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14 Best Sustainable Business Examples to Follow

Updated on September 15, 2024

Our posts may contain links from our affiliate partners. This supports helps support the site as we donate 10% of all profits to sustainability organizations that align with our values. However, this does not influence our opinions or ratings. Please read our Terms and Conditions for more information.

You might want inspiration from others who have blazed the trail to achieve a sustainable business. Some have achieved environmental stability and now gain from the green economy. So, what are some sustainable business examples to follow?

We have prepared a list after careful research on specialized and global businesses. Read on to find out how they are achieved through sustainable efforts, and follow their sustainable business examples!

Table of Contents

  • What is Sustainability in Business?
  • Benefits of Business Sustainability
  • What Can Your Organization Do to Achieve Sustainability?
  • List of Sustainable Businesses to Follow
  • IKEA
  • Unilever
  • Panasonic
  • Allergan
  • Seventh Generation
  • Patagonia
  • IBM
  • New Belgium Brewing
  • Adobe
  • Nike
  • PepsiCo
  • Ford Motor
  • General Mills
  • Xylem
  • Corporate Sustainability Examples Compared
  • FAQs
  • Which company is most sustainable?
  • Which companies are becoming sustainable?
  • What are examples of sustainable business?
  • Is Starbucks a sustainable company?

What is Sustainability in Business?

A sustainable business is one in which profitability, environmental concern, and social commitment are in harmony. In other words, it involves coordinating business activities without negatively impacting the environment, society, and economy.

Business sustainability is achieved when an enterprise has minimal or zero impact on the global and local environment, community, society, or economy. That is why it is sometimes referred to as a green business.

To create a sustainable business, you should observe all three pillars. The pillars of sustainable investing are environmental, social, and governance (ESG).

Benefits of Business Sustainability

Your corporate sustainability initiatives benefit your business in many ways. We will not discuss them all in detail, but we will highlight a few.

The following are the apparent advantages of a green company:

  • Improved brand image and competitive advantage
  • Increase productivity and cost reductions
  • Increase business ability to comply with regulation
  • Attract employees and investors
  • Reduce waste and greenhouse gas emissions
  • Good impression on shareholders
  • Enjoy tax benefits
  • Attract more consumers
  • Ensures the continuation of the business

What Can Your Organization Do to Achieve Sustainability?

There are many things you can do to show your sustainability efforts. That will, however, depend on your industry. However, many sustainability practices apply to any industry.

You can do the following to become a green business:

  • Use sustainable materials in the production
  • Reduce food waste
  • Responsible use of natural resources
  • Choose renewable energy to reduce your carbon footprint
  • Introducing a recycling program.
  • Minimize travel or use of fossil fuels
  • Proper waste management
  • Take part in community projects such as tree planting.

See Related: Arista Networks, Inc. ESG Profile (ANET): Is It Sustainable?

List of Sustainable Businesses to Follow

You can identify a sustainable business strategy from examples. That ensures the continuation of your business and environmental conservation for future generations. The following are the best sustainable business examples to follow:

IKEA

IKEA Logo

IKEA is one of the few business examples worldwide that is known for its efforts to achieve sustainability throughout its supply chain and operations. The furniture giant appeals to employees, customers, and stakeholders through its sustainability practices.

The Swedish furniture maker sources almost half of its wood from sustainable forests. The same goes for its cotton suppliers. They all adhere to the better Cotton Standards that minimize water pollution through organic farming practices. The use of chemical fertilizers and pesticides is limited.

When you visit the IKEA store, you will readily see its commitment to environmental sustainability. It sources clean energy from solar panels and plans to sell them to customers in the UK and other countries.

IKEA declared in 2012 that it would become 100% powered by renewable energy sources by 2020. It has worked towards that goal as part of achieving corporate sustainability.

See Related: What is the Average Tesla Repair Costs? Full Budgeting Guide

Unilever

Unilever logo

The second on our list of sustainable businesses is Unilever, one of the biggest multinationals in the world. This British company has invested heavily in environmental sustainability and has received rewards. Unilever has become synonymous with sustainability.

