News

How doing good can also drive business performance

Author: Ciara Brennan, APPA Sustainability Manager

Many small and medium-sized enterprises (SMEs) in Australia still see sustainability as a cost or compliance task. But sustainability can deliver measurable business value — if you know where to look. 

What Does “ROI of Sustainability” Look Like for SMEs?

ROI doesn’t mean just dollars saved on utilities — it includes:

• Cost savings (energy, waste, materials)
• Revenue growth or retention
• Reduced risk (regulatory, supply chain, reputational)
• Operational performance gains
• Brand strength & employee engagement

Tracking these impacts can help SMEs justify investment and build momentum internally and with clients.

1. Cost Savings — The Easiest Wins

Sustainability often delivers the quickest ROI through resource efficiencies.

ecoBiz Program — Queensland SME Case Evidence

The ecoBiz program — a free Queensland Government-supported initiative — has helped hundreds of local businesses identify energy, water and waste efficiencies. A Griffith University evaluation found that, on average, participating SMEs saved over $80,000 per business per year and increased productivity by around 20%, while cutting about 30,000 tonnes of CO₂ emissions across participants. (Griffith News)

These kinds of savings are typical of simple sustainability actions like:

• energy-efficiency upgrades
• behavioural changes (switch-offs, maintenance)
• waste reduction and better recycling
  which reduce operating expenses without sacrificing output.

2. Revenue & Brand Advantage — Purpose Drives Preference

For SMEs selling products or services, sustainability can differentiate your offer and win customers.

Who Gives A Crap — Sustainable Growth Through Purpose

Who Gives A Crap, an Australian-founded toilet paper company, built its value proposition on sustainability and social impact from day one. It donates 50% of its profits to water and sanitation causes, uses recycled or FSC-certified materials, and has grown into international markets while building a strong brand affinity. (Who Gives A Crap)

The business model has not just cut wasteful material use — it has created brand demand and growth, with revenue expanding strongly as conscious consumers choose the product over conventional alternatives. This example shows how integrating sustainability into product value can reinforce both mission and market appeal.

3. Risk Reduction — Avoiding Costly Pitfalls

Some sustainability investments prevent future losses.

Regulatory and Supply Chain Preparedness

While not a single named SME case, many Australian SMEs now use programs like ecoBiz to get ahead of emissions reporting and supply-chain expectations — reducing last-minute tender rejections or compliance hassles. The program has been recognised globally and helps businesses lower carbon, water, and waste footprints, which increasingly align with procurement and investment criteria. (Business Chamber Queensland)

Reducing risk this way isn’t always direct revenue, but it avoids losing contracts or facing claims of misleading environmental claims.

4. Operational Efficiency — Doing More With Less

When sustainability uncovers inefficiencies, the gains go beyond resource saving.

ecoBiz Insights on Efficiency

Businesses working with ecoBiz regularly identify not just cost savings but process improvements — often through:

• better benchmarking of energy and water use
• streamlined waste sorting and reduction
• targeted emissions tracking

These improvements often show up in lower operating costs and smoother internal workflows. For example, one ecoBiz report highlighted that average participant utility savings were paired with behavioural and operational changes that boosted productivity. (Griffith News)

5. People & Culture — Harder to Measure, But Valuable

Sustainability can be a powerful employee engagement and retention tool.

• SMEs that articulate social and environmental purpose often report higher staff satisfaction and easier recruitment.
• Younger workers especially value purpose alongside pay.

While specific Australian SME data is less commonly published, global research consistently shows companies with strong integrated sustainability strategies outperform competitors in retention and workforce morale.

Practical Ways to Measure ROI for Your SME

Here are measurable indicators you can adopt:

Financial

• Direct cost savings (energy, waste, materials)
• Incremental revenue wins citing sustainability as a factor
• Avoided fines or compliance costs

Operational

• Percent reduction in energy or water consumption
• Waste diverted from landfill
• Efficiency gains (e.g., faster processing, fewer defects)

Market & Brand

• Number of new client wins citing sustainability
• Repeat business from values-aligned customers
• Media attention or industry recognition

People

• Staff churn or engagement scores
• Employee referrals and recruitment success

Next Steps

1. Start with a simple audit: Identify quick energy, water, waste savings opportunities.
2. Benchmark baseline data: Know where you started so you can measure improvements.
3. Choose a few key metrics: Don’t try to measure everything at once — pick what matters most to your business and customers.
4. Tie actions to business outcomes: Show leadership how sustainability yields bottom-line benefits (or cost avoidance).
5. Share your successes: Use case studies in proposals and marketing to differentiate your SME.

Sustainability ROI isn’t a buzzword — it’s a practical business strategy. For Australian SMEs, programs like ecoBiz and purpose-driven brands like Who Gives A Crap show that sustainability can deliver real, measurable value that strengthens competitiveness, lowers costs, and builds resilience.