Introduction to Sustainable Business Practices

As the world faces climate change and a global environmental crisis, businesses worldwide are increasingly recognizing the importance of sustainability as a core part of their strategy. Embracing sustainable practices isn’t just good for the planet; it’s also beneficial for a business’s reputation and long-term success. In Indonesia, more and more companies, especially in sectors like hospitality and food & beverage (F&B), are transitioning to greener business practices. But what exactly are sustainable business practices, and how can companies start implementing them?

Sustainable business practices are an approach that integrates environmental, social, and economic principles into every part of a business’s operations. The main goal is to minimize negative impacts on the environment while creating value for society and advancing the company’s economic stability. These practices can involve various actions, such as reducing plastic usage, conserving energy, and committing to sustainable resources like certified palm oil.

“Sustainable business isn’t just a trend; it’s a necessity for a better future,” said a participant in the Sustainability Action Plan Assistance program. As consumer awareness of environmental issues grows, businesses that embrace sustainability gain a competitive advantage by attracting eco-conscious consumers.

Several reasons highlight why sustainable business practices are increasingly essential in today’s world:

Sustainable practices help businesses reduce greenhouse gas emissions and their carbon footprint. For example, using renewable energy or implementing energy-saving measures can help decrease emissions that contribute to climate change.

Hotel Santika Bogor successfully reduced its daily electricity usage by 60% (from Rp 212,976 to Rp 85,190) after installing 72.7 m² (22 glass panels) of window film in the meeting room to address temperature issues and improve suboptimal AC operation.

Today’s consumers are more aware and environmentally conscious. They prefer products and services that are produced responsibly. Businesses that are transparent and committed to environmental stewardship will appeal more to these consumers.

According to a Booking.com report, 78% of global travelers intend to stay in sustainable properties at least once in the coming year, and 46% have already stayed in sustainable accommodations in the past year, primarily motivated by a desire to help reduce their environmental impact (42%).

Adopting sustainable practices can enhance a company’s public image. Many companies have seen an increase in reputation and public trust after committing to strong sustainability efforts. According to a Booking.com survey, 57% of travelers feel better if the accommodation they book has a sustainable certification.

In Indonesia, sustainability reporting is now mandatory for listed companies and specific sectors. This means more businesses will adhere to sustainability standards set by the government. Sustainability reports have been mandatory for financial institutions and public companies since 2019 and for listed companies since 2020; however, implementation was delayed to 2021 due to COVID-19. In the second year, 88% of listed companies in Indonesia reported their 2022 sustainability reports. These reports are crucial as a step for companies in ESG reporting, reflecting their strategies for climate risk, stakeholder engagement, and improving ESG performance.

Companies don’t have to make major changes all at once to start their journey toward sustainability. Here are a few simple steps businesses can take:

The first and most important step is to assess how current business operations impact the environment. This includes reviewing energy use, waste management, and the environmental impact of raw materials. From here, companies can identify areas that need improvement.

Establish realistic and measurable goals to achieve within a set timeframe. For example, set targets to reduce plastic usage or increase the use of local and sustainable raw materials.

Begin with simple actions, such as replacing plastic packaging with eco-friendly materials or switching to energy-efficient LED lighting. Small steps can make a big impact when implemented consistently.

Educate employees on the importance of sustainability and provide them with opportunities to contribute to the company’s green initiatives. Also, engage consumers by informing them about how they can support the company’s sustainable practices.

Track each small change to measure its effectiveness. For example, if your business implements energy-saving measures, monitor utility bills to see if there’s a reduction in usage.

In the recent Sustainability Action Plan Assistance program, several companies in Jakarta and Bandung successfully implemented significant sustainability steps. For instance, some hotels have started using certified palm oil, local raw materials, and biodegradable packaging. Coffee shops and other F&B businesses have reduced single-use plastic and switched to organic-based packaging.

Their successes demonstrate that, while the journey to sustainability isn’t always easy, there are positive outcomes for both the company and the environment. These businesses have also seen increased customer loyalty and an improved reputation in the public eye.

With environmental challenges becoming more urgent, now is the time for businesses to begin their sustainability journey. Sustainable business practices aren’t just a way to meet consumer demand; they’re also essential steps to preserve our planet for future generations.

No matter the size or sector of your business, every small step toward sustainability will have a big impact. Let’s start making positive changes and be part of a global solution for a better environment.