11 Sustainable Business Practices to Reduce Emissions

Reducing greenhouse gas emissions is no longer optional; sustainable business practices are now essential for companies aiming to meet their sustainability goals and build resilient, forward-thinking business models.

From switching to renewable energy sources to rethinking supply chains and minimising waste, today’s leading sustainable businesses are adopting environmentally friendly strategies that protect local communities while enhancing long-term profitability.

Integrating environmental, social and governance (ESG) principles helps businesses align with global targets and avoid greenwashing.

In this article, we explore 11 sustainable solutions that support social and environmental responsibility, reduce waste, and accelerate the shift towards a sustainable future.

Why Sustainable Business Practices Matter for Emissions Reduction

Businesses and companies are often amongst the largest emitters of greenhouse gases, with massive CO2 emissions set off from various industrial processes, elements of the supply chain, employee travel, among others, at times leading to dangerously high levels of total emissions.

As climate change worsens, businesses have a critical responsibility to reduce emissions. Large-scale operations significantly impact the environment, making sustainable practices essential.

Carbon emissions trap heat in the atmosphere, causing extreme weather, rising sea levels, droughts, and biodiversity loss. While individuals can reduce their footprint, businesses operate at a scale that can drive real change.

In the UK, large companies (250+ employees, £ 36 M+ turnover, or £ 18 M+ balance sheet total) must comply with SECR (Streamlined Energy and Carbon Reporting) regulations. Beyond legal compliance, carbon management software prevents greenwashing, ensuring transparency and accountability.

By integrating sustainable business strategies with accurate reporting, businesses enhance their brand reputation, meet investor expectations, and future-proof operations against stricter regulations. As consumers increasingly favour eco-conscious brands, proactive carbon management strengthens competitiveness, contributing to long-term sustainable development.

1. Switching to Renewable Energy

All businesses should be looking to pull away from finite fossil fuels, which speed up climate change and intensify global warming. Businesses should look to purchase and install solar panels where possible, which, after an initial hefty cost, pays itself off over some years. Investing in wind power can also generate heaps of renewable energy.

Primarily in the US, RECs (Renewable Energy Certificates) allow businesses to claim that some of their electricity consumption is from renewables, and REGOs operate similarly in Europe and the UK.

More commonly used in the UK, green tariffs allow businesses to buy renewable energy directly, offered by most UK energy suppliers, allowing for a streamlined process.

2. Improving Energy Efficiency in Buildings

There are many benefits, including the reduction of greenhouse gas emissions, to installing lighting that is energy efficient.

These are designed smarter and safer, such as LEDs, which create less heat than traditional lighting. This is safer to use and also lessens the demand on air conditioning.

These bulbs tend to last longer, lessening the need for disposing of the product and replacing it, enhancing transport and manufacturing emissions.

Smarter, modern light systems can bring more control such as with motion sensors and dimming controls. To reduce emissions, it’s advisable to replace outdated, constantly-on overhead bulbs with advanced, energy-efficient technologies.

3. Electrifying Company Fleets

EVs are becoming increasingly accessible and mainstream. Compared to traditional combustion vehicles, they produce zero tailpipe emissions and tend to use electricity from renewable, cleaner sources.

All vehicles used by organisations, such as those delivering products, transporting staff, or providing services, should be swapped to electric vehicles to lower greenhouse gas emissions.

New policies and initiatives such as ULEZ (Ultra Low Emissions Zones), a daily charge for high-emission vehicles driving across London, have seen great success in encouraging EV adoption. The rate of ULEZ-compliant vehicles surged from 61% in Central London (2019) to 97% across Greater London in 2024.

For businesses operating with fleets at scale, with dozens or hundreds of daily trips back and forth, changing from petrol or diesel vehicles to electric vehicles (EVs) makes a substantial difference to their overall carbon footprint.

4. Encouraging Remote or Hybrid Work

Online meetings are a fantastic way to lower business emissions. A single online meeting can mean that 500 employees didn’t have to drive or commute into work, potentially preventing substantial amounts of emissions.

Businesses can invest in high-quality video conferencing technology, providing employees with at-home tech to join meetings from home with ease. Utilise technical tools, CRMs and communication platforms such as Slack that aid seamless digital communication between employees.

To slash emissions, businesses can make employee training virtual where applicable. Utilise online tools, tech and resources to create interactive learning environments that engage and educate employees in the ways of the business while contributing to emission reductions.

5. Implementing Circular Economy Principles

Circular economy business practices are designed to reuse resources through repairing, recycling or sustainable production methods, reducing waste. This actively counteracts overexploitation by reusing resources, not exploiting new raw materials.

