5 ways sustainability builds trust, growth & resilience

It’s a common assumption from many business leaders that if their organisation doesn’t meet the threshold for Streamlined Energy and Carbon Reporting (SECR), then they don’t need to worry about sustainability because “they’re not big enough yet.” Technically, they’re not wrong.

If your business has fewer than 250 employees or under £36 million in annual turnover, you’re not currently required by law to report on carbon emissions. That’s the compliance threshold.

But here’s the thing– compliance isn’t the only reason to take this seriously.

In today’s world, sustainability is no longer just a nice-to-have or something reserved for the corporate giants. It’s a key driver of growth, business resilience, and reputation. The rules might not apply to every business yet, but the expectations do. From customers and employees to investors and partners, stakeholders are paying attention.

What is sustainability, and why does it matter?

While it can sound like another item on an already full to-do list, it’s just not about ticking boxes. Done right, it becomes a powerful tool to drive business strategy, align teams, and build long-term value.

At its core, it’s about how your business shows up for the planet, for your people, and for the communities around you. It’s about doing business responsibly and transparently – with strong governance standards and a commitment to social responsibility – in a way that sets you apart and helps you grow.

When smaller businesses view sustainability only through the lens of regulation, they miss a golden opportunity. It’s not about whether you must report – it’s about what your stakeholders expect, and what your future self will thank you for starting now.

5 Ways sustainability benefits business

The businesses embracing sustainability early are already seeing the benefits. Here’s what that looks like in practice:

1. Stronger customer relationships: More people are buying from brands that align with their values. Being able to communicate your environmental impact or social initiatives builds trust and loyalty.
2. Better access to funding: Investors are increasingly factoring sustainability into their decisions. Even banks are considering sustainability in business when assessing lending criteria.
3. Winning talent and keeping it: Today’s workforce is looking for more than just a payslip. They want to work for organisations that are making a difference and acting ethically.
4. A competitive edge in tenders and supply chains: sustainability credentials are now a deciding factor in many procurement processes. If you’re not ready, you risk being left out.
5. Long-term business resilience: sustainability helps businesses future-proof by identifying risks early, from climate exposure to supply chain vulnerabilities. That kind of foresight is invaluable when times get tough.

Why should small businesses care about sustainability?

It can help your business stand out in a sea of sameness. It’s how you show what you care about. How you attract customers who believe in what you do. And how you position your business as one that’s built to last, not just coast through the now.

It’s also a chance to lead. Especially for small and medium-sized businesses. You’re agile. You can move faster. You don’t have the red tape that slows down the bigger players. That’s a huge advantage if you use it well.

Waiting until sustainability reporting becomes mandatory might seem like the easy route, but it means missing the chance to shape your own story.

What are the risks of ignoring sustainability?

Let’s flip the question. Instead of asking “Do we have to do this?” ask:

• What happens if our competitors get there first?
• What if a key client starts asking for reporting, and we’ve got nothing to show?
• How much talent could we be missing out on by not building a purpose-driven business?
• Could our costs be lower if we’d acted earlier on energy efficiency or waste?

The businesses asking those questions now are the ones setting themselves up to thrive.

What are the first steps in building a sustainability plan?

You don’t need a 50-page report to get going. A few examples of where to begin:

• Measure and understand your carbon footprint: even a rough baseline is useful.
• Review your HR policies through a well-being or inclusion lens.
• Look at your governance: are decisions being made fairly and transparently?
• Ask your team and customers what matters to them. That input is gold.

From there, you can build. Set targets. Track progress. Celebrate wins. And keep learning.

How can AAB help?

At AAB, we know sustainability is an opportunity to build a better business. Our Sustainable Business & ESG Services team works with clients to create practical, strategic plans that fit where you are now and where you want to go.

Whether you’re taking the first steps or want to make sustainability central to your strategy, we’re here to help you get there, with confidence, clarity, and purpose.

If you have any queries about how to get started, we’re here to help. Please do not hesitate to get in contact with Alasdair Green or your usual AAB contact.