C-plus-C
How much does it cost to establish a sustainability management system?
The specific costs of establishing a sustainability management system naturally vary from company to company. They depend not only on the size of the company, but also on factors such as the current state of sustainability within the company, the general business environment, the company’s sustainability-specific goals, and the desired timeline.
In general, however, the following applies: Even with limited resources, a great deal can be achieved with the right focus. In addition, there are various funding opportunities available to support both project development costs and investments that promote sustainability. (More details about funding opportunities can be found here.)
Larger companies usually require a dedicated sustainability department due to the wide range of business areas and sustainability issues involved. For smaller SMEs, however, this can certainly be managed by a “part-time” coordinator, provided there is a clear focus.
A company starting completely from scratch in the area of “sustainability” will certainly need to budget for more time, more internal effort, and higher external consulting costs. The more sustainability aspects are already “naturally” integrated into the company’s business model, the lower the additional effort will be. A joint analysis with a sustainability consultant (such as C-plus-C) can quickly provide clarity here.
In principle, the business model itself determines the number of sustainability issues—which may include: carbon footprint assessment, water management, climate risk analysis, resource efficiency, raw material recycling, supply chain issues, working conditions, and much more. But no company is forced to tackle all these issues simultaneously or with the same level of commitment.
The prioritization of sustainability issues relevant to the company, as determined by the materiality analysis, enables SMEs to focus their efforts in a way that aligns the necessary expenditures with the resources available.
The target timeframe is relevant in that a rapid implementation pace typically comes at the cost of additional effort (e.g., through extensive external support). However, it is usually possible to adapt the timeline to the available resources—on the one hand, by taking the time to develop the necessary additional skills within the company itself, and on the other hand, by limiting external support to those areas where internal skills are not (yet) sufficient.
Conclusion: The costs of establishing a customized sustainability management system depend on various company-specific factors and, in particular, on the objectives. However, they can always be adapted to the available resources and further reduced through funding opportunities.