07-04-2025
What Can Mid-Size Businesses Do About Climate Change?
Co-Founder and Director at Cool Effect, Dee Lawrence is backed by decades of experience in the carbon credit industry.
Maybe shareholders are pressuring you, employees are asking questions or you've just been handed sustainability responsibilities in human resources. Whatever the reason, taking meaningful action on climate change as a mid-size business can feel overwhelming. How can your business mitigate climate change in a meaningful way?
First, define your objectives. Are you trying to achieve net zero, a science-based target or do you wish to plant trees or protect local waterways? Does your corporate philanthropy align in some way that provides direction toward climate solutions? If you oversee the supply chain, does it provide some clues about areas where you may want to concentrate to reduce emissions or waste?
Aligning sustainability with your core business strategy also helps engage stakeholders. If customers and investors see a clear link between your climate efforts and your business mission, they'll be more likely to support your initiatives. Look for industry benchmarks and best practices to help guide your decision-making.
Once you've aligned your climate goals with business strategy, here's how to get started in taking meaningful action as a mid-size business.
The simplest way to cut emissions is to use less energy. Implement a 'lights out' policy in the office. Then review the source of your electricity. Historically, all power came from coal, gas or burning other fossil fuels. That's no longer the case, so contact your power company or do the research to see if there is a greener alternative. Green power can substantially cut business emissions.
It's an easy decision if you understand that burning a pound of coal releases approximately 2.07 pounds of CO2 per hour, depending on the type of coal burned. When coal is transported across the country, the dust blows into land and water ecosystems, leading to crop, water and air pollution with toxic elements. Yet, coal still accounts for about 16% of U.S. electricity.
With 90% of new electricity generation capacity coming from solar and wind, simply requesting renewable energy increases demand and accelerates the rate of adoption.
Beyond electricity, consider other ways to improve efficiency. Upgrade office lighting to LED bulbs, install motion sensors in infrequently used areas and invest in energy-efficient appliances. If your business has a fleet, transitioning to hybrid or electric vehicles can significantly reduce emissions.
Beyond energy, small operational changes add up. Offer meatless food choices at company events and lunches, optimize employee commuting and improve office recycling. Encourage employees to reduce waste while traveling, such as reusing towels and keeping bedding unchanged during hotel stays.
Look at procurement policies as well. Can you source office supplies and equipment from sustainable vendors? Can packaging materials be minimized or switched to recyclable options? Sustainable purchasing decisions contribute to long-term impact.
Consider implementing a Green Team within your organization—an employee-led group focused on sustainability initiatives. This can help engage staff, generate new ideas and ensure follow-through on green policies.
Travel is skyrocketing, both for personal and business use, with the International Air Transport Association projecting that a record 5.2 billion passengers will take to the skies in 2025. Air travel emissions are surging, and while airlines are supporting the development of Sustainable Aviation Fuel (SAF), SAF production remains minuscule in comparison to the demand for jet fuel. Limit business travel to essential trips. Virtual meetings have become standard practice and can often replace in-person visits. If travel is necessary, prioritize direct flights and economy class to reduce per-person emissions.
If you must travel, compensate for that travel by purchasing high-quality carbon credits that fund carbon projects reducing emissions by planting trees, turning waste into energy or managing forests, among other activities. However, not all carbon credits are created equal and quality can be difficult to assure, so reduce risks by looking for credits with integrity ratings. Some carbon credits provide additional benefits beyond carbon mitigation or sequestration that fit well with corporate policies. If the project is community-based, understand how the community has been engaged in the project and how they benefit from the project.
Purchasing carbon credits for air travel is a measurable way to determine your impact on climate, it's easy to communicate internally and credits can be budgeted for. The quality of the credits you purchase is important, as consumer travel programs are the second most scrutinized for greenwashing.
If you do purchase carbon credits for air travel, depending on the quantity, a contract may be involved. It will be important that you ask that the credits purchased be retired to prevent resale. Payment terms will often be shorter than the typical 60-day procurement terms. Price can vary according to the project type and issuance date. Ask about middleman fees, if any.
Now that you've taken these small steps in getting started, ensure progress by tracking and measuring your sustainability efforts. Set benchmarks and key performance indicators (KPIs) related to energy use, waste reduction and emissions. Regularly reviewing your impact will allow you to identify areas for improvement. Are your energy savings meeting expectations? Are employees engaged in sustainability initiatives?
Transparency builds trust. Sharing updates with employees, customers and investors not only demonstrates accountability but can also inspire others to take action.
The only way we will solve the climate problem is by coming together to take small actions that cumulatively can have an impact. No business can do everything, but every business can do something. Start with what's feasible, build momentum and expand your efforts over time. The path to sustainability is a journey, and the most important step is the first one.
Forbes Nonprofit Council is an invitation-only organization for chief executives in successful nonprofit organizations. Do I qualify?
