Why Capital Planning Is A Decisive Factor Of Sustainability

Julie Starr • June 27, 2022



Creating a sustainable business is no easy task. Many entrepreneurs struggle to build a green business that preserves the environment. Indeed, environmentally-friendly best practices tend to be less friendly on the business budget. Sustainable products are likely to be more expensive to make, and they often require more energy as part of the manufacturing process. Additionally, organizing an effective supply of sustainable materials and tailoring profitable green business practices can be tough challenges for small businesses. 

According to a Harvard study, the cost of building a sustainable business in the United States is about $500 billion every year . It is the minimum cost to prevent fossil fuel burning, carbon emissions, and unethical practices. Most companies are not in a position to commit to this level of expenditure. While many businesses choose to move toward sustainable practices and strategies gradually, the International Energy Agency estimates that $45 trillion will be required to introduce green operations into every single company. 

The bottom line: Sustainability is not necessarily a cost-effective choice for a company. While it doesn’t mean that businesses can’t save costs by embracing sustainable decisions, the cost of sustainability itself is not negligible. Does it mean, however, that cost is the main issue that companies will face when they add a sustainability goal to their strategies? 

The answer is no. Of course, building green operations and activities is expensive. Yet, business owners do not struggle with making sustainable investments per se. The most important challenge to making sustainability a viable solution for the business is planning capital use and availability in the long term. There’s nothing t o gain from committing to a single sustainable decision when the company doesn’t prepare for prolonged investments, returns, and activities to maintain its sustainable direction. 

Only the right customers are willing to pay more for sustainability

Sustainable products and services are more expensive than mainstream alternatives. Yet, as many customers have proven, price is not necessarily an obstacle when it comes to selling green products. The desire to embrace a green lifestyle and reduce environmental impact is present among all generations of shoppers. However, Millennials, Generation X, and Boomers are the customers more likely to support eco-friendly companies as they tend to have more disposable income to spend. The audience for green products and services is small, compared to other products, but as it increases year on year. Indeed, the demand is low compared to other offerings, yet the audience group for sustainable solutions is growing steadily. 

With the right communication and marketing strategy, green companies can manage to attract eco-conscious customers and grow their revenues. Sustainable companies can dedicate their content to sharing their eco-friendly strategies and aspirations for the future, showcasing the relevant certifications, and exchanging best practice tips with their network. With more and more green businesses entering the market, your marketing presence becomes an essential part of your brand identity. Therefore, making sustainability a profitable decision begins with preserving market share and reaching year after year. 

Find protective solutions when plan A fails

As mentioned, creating a sustainable business is an expensive strategy that includes your equipment investment, technology choice, and team. 

Picture a situation where the business decides to implement a new tech solution at the operational level to reduce its environmental impact. The solution is a success, but it requires specialist training to manage effectively. Unfortunately, the individual responsible for its implementation goes unexpectedly missing as a result of a long-term medical condition. Without an adequate key man insurance policy in place to protect the strategy and fund the next activities, it is likely the business would be forced to abandon the sustainable solution to save training costs and remain profitable. 

Insurance policies are an essential protective shield for your company. They can prevent loss in the event of injuries in the workplace, customers’ complaints, or even theft. Yet, more importantly, these policies serve a crucial purpose by enabling the company to maintain its long-term strategy. As sustainability is not a one-off investment but a permanent change of direction, operations, and activities, companies must consider how potential risks could affect their strategies. The monetary loss a company sustains through a liability or personal injury case, for example, could contribute to abandoning sustainable activities to focus on low-cost and fast return strategies. That’s precisely why insurance policies are crucial to preserving capital funds for sustainability in businesses, regardless of what the future might bring. 

Investing today to save money tomorrow

Introducing environmentally-friendly practices within a company is unlikely to have an immediate positive return. Sustainability investments can save money, such as investing in renewable energy , but corporations must be willing to lose money first before they can recoup their losses. 

Indeed, switching to renewable energy will reduce the business energy bills. But, the initial cost of installing renewable generation resources for a commercial structure, such as solar panels, varies between $132,000 and $430,000. Needless to say, even with monthly savings, it will still take the business many years to recover the initial investment. Therefore, the sustainable strategy must consider ways of reducing the financial impact of the investment to keep the business afloat. 

