Small and Mighty Group Managing Director Tara James
A top business strategist says sustainability is a key ingredient to growth that’s still missing from many Aussie SMEs and warns those who don’t adapt will increasingly lose market share.
Sustainability is now a key purchase criterion for almost half of Australian consumers[1][2], however Small and Mighty Group Managing Director Tara James says Aussie SMEs are particularly lagging when it comes to making that sustainable pivot. She says a lack of understanding on what sustainability is, is to blame.
Tara has spent years helping enterprises adapt and flourish amid constantly shifting landscapes and has attended workshops and conferences across the globe to discuss and help clients unlock new revenue streams and stay ahead of the curve.
At one of Australia’s largest trailer manufacturing companies, GLT, she worked hand-in-hand with the team to clearly communicate the value sustainable products have, alongside the thousands of dollars these products can save customers and the industry.
She says a holistic sustainable approach just like the one taken at GLT is now a key ingredient global leaders are using to drive market share and profits. James points to Danish jewellery powerhouse Pandora, who ditched natural diamonds for lab-grown with the latter now seeing a 32 per cent advance in value, compared with natural diamond value sales dropping 9 per cent.[3]
IKEA too is leading the sustainability charge, adopting ‘circularity’ in their products to increase a product’s lifespan to boost reuse and recycling rates.[4] IKEA collected 6.6 per cent YOY retail sale growth in the 2023 financial year.[5]
“Sustainability means far more than putting solar panels on the roof or carbon offsetting a company. But it remains a somewhat daunting term for many companies who have a limited understanding of what a green pivot means and a fear that it will be costly,” says James.
“But it doesn’t need to be.
“At its core, sustainability is about designing products and services with longevity and efficiency in mind and many SMEs already have sustainable elements to their business without even realising it. If they can boost those practices and let their customers know about the journey, they are set to capitalise on a fast-evolving, green-minded market.
“And this is exactly what we did at GLT. By showcasing the ripple effect of their sustainable practices and products, it makes the benefits relatable and tangible for their customers and the industry. It becomes much more than just numbers on a page.”
Additionally, says James, creating repairable products and establishing a business model around servicing and repairing, can not only reduce waste but also generate additional revenue and create new markets.
She adds that businesses must look at a product life cycle, and pivot towards circularity.
“Look at designing products with end-of-life considerations to ensure they are repairable and recyclable as this not only adds another revenue stream for businesses who can set up a repair hub inhouse, but is in line with what Australian customers increasingly want,” says James.
“Consumers are favouring companies with sustainable practices and we’re seeing the nation’s younger generations embrace recycling, reusing and repairing in a way that hasn’t been seen in decades.”[6]
For companies that don’t produce tangible goods, sustainability can look like embracing workplace diversity and creating flexible working arrangements to reduce operational costs and carbon footprints.
“This shift can also attract top talent seeking work-life balance and sustainability focused employers, so the benefits are incredibly long-reaching,” says James.
“At Small and Mighty Group sustainability has been at our core since day one. We actively recruit for diverse talent in our team, and our remote workforce is spread across the world. This not only drastically reduces our carbon footprint and office overheads, but allows us to tap into a far wider talent pool.
“Around 70% of Australians express a preference for working for a company that values and implements sustainable practices[7]. This tells us companies must make this pivot or risk losing top talent.”
James adds that embracing a more holistic sustainable business model will be key to economic survival in the years to come and says a great starting point to make that pivot is by familiarising yourself with sustainability checklists[8] and creating a business strategy that adopts as many as possible.
[4] https://www.ikea.com/global/en/our-business/people-planet/designing-for-a-circular-future/
[5] https://www.ikea.com/global/en/our-business/how-we-work/year-in-review-fy23/
[7] https://www2.deloitte.com/xe/en/pages/about-deloitte/articles/millennialsurvey.html
[8] https://business.gov.au/environmental-management/sustainability-checklist
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