I wish I was working for a start-up, for I will help shape it’s future in a sustainable way without the hassle of dealing with layers of bureaucracy and detailed ROI analysis on the advantages of sustainability. But the hard fact is that I’m not working for a start-up. So instead of doing what I want, I will write about it so others can take a look at my advise.

In previous posts I’ve wrote about business practices for start-ups and also sustainability. Today I want to merge the two streams into one list of ideas, to implement on the design phase of the new venture. To be green and profitable by Design and not by imposition.

1.- Sustainable working environment.
Yes, you can buy a solar panel and put it on the roof of your office or build a super efficient building. But as a start-up you likely can’t. What you can do is check the energy bill of the buildings or office space you are about to lease. Have someone appraise the efficiency of the windows, walls, HVAC systems, lighting, etc. You may be surprised to find that a simple comparison of these may render an otherwise “nice” office a money pit. Remember that commercial buildings are constructed at the lowest possible cost that complies with regulations . The builder doesn’t really care about your energy bill in the future, so be careful when renting your space.

2.- Energy efficient hardware.
Regardless of your trade, you are going to use some sort of equipment for your business. It can be computers, machines, motors, printers and whatnot. The question is, when the team was deciding the specs of the equipment, did anybody build an energy efficiency analysis into the sourcing process? An electric motor can be very efficient, in the range of 95% or more of electricity conversion into mechanical drive. If you instead buy a 90% efficiency motor because it has lower “price”, you are basically planning to spend more cash in the future in the form of the extra electricity used to action the motor. Simple arithmetic using the extra 5% kWh usage for let’s say 10 years projected life of the motor, times the price per kWh, will tell you a horror story of extra costs.
The company can greatly benefit from a Net Present Value analysis of the equipment, including in the equation the maintenance costs and projected energy bill. For more information on energy efficiency in the workplace you can follow the guidelines of the Energy Star program.

3.- Supplier Management for a green relationship.
Have you asked your suppliers if they use sustainable business practices? If so, what was the answer? Only after you know what your suppliers are doing is that you can truly claim your business to be sustainable. Your own island may look “green” but the entire business environment serving your company may not be. A supplier may be producing some exotic component/product/chemical for you that results in massive amounts of pollutants released or that requires complicated and wasteful packaging or handling. Maybe a partnership with vendor can result in a product that is non-polluting and most likely cheaper.
Are the vendors solely selected on price concerns? Have you analyzed other solutions with more “expensive” vendors and see if they have a lower TCO and more sustainable alternative? Are you pressing your vendors to reduce packaging/energy use/toxic chemical use in the products or services you buy from them?
These and other questions must be asked before you sign that procurement contract. You want a partner for the long term.

4.- Corporate Vision.
None of the above happens without clear corporate vision. A one line statement issued by the CEO can work marvels down the ladder. Just saying “We will have a goal of zero waste for producing this widget within 3 years” will focus everybody into making the widget more effectively. And since waste is equivalent to throwing money down the drain, having zero waste therefore renders the business more profitable by default. In procurement, zero waste could mean an automated purchasing process that everybody understands and uses effectively, sourcing for long term value, tracking spend accurately, measure performance and drive for constant improvement.

These are very basic ideas on how to improve your bottom line By Design and by using procurement as one of the cornerstones of your sustainable business. If you embed sustainable procurement practices from the beginning, your business has much better chances of success while reducing waste and increasing the bottom line.

Carlos Ortiz