Examples of this are IKEA, with replaceable parts in furniture to swap out if faulty rather than discarding the entire piece, lowering the need for energy-intensive manufacturing processes.

Patagonia’s trade-in program encourages its customers to return clothes rather than dispose of them, reusing them or restoring quality for resale.

Another example is Too Good To Go, allowing restaurants to dispose of their excess or unneeded stock at very low prices to consumers who collect it, saving it from going to waste.

The UK is heading in the right direction with legislation and incentives like the Circular Economy Package (which sets targets for waste reduction and product reuse) or the Plastic Packaging Tax (which charges businesses for using less than 30% recycled plastic in packaging).

Beyond the environmental benefits, this is key for us economically. The world’s leading economies right now (like the US, China, or Germany) are not secure long-term. They rely on finite raw materials and fragile global supply chains ,which in 10–20 years could very well become too costly, volatile, or depleted to sustain current levels of production and consumption.

6. Optimising Supply Chains for Lower Emissions

Supply chain carbon accounting is both a subset of carbon accounting as well as a specialised area. While general carbon accounting encompasses three scopes, supply chain carbon accounting revolves primarily around Scope 3 emissions, covering upstream and downstream activities, analysing emissions from raw material extraction to end-of-life disposal.

Supply chains can be managed in a way that best lowers greenhouse gas emissions. Emissions caused by any cog in the supply chain should be monitored, tracked and reported to identify the biggest contributors and areas where reduction targets are most needed.

For example, sourcing locally reduces emissions from transport, which in the long term can save massive emissions depending on a company’s age. Emission-dense suppliers can be swapped for green suppliers, who strictly practice forward-thinking and sustainable operations.

7. Reducing Business Travel

There is a substantial difference between a short-haul flight for a face-to-face meeting simply for the sake of being in person and hopping onto a video meeting with one click, while largely to the same effect.

Virtual meetings, where possible, allow businesses to outwardly present their lower, conscious carbon footprints. In contrast, businesses that frequently fly their staff must effectively offset their emissions to avoid disrupting their public image.

Examples of this are rewetting projects, re/deforestation projects, offshore wind farm projects, or funding into any nature-boosting schemes to the degree that travel emissions are being met or over-exceeded.

8. Using Sustainable Packaging

To reduce emissions, businesses should prioritise sustainable materials with high recycling value and minimal environmental impact, helping to divert waste from landfill and supporting circular resource use.

A business supporting suppliers who buy purely fair trade and ethically-sourced products is a great way to reduce emissions and allows for a mutual commitment to sustainability and mitigating climate change.

Outlining a clear code of conduct that suppliers must adhere to is a simple tactic to ensure that all business materials, from tiny to huge, are ethically sourced and will not contribute heavily to a business’s greenhouse gas emissions.

Many science-based targets call for supply chain optimisation by cutting inefficiencies like unnecessary travel, wasteful processes, excessive water use or inefficient packaging.

Sustainable businesses usually involve local suppliers, virtual meetings, reducing water consumption, switching to sustainable packaging companies, lowering emissions and saving money in the long run.

9. Minimising Waste Through Recycling and Reuse

In product design, the goal should be to avoid landfill at all costs.

Recycling is a way to make sure that less goes to waste or landfill, instead giving materials and items a second life. Recycling can be achieved in many ways, from large-scale to small-scale.

In-house recycling should be the standard, with stations for recycling paper, plastic, metals and electronics. Employees should be encouraged and incentivised to recycle and utilise these stations.

Industrial waste, by-products and scrap materials should be properly recycled where possible, such as by partnering with recycling companies.

Recycling efforts can be tracked and managed to ensure targets are met and waste problems do not worsen.

This combats the need for energy-intensive production processes and lowers emissions from manufacturing as well as waste disposal systems.

A staggering proportion of our everyday products are designed to go straight to landfill, created with zero chance of a circular lifecycle. Examples include crisp packets, single-use coffee cups, disposable razors, and toothbrushes used and then disposed of.

10. Setting Science-Based Emissions Targets

Science-based targets are quantified, time-bound goals set internally to reduce a company’s greenhouse gas (GHG) emissions.

For example, a tech company hitting net-zero using 100% renewable energy sources by 2030 or a manufacturing company achieving a 50% reduction in Scope 1 & 2 emissions across all operations by 2035.

One of the first companies to utilise the SBTi (Science-Based Targets initiative) was Ørsted. By 2021, they cut carbon intensity by 87% against their 2006 baseline, largely by changing fossil fuel operations to renewable energy.

