Benefits

Provides a clear framework for measuring greenhouse gas emissions, including carbon dioxide.
Comprehensive coverage for emissions accounting under the different scopes of emissions: Scopes 1, 2 and 3.
Adaptable to organisations of various sizes.

Protocol Limitations

Comprehensive range of standard can be complex for newcomers to implement fully.
Gaining full use requires identification of emissions in supply chain, which can be challenging and costly.

3. For Efficient Energy Use: ISO 50001

ISO 50001 provides a framework for organisations to manage and improve their energy performance, increase energy efficiency, and reduce greenhouse gas emissions.

ISO50001 Benefits

Comprehensive framework to aid reduction of energy consumption and associated costs.
Promotes efficient use of energy, which can improve overall operational efficiency.
Can enhance corporate image and competitiveness by demonstrating energy responsibility.

ISO50001 Limitations

High initial cost for implementation and certification.
Requires dedicated personnel and ongoing commitment to maintain standards.
May be challenging for smaller businesses to achieve due to resource constraints.

Image of energy performance data monitoring, a key component of the ISO50001 standard implementation.

4. For Net Zero Planning: Science Based Targets initiative (SBTi)

The SBT Initiative provides businesses with a framework to set science-based targets for reduce greenhouse gas emissions.

Reductions targets are set to align with the established climate science that underpins an international drive towards Net Zero.

SBTi Benefits

Aligns corporate emissions reduction targets with climate science.
Enhances credibility and investor confidence through scientifically validated goals.
Supports long-term sustainability planning and risk management.

SBTi Limitations

Setting and achieving science-based targets can be challenging and costly.
Requires detailed emissions data and rigorous planning.

Graphic of a carbon footprint, the fundamental impact that the SBTi standard strives to address.

5. Broadening Your Sustainability: ISO 26000 (Social Responsibility)

ISO 26000 is a sustainability standard on social responsibility, supporting businesses to operate in a socially responsible way.

Social responsibility stands as a key pillar of sustainable development, yet is often overlooked in favour of a focus on environmental impact. ISO 26000 helps you avoid this oversight.

It covers areas such as human rights, labour practices, the environment, fair operating practices, consumer issues, and community involvement.

ISO26000 Benefits

Provides guidance on social responsibility, covering a wide range of areas from human rights to community involvement.
Enhances stakeholder trust by promoting ethical and transparent business practices.
Helps improve employee morale and customer loyalty through responsible operations.

ISO26000 Limitations

As a guidance standard, it is not certifiable, which can limit its perceived rigor.
Implementation can be complex, requiring substantial changes to corporate culture and operations.
May require significant investment in training and process changes.

6. Impact Transparency: Carbon Disclosure Project (CDP)

The CDP system for companies to measure and manage their environmental impacts. Focuses primarily on carbon emissions, water usage, and deforestation.

This standard issues a performance grade ranked D to A, which are publicised annually.

CDP Benefits

Encourages transparency in environmental impact, particularly related to carbon emissions.
Can help identify risks and opportunities related to climate change.
Supports stakeholder engagement and reputation enhancement.

CDP Limitations

Reporting can be labour-intensive and complex, requiring detailed data.
Smaller companies might struggle with the level of detail required – organisation currently following CDP tend to be larger ones.
Non-compliance or poor performance may be publicly disclosed, potentially harming reputation.

Graphic of a person in thought, green themed.

7. For International Recognition: Global Reporting Initiative (GRI) Standards

The GRI Standards are the most widely used standards for sustainability reporting.

They help organisations understand and communicate their impacts on issues such as climate change, human rights, and corruption.

GRI Benefits

Provides a comprehensive framework for sustainability reporting, widely recognised and respected.
Enhances transparency and accountability, building trust with stakeholders.
Facilitates benchmarking and comparison with other organisations.

GRI Limitations

Reporting can be resource-intensive and require extensive data collection.
The process can be complex and time-consuming, especially for smaller organisations.
Requires continuous updates and alignment with evolving standards.

Image of upwards trajectory, representing ongoing aim of many sustainability standards to improve performance.

8. Green Financial Planning: Sustainability Accounting Standards Board (SASB) Standards

The SASB Standards provide guidance on the disclosure of material sustainability information to investors, focusing on financially material issues within specific industries.

SASB Benefits

Focuses on financially material sustainability issues, aiding investors in making informed decisions.
Provides industry-specific guidance, ensuring relevant and useful disclosures.
Can enhance investor confidence and access to capital.

SASB Limitations

Primarily geared towards publicly traded companies, potentially less applicable for private businesses.
Implementation can be resource-intensive, requiring significant data gathering and analysis.
Constantly evolving, which may necessitate frequent adjustments to reporting practices.

Image of coins paired with increasing plant growth, representing investment in sustainability and nature.

9. For Sustainable Buildings: BREEAM (Building Research Establishment Environmental Assessment Method)

BREEAM is a leading sustainability assessment method for master planning projects, infrastructure, and buildings.

Consideration is given a wide range of environmental, social, and economic sustainability performance factors.

BREEAM Benefits

Assesses and improves the sustainability of building projects.
Can enhance property value and marketability through recognised certification.
Promotes healthier and more sustainable living and working environments.

BREEAM Limitations

Certification can be expensive and time-consuming.
Requires ongoing compliance and re-certification to maintain standards.
Smaller projects may find it difficult to meet all criteria.

Graphic of a sustainable building, the outcome that all BREEAM assessments aim towards.

10. Leading Sustainable Design: LEED (Leadership in Energy and Environmental Design)

LEED certification program holds a globally recognised focus on building performance and sustainable building practices.

This sustainability standard extends beyond environmental performance to targeting social and governance benefits.

LEED Benefits

Recognises and encourages sustainable building practices.
Can reduce operating costs through energy-efficient design.
Enhances building marketability and occupant satisfaction.

LEED Limitations

High costs for certification and potential retrofitting.
The certification process can be lengthy and complex.
Requires ongoing maintenance and performance tracking.

Sustainability Standards: Supporting Progress

The standards outline here help organisations systematically improve various aspects of their sustainability practices, measure their progress, and communicate their achievements to stakeholders.

In doing so, they provide businesses supportive guidelines to progressively improve sustainability practices. However, they vary in complexity and resource requirements, with some proving more challenging to implement than others.

Given this, different approaches may suit different businesses. For some, full adoption of a standard may be best. For others, they may better suit incorporating specific components of standards to optimise business practice to avoid excess burden.

Overall, adopting these standards where appropriate can significantly enhance a company’s sustainability performance. Careful consideration of their demands and benefits is though essential.

If this sustainability standards overview has been useful for you, then the below guides may also be helpful to check out:

Net Zero Business: A Simple Guide To Getting Started

Carbon Offsetting: An Overview

Sustainability For Small Business: Useful Actions To Take

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