Sustainability certification schemes for businesses

Being a sustainable start-up could make sound business sense.

From the government’s commitment to net zero to consumers choosing more sustainable lifestyles, many start-ups are launching that offer sustainable solutions to tackling issues such as plastic use and climate change.

Yet many smaller and new businesses are yet to make significant inroads to becoming more sustainable ventures.

Research by the British Chambers of Commerce (PDF, 213 KB) found that 64% of UK businesses say they don’t have an environmental sustainability policy in place.

While many smaller companies are making initial changes – research by the British Business Bank (PDF, 210 KB) found that 94% of smaller businesses had taken at least one action to reduce carbon emissions – there is still much that start-ups can do.

The British Chambers of Commerce (PDF, 213 KB) survey found that 82% of respondents believed environmental sustainability is about recycling and reusing materials, 72% about reducing the use of single-use products, and 69% believe it’s about cutting carbon emissions.

While adopting green practices such as recycling can put your business on the right path, many companies are turning to environmental standards certification as a means to transform their business and demonstrate their green credentials.

What is green certification?

Green certification is an assessment of how well an organisation meets an environmental standard.

It usually involves a standards body or accredited organisation auditing your business’s environmental practices.

Assessors measure activities such as carbon emissions, recycling schemes, transport and waste policies against set criteria.

If successful, your business may be awarded a green certification that can be used in marketing, as an aid to recruitment and attracting customers, as well as an incentive to investors looking to invest in green start-ups.

There is a wide range of sustainability certification schemes.

They’re not limited to large corporations with extensive environmental, social and governance (ESG) budgets.

Many schemes are used by start-ups and smaller businesses to establish their environmental values and gain an edge over competitors.

Schemes include BCorp, ISO, WFTO, Green Mark, Fairtrade and the Carbon Trust’s Route to Net Zero standard. Some schemes are suited to a specific sector or business activity.

The benefits of green certification

Obtaining green certification isn’t essential to being a more sustainable business.

However, certification can offer benefits that help companies be greener including the need to assess and monitor the impact of your business operations.

Benefits of green certification differ depending on the scheme and industry but may include:

• Legitimacy – Accreditation status means your start-up will be recognised by international bodies for operating in an environmentally beneficial, sustainable, and ethical way.
• Customer trust – It may be important for your customers, investors, and stakeholders that your business can show your environmental credentials and that you take environmental issues seriously.
• Environmental framework – Environmental certification means you’ll adopt environmental standards and frameworks, providing clarity and focus on what your organisation needs to do to meet statutory and regulatory requirements.
• Improved efficiencies – Your start-up may operate more efficiently and effectively across the board, reducing waste and energy use.
• Competitive advantage – New clients may require an environmental standard such as ISO 14001 as part of a commercial tender.
• Staff engagement – A start-up with environmental values may be more attractive when hiring staff, and employees may be more engaged, leading to less turnover and more productivity.
• Environmental innovation – Achieving certification typically involves changing wasteful processes, potentially leading to innovative business operations such as using renewable energy sources or new packaging materials.

What sustainability accreditation schemes are there?

There are many sustainability accreditation schemes, ranging from independent organisations with national or global recognition to smaller, commercial organisations.

It’s worth investigating different schemes to understand what’s involved, their relevance to your business, and the scheme’s value for your customers and staff.

Here are some of the environmental certification schemes your business may be interested in:

ISO 14001

ISO 14001 is an international standard developed by the International Organization for Standardization (ISO) that focuses on businesses implementing an environmental management system.

It helps monitor and manage an organisation’s environmental policies and practices to ensure operations meet mandatory requirements of ISO 14001 certification status.

According to the ISO 2020 survey, there are 11,627 ISO 14001:2015 certificates issued in the UK.

BCorp

BCorp is a certification scheme offered to businesses by B Lab.

It provides certification for companies that display excellent social and environmental performance standards, accountability, and transparency.

To achieve certification as a BCorp, your start-up will have to undergo a B Impact Assessment and provide a legal commitment to change your corporate governance structure so that you have greater accountability to all stakeholders.

BCorp offers different routes to certification for start-ups, and the cost of the annual certification fee is based on annual sales and business size. A flat £250 fee is paid to BCorp to cover the assessment and verification process.

WFTO

The World Fair Trade Organisation (WFTO) may be a helpful accreditation scheme, particularly if your small business is in the food or hospitality industries.

WFTO offers a Fair Trade Standard that assesses a business’ practices against WFTO’s 10 Principles of Fair Trad (PDF, 596 KB).

It is part of the broader WFTO Guarantee System that aims to combine Fair Trade and social enterprise.

If you wish to join WFTO, your start-up will need to demonstrate a commitment to Fair Trade principles and practices, help disadvantaged communities as a priority and use sustainable practices in processes and the supply chain.

Sustainability accreditation schemes

ISO 14001, BCorp, and WFTO are just three sustainable and ethical accreditation schemes available to your business. Others include:

• Investors in the Environment – a national environmental accreditation scheme.
• Green Mark – an accreditation scheme designed to help teams and businesses make environmental changes.
• The Carbon Trust – offers certification standards in Carbon neutral certification and the Route to Net Zero standard.
• EMAS (EU Eco-Management and Audit Scheme) – developed by the EU, it is designed for organisations to review, evaluate, and improve their environmental performance.
• Fairtrade Foundation – one of the world’s most recognised ethical marks, it offers certification and guidance on developing a sustainable supply chain that supports producer livelihoods.