Since then, there are now over 10,000 companies committed to different types of science-based targets, ranging from simply setting near-term reduction targets to company-wide emission neutrality by mid-century.

Science-backed, certified sustainability claims are an excellent form of company branding, allowing businesses to stand out from the crowd as forward-thinking, climate-conscious operators.

This means companies with SBTs are more likely to secure long-term customer loyalty.

Sustainable business also strengthens investor relationships, encourages funding, and can lead to tax incentives and governmental grants for successful carbon reduction.

They then easily meet investor demands and continuously demonstrate long-term viability.

11. Tracking Emissions with Carbon Accounting Software

Carbon Accounting (CA) is where a business hires an in-house consultant, develops in-house systems, or most commonly uses a specialised Carbon Accounting software like Gaia’s.

In the same vein as financial accounting, it allows them to track, measure and report business-wide greenhouse gas (GHG) emissions.

It leads to a widespread shift in business activities, identifying inefficiencies in the supply chain, enacting social responsibility and encouraging net zero. It’s becoming more widespread with the enhancement of legislation combined with an intensifying emphasis on corporate environmental responsibility.

Roles such as ‘Head of Sustainability’ and ‘ESG Officers’ are now common, with a sole focus on achieving and maintaining a company’s environmental targets, when 10 years ago this was rare. The pressure on companies to address sustainability proactively is only growing.

Carbon Accounting allows a business to understand its carbon footprint and exactly what is contributing to carbon emissions, crucially recognising the strongest contributors and determining key areas to reduce.

Following the GHG protocol, Scope 1 covers direct emissions, Scope 2 covers indirect emissions from energy, and Scope 3 covers other indirect emissions produced across the value chain.

Carbon Accounting allows for corporate transparency, and to project to their clientele, audiences, stakeholders and employees that they are socially responsible for their carbon footprint.

One person can make a positive environmental impact by reducing carbon emissions, but the scale at which businesses operate holds immense potential to significantly help preserve the planet’s atmosphere.

‘Large’ companies in the UK (with over 250 employees, £36 million in turnover, or £18 million in balance sheet total), must meet Carbon Accounting standards by law, under the SECR (Streamlined Energy and Carbon Reporting) framework.

Beyond this, Carbon Accounting crucially prevents greenwashing and other misleading claims regarding environmental responsibility, with optimal reduction efforts then streamlined reporting tools for transparency.

Common Mistakes Businesses Make (and How to Avoid Them)

Sustainable business practices cover a vast spectrum from energy use to supply chain management, leaving lots of room for inefficiencies or greenwashing.

An example of this is setting too vague targets of “reducing emissions” or “going green” without quantifiable amounts updated in a transparent manner. Instead, science-based targets must be set, with verifiable certifications and recurring targets.

Beyond this, only tracking direct and indirect emissions is the easiest route; however can fail to target the majority of emissions. Supply chain emission tracking is granular, nuanced and resource-intensive; however essential to uncovering the full carbon footprint and driving meaningful reduction across the entire business.

Case Studies: Real Businesses Reducing Emissions Effectively

IKEA – Climate Positive Target

46.6% of IKEA’s emissions are from the production of their raw materials such as cotton and wood, followed by product use at home at 15.9%, then customer travel and home deliveries at 8.4%.

IKEA GreenTech was established in 2008, with €50 million to be invested into sustainable tech and renewable energy, which followed into 2012 with focus on solar and wind power.

In 2016 IKEA launched their ‘People & Planet Positive’ strategy which pledged to become ‘climate positive’ by 2030 (removing more carbon than the company emits), which was later changed to becoming net zero (balancing the two) by 2050. This was a more realistic, scientific approach.

Tesco – Reducing Food Supply Chain Emissions

With 4,942 stores worldwide, a significant portion of Tesco’s emissions stems from energy use in stores, offices, and distribution centres. Additional emissions arise from their supply chain, including the production, processing, and transportation of goods as well as logistics operations.

In 2009, Tesco became the first business globally to declare a goal of becoming a zero-carbon business by 2050 (zero-carbon = carbon-neutral = net zero emissions. Definitions can fluctuate but remain broadly the same, so check company specifics if needed). In 2017, they committed to sourcing 100% of electricity from renewable sources by 2030.

As of 2023, Tesco reported a 61% reduction in absolute emissions from operations compared to 2015, surpassing their 2025 target of 60%, and achieved their goal of sourcing 100% renewable electricity.