Green is the New Gold: Unlocking Wisconsin’s Green Business Potential

Whether out of a desire to be part of positive change, attract environmentally-minded consumers, reduce energy costs, or all of the above–more businesses of all sizes are looking for ways to increase sustainability and reduce their environmental footprint. In this article, we’ll take a closer look at the reasons why businesses decide to go green, specific steps you can take for greater energy efficiency, state and federal tax breaks and grants, and more.

The Business Case for Going Green

Sustainability efforts have “a positive impact on business performance,” according to research from Harvard Business School. Companies who prioritize sustainability are “better positioned to anticipate and react to economic, social, environmental, and regulatory changes.”

“Going green” is also popular with consumers, especially younger generations. Over the past five years, there has been a 71% rise in online searches for sustainable goods globally, according to a survey from The Economist. 90% of Gen Z survey respondents reported making changes to their daily routines to be more sustainable. And not only are consumers interested in sustainability–they’re also willing to pay more for sustainable products.

Green Practices that Attract Clients

So, how can you adopt green practices to make your business more sustainable? It’s not always easy to adopt new initiatives, especially when resources such as time, money, and equipment are involved. However, it may be possible to add one or two relatively simple measures now and ramp up from there as you’re able to. Here are some ideas:

Recycling

• Comprehensive Recycling Programs: Implement recycling programs within your business, including materials like paper, plastic, cans and bottles, and electronics. If you’re already recycling some materials, see if you can add another one.
• Recycled Materials in Products: If you have a manufacturing business, try to use recycled materials to make your products.
• Participation in Community Recycling Events: Many towns have recurring e-waste and other recycling events. You could participate or sponsor one such event to show your community involvement and commitment to a sustainable future. Engaging in or sponsoring local recycling events, showing community involvement.

Wisconsin’s Department of Natural Resources has a helpful page on Business and Workplace Recycling that can help you figure out what materials you can and must recycle in the state.

Renewable Energy Use

If you own the building your business operates out of, consider installing solar panels to reduce utility costs as well as your reliance on fossil fuels. If solar isn’t an option, you could ask your electric provider if you can opt for wind-powered or other renewably-sourced electricity.

Another option for renewable energy use in your business is to install a heat pump for heating and cooling instead of traditional HVAC systems.

Eco-Friendly Packaging

If you have a food business or manufacture products, look for ways to reduce packaging and use more biodegradable materials. For example, you could serve coffee in compostable to-go cups. If you have a retail store, you could package purchases in high quality paper bags that can be reused instead of plastic–as an added bonus, your business name and logo on the bag will serve as free advertising when the bag is reused.

Sustainable Supply Chain Management

Most businesses are impacted by supply chain issues. Whether due to a global pandemic, international conflicts, or natural disasters, a disrupted supply chain is frustrating for both consumers and businesses. While not everything is in your control, investing in sustainable supply chain management can at least help prevent climate-related disruptions.

A local supply chain is the most sustainable one, reducing your carbon footprint in sourcing materials. Local sourcing also offers less threat of disruption–goods and materials don’t have to travel across the ocean, for example.

When choosing new suppliers for your business, look for ones with a sustainable supply chain and other green initiatives.

Community and Environmental Engagement

As a local business, supporting community projects, whether that’s a park clean-up, tree-planting day, or something else, can give you positive visibility in your area. It’s also a way to show your commitment to sustainability in your business.

You could also encourage employees to “go green–” for example, by providing reusable mugs or water bottles for use at work instead of disposables.

Financial Incentives and Support

Learn about federal and state tax credits and grants for businesses that make eligible green energy improvements.

• Business Energy Investment Tax Credit (ITC): Businesses who install a solar energy system can see their federal income tax reduced.
• Rural Energy for America Program (REAP): Ag producers and rural small businesses can apply for grant funding to install renewable energy systems or make other improvements to increase energy efficiency.
• Wisconsin Tax Incentives For Businesses: View tax deductions and credits you may be eligible for by industry.

Long-Term Benefits of Being a Green Business

Of course, businesses exist to make a profit. It can feel good to do good, but you also have to ensure sustainability initiatives support your bottom line. Luckily, there are long-term benefits to going green in addition to the shorter term gains we’ve already covered.

Reduced Operational Costs

Increasing energy efficiency at your business, whether through LED lighting, modern appliances, or solar panels, will greatly reduce your utility costs over the long run.

Savings can also be realized through streamlining operations to use resources more efficiently. For example, can you reduce your water usage or optimize your supply chain?

Enhanced Brand Value and Competitiveness

Advertising your green credentials can help differentiate your business from competitors. Appeal to the growing market segment of consumers looking for eco-friendly options.

If your business needs funding at some point, you might be able to attract sustainability-focused investors who are specifically looking for businesses with environmentally and socially responsible practices.

FVSBank Leads the Way in Financing Wisconsin’s Green Business Future

Ready to add renewable energy or other sustainable practices to your business? If you’re looking for business financing in Wisconsin to make eco-friendly improvements, our business bankers are here to help you reach your full green business potential. To learn more about equipment loans and other business loan options, contact us or visit your nearest branch location in Oshkosh, Waupun, or Fond Du Lac, Wisconsin.