Thankfully, there are still plenty of environmentally-conscious financing opportunities for companies. Bringing eco-friendly equipment to the business can bring tax advantages, such as the ability to reduce tax payments. Some federal and regional institutions also provide grants or partial financing options for green solutions, making them more accessible to small businesses. More often than not, it can be beneficial for companies planning substantial sustainability investments to work closely with a financial and accounting advisor who can help with:

  • Funds gathering
  • Tax deduction
  • Green loan management
  • Environmental grant applications 

Failure to prepare for the long-term financial consequences could put on hold all sustainable projects for small businesses. 

Redefining the expected gain

The most important question a business must ask when approaching sustainable strategies is not how long before returns become visible but what types of returns can be expected. Indeed, eco-friendly operations and activities may not immediately deliver a financially quantifiable gain. As seen with renewable energy, it will take many years before savings on energy bills recover the cost of the initial investment. So what is the gain of sustainability for businesses, and what difference does it make?

Sustainable decisions have a positive environmental impact, which is immediately measurable. Beware; however, measurable is not synonymous with visible. For instance, a business can instantly reduce its carbon footprint with the installation of solar panels. But, the local population may not see the positive impact on the wildlife and the air quality for several months and years. That’s precisely why it’s crucial to keep track of sustainable efforts and share the results with your audience group and shareholders. 

Customers and investors also prefer to spend their money on green businesses. So, it makes sense to focus on sustainable activities as part of brand positioning and reputation protection. In the long term, environmentally-conscious companies are more likely to remain relevant in the future market as long as they can manage to secure funds until sustainability drives tangible profits.  

Sustainability is a slow progress

Unfortunately, sustainability is a slow process that needs time:

  • To implement
  • To measure
  • To generate profits

There’s no magical button companies can press to go from 0 to 100 when it comes to sustainability. The first challenge a business faces is to change the established habits of employees and customers. Something as simple as reducing paper waste by asking employees not to print documents can lead to frustrations, a loss in productivity, and slow completion as people need to learn new work routines and tools. So, it’s not so much a matter of immediately saving costs through the elimination of printing. Removing the printer from the office incurs an initial loss, which makes it even harder to motivate employees. 

Ultimately, because sustainable strategies can introduce new methods that clash with existing habits, the audience can be slow to accept transformations. First reactions may be negative, which slows down the progression of sustainability in the business world. Businesses must not only prepare for the initial investment but also for additional losses before they can measure the benefits of eco-friendly strategies. 

Unlocking green funds is not easy

How does a small company find the money to make sustainability its new operational reality? Applying for commercial loans is no easy process. Many companies are not eligible for conventional loan applications as they may not meet credit score criteria or may not have been in business for long enough. 

Similarly, grants may be difficult to obtain for small businesses and startups. Indeed, grants tend to provide partial financing for sustainable transformations, which means the company must still pay the remaining costs. 

Crowdfunding opportunities can be tricky too. With thousands of companies turning to crowdfunding platforms to finance growth and strategic changes, it is a competitive sphere where many fail to secure the funds they need. 

In conclusion, it is important to understand that sustainable strategies require appropriate planning to remain viable. Financing the implementation of eco-friendly technology or carbon-neutral operations is only one of the challenges a business has to overcome. Sustainability is a long-term project that needs extensive capital planning to elevate a company and deliver a measurable, quantifiable, and visible impact. 

