Greg Pilley has spent most of his adult life on the green. After earning a degree in marine conservativism, he opened a brewery in 2006 that produced organicIPAs, lagers, and exotic varieties. Pilley spent a lot of time poring over data regarding the source of raw materials and the energy consumption of his processes in order to get eco-friendly credentials for his venture. He says it was a six-month exercise.
Consumers are becoming more concerned about the environmental impact of their purchases, and a company that has green claims verified and certified by a trusted organization can gain a competitive edge. For small and medium-size businesses that struggle to find the resources, time, or skills to wade through the complex bureaucratic processes, the intensity of the process can be overwhelming, and the costs can be prohibitive. A survey by the British Chambers of Commerce found that only a small percentage of businesses measure their carbon impact.
Greg Pilley is the managing director at the brewery.
B Corporation, a global gold standard for companies that aren't in an obvious green sector, was Pilley's goal for his brewery to be recognized. Pilley advises companies to look to industry bodies and networking hubs for support if they want to make their practices more climate-friendly. The Made in Britain green growth program, the Confederation of British Industry, and the Heart of the City charity could all be included.
Even with emerging resources, it is difficult to gauge the environmental impact of a business model. The data hurdles will only get worse as governments push for net-zero pledges. SMEs are not a problem. James Vaccaro, head of Re:Pattern and an adviser to policymakers, says they come in different shapes, sizes and flavors. There are no boxes for them to tick.
Madeleine White is in the early stages of a B Corp application for her vegan and plastic-free cosmetics brand, and she says getting the certification sucks up valuable time. She was eager for outside accreditation of her product to insulate her against the accusation of greenwashing, after getting the business off the ground. She needs to know the origin of all materials and the manufacturing processes. It gets very confusing when you work with a lot of different suppliers.
Financial institutions are coming up with ways to support small businesses. Some companies looking to achieve B Corp status are helped by the NatWest Group's accelerator program. Moody's Corp. has created a tool that lets investors and companies gauge their environmental impact.
Others are using technology to bridge the divide. Dayrize, an e-commerce platform specializing in sustainable fashion and beauty products, scores each individual item on its website. Chief Operating Officer Austin Simms says that when businesses can't provide the required information, it uses a combination of external datasets and trends observed among its roughly 450 member companies to compensate.
The bank that supported the crowdfunded community bond for the Stroud Brewery is a sustainable bank that relies on credentials like B Corp but isn't satisfied with companies just getting through on the minimal score. A database of a company's sustainable reporting is created by the bank and can be shown to prospective clients, customers, and investors. Bevis Watts, who heads up the U.K. branch of Triodos, says he is slightly skeptical about the future of banks and businesses.
Despite the cumbersome process, Pilley doesn't regret pursuing the B Corp membership. He says that the status has helped him approach major retailers about carrying his products. He wanted a score that reflected his efforts across the business. It is one thing to measure and try to do something as a marketing exercise, but it is another thing to actually make a difference.
A Diaper Entrepreneurs take on when to seek outside help.
