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  • Climate, Energy and Sustainable Finance

Small businesses are increasingly committed to Sustainability

  • Posted in 19/09/2018

Practices that reduce energy and water consumption, separation and correct disposal of solid waste, hiring local labor and suppliers, supporting communities around the company and commitment to sustainability are some of the sustainable actions that small businesses are adopting across the country, according to the study. Engaging Small Businesses in Sustainability and the Sustainable Development Goals (SDGs) conducted by the Sebrae Center for Sustainability. This is the first national survey on the behavior of small businesses in sustainability.

According to the research, the reasons that lead them to adopt sustainable practices – such as energy efficiency, efficient use of water, waste management, support for the local community, among others – are: environmental preservation (67%); cost reduction (20%); marketing and advertising (3%); exclusively to comply with legislation (2%); and other reasons (7%). 

Small businesses make up the vast majority of companies in Brazil: 98.5% of the enterprises are Microenterprises (with revenues up to R$$ 360 thousand/year); Small Businesses (EPP, with revenues above R$$ 360 thousand up to R$$ 4.8 million/year) and Individual Microentrepreneurs (MEI, with revenues of R$$ 81 thousand/year). Together, they generate 55% of formal jobs and 45% of the wage bill and are responsible for 27% of the Brazilian Gross Domestic Product (GDP) (DataSebrae and Anuário do Trabalho 2016).

The methodology adopted in this research was quantitative and the random and stratified sampling was based on the service registry of Sebrae Nacional. In total, 1,887 entrepreneurs from Microenterprises (ME) and Small Businesses (EPP) from the four main economic sectors (agriculture, industry, commerce and services) were interviewed in all states and the Federal District, from 11/24/17 to 12/15/2017.

The following topics were addressed with the businesspeople interviewed: sustainability; efficient use of energy; efficient use of water; solid waste management; social development; purchasing policy; commitment; and opportunities. The responses by sector are also presented in each question in the survey.

ODS

For each question, the results were analyzed to also indicate which of the 17 Sustainable Development Goals (SDGs) Brazilian small businesses are contributing to achieving in Brazil. The SDGs are part of the United Nations (UN) 2030 Agenda, adopted by 193 member countries in 2015 in New York. Brazil is a signatory to the 2030 Agenda. The 17 SDGs are divided into 169 targets.

By adopting sustainable practices, small Brazilian businesses are contributing mainly to the SDGs: 8 (Decent work and economic growth); 10 (Reduced inequalities); and 12 (Responsible consumption and production).

Several practices also dialogue with other SDGs, namely: 1 (No Poverty); 3 (Health and Well-being); 6 (Water and Sanitation); 7 (Clean Energy); 9 (Industry and Renewal); 11 (Sustainable Cities and Communities; 14 (Life Below Water); 15 (Life on Land); and 17 (Partnerships for the Goals).

 

Main results

Among the results of the research Engagement of Brazilian Small Businesses in Sustainability and the SDGs, the following stand out:

Sustainability

. 93% are committed to sustainability

.54% apply isolated actions, sporadically, without planning

. 29% have some sustainable practices planned

. 8% sustainability is the heart of the company

. 8% have a project with structured practices and monitoring of results

. 1% does not apply sustainability in business

Social Development

. 85% support local community

. 93% hire local labor

. 80% give preference to local suppliers

. 54% encourage employees to volunteer for philanthropic and social projects

. 52% participate/support community cultural/educational activities

. 25% invest in preserving squares and public spaces

Efficient use of energy

. 97% of respondents replaced incandescent bulbs with energy-saving fluorescent and LED bulbs

. 74% have set times to turn equipment on and off

. 68% exchange equipment or machinery for more efficient ones

. 28% installed presence sensors in the environments

. 7% use of renewable/clean energy (solar, wind, biomass and others)

Efficient use of water

. 60% declared having some practice to save water use

. 48% installed toilets coupled with dual flush

. 45% reuse water (sinks, showers, etc.) for non-potable purposes (washing floors, watering plants and gardens, washing cars, etc.)

. 29% capture rainwater

. 25% installed taps with automatic actuation

. 13% treat and reuse effluent water

Solid waste management

. 81% adopt some initiative for separation and correct disposal of waste

. 87% separates non-recyclable (wet) waste from recyclable (dry) waste for recycling

. 71% separates hazardous waste (lamps, oil, batteries, electronics) for colleagues by specialized company

. 56% donate some types of waste to artisan groups

. 31% have an integrated company waste management policy

. 23% compost organic waste (fertilizer)

Shopping

. 42% seek more sustainable materials and only buy if it does not affect the company's costs

. 28% price is the most important factor when purchasing

. 24% are unaware of suppliers of sustainable products in the region

. 6% only buy sustainable materials

Commitment and motivation

. 93% declared themselves committed to the concept of sustainability

. 67% seek environmental preservation and social justice

. 20% to save/reduce costs

. 7% other reasons

. 4% to promote the company (marketing and advertising)

. 2% exclusively to comply with legislation

Opportunities

. 91% consider that new opportunities and business models are emerging from sustainability.

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