A Greener Supply Chain with Micro Fulfillment

By Julie Starr • May 23, 2025
A sustainable supply chain is made possible with some major shifts and minor changes that you may not consider at first. One of these is micro fulfillment, where strategically placed warehouses provide streamlined services to a smaller area. So, what are some of the benefits of changing your logistics? From consolidated deliveries to minimal eco-impact, here are a few. Closer Customer Proximity There are a few ways that micro fulfillment centers are revolutionizing the courier industry. Reduced emissions, local sourcing, and support for urban stability are just three of the many examples. Compact logistics are quickly becoming a solution for businesses that want to make a difference, and through small warehouse space for rent , as and when needed, environmental footprints are diminishing as companies deliver services and goods to a smaller customer area. Consolidated Delivery Options Efficiency is everything in business, but it is even more critical when a company is looking to reduce the environmental impact of its operations. Through a micro-fulfillment system, a business is able to reduce the overall number of trips that a courier has to make. With consolidated deliveries concentrated in a smaller geographic area, there are many more options available that contribute to a lower impact, including efficient use of fuel for lower emissions. A Greener Supply Chain with Route Efficiency A company can make many changes when becoming the green link in the supply chain for a healthier logistical operation. However, an average home delivery round for a standard courier service is 50 miles, with 0.42 miles between each drop-off, producing 181g of carbon each. Focusing on a smaller area through micro fulfillment reduce the associated issues with couriers: Being closer to delivery routes reduces the need for extra shipping options. Electric delivery vehicles can be used as there is no need to recharge them. Knowledge of the area helps with routes as drivers can avoid congested areas. Lower Environmental Impact Of course, all efforts to go green and become more sustainable through logistics are to reduce the environmental impact that a business has on the area. Micro fulfillment contributes to this in a way that a wider operation cannot. Shorter routes and enhanced inventory management actively reduce waste. There is also much less energy used, as micro fulfillment centers are designed to be energy-efficient, and EVs and less transport contribute to emission reduction. Enhanced Socioeconomic Benefits There is also a social and economic impact of a business. An enhanced and more sustainable business using local micro fulfillment centers instantly creates more jobs, helping to prop up the local economy. Of course, the efficiency of this type of logistical operation also results in happier customers, increasing the chance of repeat business. From a business perspective, you demonstrate a commitment to ongoing sustainability , appealing to eco-conscious customers. Summary Being closer to customers for delivery helps create a greener supply chain when used with micro fulfillment centers. Local couriers and employees also know the area and can avoid congested areas for streamlined operations. However, there are also social and economic benefits such as job creation, improved customer experiences, and enhanced brand reputation.

Sustainability in Ecommerce: 3 Ways to Make Progress Where It Matters

By Julie Starr • May 21, 2025
Sustainability is no longer a nice-to-have—it's essential. That’s true across every industry, and ecommerce is no exception. But let’s be honest: building a more sustainable ecommerce business isn’t always straightforward. From packaging to supply chains to last-mile delivery, the challenges are real—and often feel like they’re outside your control. But here’s the good news: sustainable ecommerce is absolutely possible. And it doesn’t have to be all or nothing. Small, strategic shifts can make a meaningful difference—not just for the planet, but for your customers and your brand’s longevity. Here are three actionable ways you can move the needle toward a more environmentally responsible ecommerce business. Choose Sustainable Packaging That Works for People and Planet Packaging is often one of the most visible and wasteful—aspects of ecommerce. From oversized boxes to plastic fillers, the impact adds up fast. But it doesn’t have to. Thoughtful, sustainable packaging design can dramatically reduce your environmental footprint. Start by right-sizing your shipments to reduce excess material and emissions. Opt for recycled, recyclable, or compostable materials that align with circular economy principles. Better yet, one option is to design custom boxes with sustainable materials, for example. These custom packaging solutions eliminate unnecessary layers while enhancing your brand’s presentation. These aren’t just more sustainable choices, they’re smarter ones. Today’s customers care about where materials come from, and where they end up. Your packaging can reflect your commitment to both. Partner with Purpose: Choose Sustainable Suppliers Your supply chain is an extension of your brand and one of the most powerful levers you have to reduce your environmental impact. You could end up using more than a few suppliers when you’re running an ecommerce company . It’s always worth making sure these are as sustainable as possible . While you may not control every aspect of your suppliers’ operations, you do control who you choose to work with. Prioritize suppliers who share your commitment to sustainability. Look for transparency in sourcing, third-party certifications, and a clear track record of environmental and ethical practices. Ask the right questions: Are their materials responsibly sourced? Do they minimize waste and emissions? How do they treat their workforce? Choosing partners who align with your values not only improves the sustainability of your products—it strengthens your brand’s integrity and resilience. When your supply chain reflects your mission, it creates trust and long-term value across your business. Lead with Impact: Promote Environmental Awareness Sustainability doesn’t stop at your supply chain. As an ecommerce business, you have a unique platform to elevate environmental causes and inspire meaningful change within and beyond your operations. Sometimes, it’s just a matter of highlighting and supporting various sustainable initiatives and causes around the world. One powerful way to do this is by supporting organizations and initiatives that align with your values. Whether it’s donating a portion of your profits, partnering with mission-driven nonprofits, or amplifying important causes across your website and social channels, your advocacy matters. By shining a light on solutions and inviting your customers to participate, you strengthen your brand’s purpose and build a community rooted in shared responsibility. This isn’t just good for the planet; it’s good for business. Sustainable ecommerce is entirely possible. With the right mindset and a few strategic shifts, your business can lead with integrity, reduce its footprint, and become part of a much-needed transformation in the digital economy.