Sustainable business: what it means and how to make yours greener
A sustainable business is one that makes a profit without using up resources or harming people and the environment. In practice it means using less energy, producing less waste, buying with care and telling the truth about all three. Most of the steps also cut costs.
Sustainable business: key facts
| The UK target | Net zero greenhouse gas emissions by 2050, set in law in 2019 |
|---|---|
| Green claims | The Competition and Markets Authority can fine a business up to 10% of its worldwide turnover for misleading claims |
| Recycling at work | Required by law in England since 31 March 2025 |
| Tax relief | Up to 1 million pounds a year of spending on equipment can be set against profit |
What makes a sustainable business?
Three things: what it takes from the environment, how it treats people, and how honestly it is run. For most small and medium sized businesses the environmental part comes down to four areas.
| Area | What to do | Why it pays |
|---|---|---|
| Energy | Fit LED lighting and heating controls, and switch off equipment out of hours | Lower bills at once |
| Waste | Audit your bins, separate materials and sell what has a value | Lower collection costs, and income from materials |
| Buying | Choose recycled content, less packaging and products that can be repaired | Lower packaging fees and less to throw away |
| Travel | Plan routes, share loads and move to electric vehicles as leases end | Lower fuel costs |
The rules that apply
The Simpler Recycling rules require workplaces in England to separate their recycling and food waste. Any claim that a product or business is green must follow the Green Claims Code: it must be truthful, clear and backed by evidence. Since April 2025 the Competition and Markets Authority can fine a business directly for misleading claims.
Tax relief for greener equipment
Spending on equipment such as efficient machinery, balers, heat pumps and solar panels usually qualifies for capital allowances. The annual investment allowance lets a business set up to 1 million pounds of this spending against its profit in the year it is made. Ask your accountant which allowance fits each purchase.
A green office checklist
- A recycling bin beside every general waste bin, with clear labels.
- A food waste caddy in the kitchen.
- Printers set to print on both sides, and paper with recycled content.
- Old computers, phones and furniture sold or given away, not thrown out.
- Lights and screens off at the end of the day.
- One named person who checks the bins and the bills each month.
Start with waste, because the saving shows on the next invoice. Read our guides to writing a waste management plan and commercial recycling, and see what your materials are worth on our prices page.
Frequently asked questions
What is a sustainable business?
A business that makes a profit without using up natural resources or harming people and the environment. It manages its energy, waste, buying and travel to reduce its impact.
How can a small business become more sustainable?
Start with the cheapest steps: cut energy use, separate waste for recycling, sell materials that have a value and buy products with recycled content.
Does being sustainable save money?
Usually. Using less energy and sending less to general waste both cut bills, and separated materials such as cardboard and metal can be sold.
What is the Green Claims Code?
Guidance from the Competition and Markets Authority on environmental claims. A claim must be truthful, clear, complete and backed by evidence.
Is there tax relief for going green?
There is no single green tax relief. Spending on efficient equipment usually qualifies for capital allowances, including the annual investment allowance of up to 1 million pounds.