Unilever has a Sustainable Living Plan, a program that sets a sustainable business strategy. It ensures that all business operations follow the set goals, from material sourcing to supply chain to production. The plan also covers energy, water usage, community interaction, and other sustainability ideas.

Unilever’s main goal in 2010 was to double the business’s size while reducing its environmental impact by half. Over the following years, Unilever used its resources to support corporate suitability initiatives.

Today, Unilever is one of the globally recognized sustainable companies. In 2015, its CEO received the Champion of the Earth Award, a prestigious award that every business leader dreams about.

See Related: United States Steel Corporation ESG Profile (X): Is It Sustainable?

Panasonic

Panasonic Logo

Panasonic may not be as recognized as one of the world’s sustainable companies, but it still sits high on this list. Experts have consistently ranked it high for its efforts in reducing environmental impact.

Panasonic’s energy goals can never be underestimated like all the companies on our list. Whether you rate it on energy efficiency or renewable energy use, it will still score high.

Panasonic’s main contribution to conserving our environment for future generations is making environmentally friendly products. If you follow Panasonic closely, you will recognize its unique ESG efforts. It has set a hallmark on how similar corporations should embark on sustainable development.

Panasonic has made several moves to prevent its employees from driving to work. This is one way to reduce its carbon footprint.

One of Panasonic’s latest developments is its partnership with different companies. The aim is to demonstrate a Sustainable Town in Japan, which will be the world’s first example of how sustainability can be achieved.

See Related: Titan International, Inc. ESG Profile (TWI): Is It Sustainable?

Allergan

Allergan Logo

Allergan is a Botox producer that has consistently scored high for many years. We cannot list sustainable companies without recognizing Allergen. Its impacts on the environment are remarkable.

This California-based pharmaceutical giant has proven its efforts toward sustainability for over two decades. It participates in water conservation and reduces waste and air emissions. It is determined to keep water, land, and air clean.

Allergan has a strict ESG reporting policy on its operations and supply chain. It was awarded for its positive impact on the environment. It received the Environmental Protection Agency’s EnergyStar Award in 2016, its fifth title.

Allergan has consistently taken its sustainability initiatives seriously. As a result, it achieved energy efficiency.    

See Related: Torrid Holdings Inc. ESG Profile (CURV): Is It Sustainable?

Seventh Generation

Seventh Generation Logo

Seventh Generation is a true example of what sustainability means. It not only uses sustainable practices but also creates space for green products. Its house cleaning products stand out as eco-friendly among others, but they hurt the environment.

We are all aware of how we use cleaning products at home. We wash them down the drain and hope that sewage treatment plants will do their work perfectly. Despite these efforts, chemicals still enter the groundwater and waterways.

Water pollution by string and toxic cleaning agents is still a concern in different parts of the world. Luckily, the Seventh Generation has developed greener versions of these products to save our planet for future generations.

The Seventh Generation has met the demand for eco-friendly cleaning products. People have also received them well, showing their commitment to environmental sustainability.

See Related: Tootsie Roll Industries, Inc. ESG Profile (TR): Is It Sustainable?

Patagonia

Patagonia logo

Patagonia is in the limelight of the move towards negative environmental impact by encouraging responsible consumption. Their current running advert encourages people to buy what they need to minimize waste, even if it is their product.

Patagonia has also implemented a program encouraging people to recycle, reuse, and repair their products instead of buying a replacement. The goal is to reduce the environmental footprint through waste reduction.

Patagonia has shown its sustainability efforts through its products and how to reuse locally available materials. The wetsuits are rubber, and plastic bottles are used to make parkas. That is a clever way of turning waste into a product worth buying.

This company has gone the extra mile by involving politics in achieving environmental sustainability. It advocates for electing environmentally responsible leaders.   

See Related: Universal Corporation ESG Profile (UVV): Is It Sustainable?

IBM

IBM Logo

This tech giant is also not left behind. It has proven its commitment to business sustainability from time to time. IBM has invested in corporate social responsibility and environmental stewardship since the 1960s. Its relentless efforts have been recognized by people worldwide.

IBM’s first sustainability report in 1990 and the energy efficiency of its data centers won the company an award from the European Commission. Despite its success in achieving business sustainability, IBM has never looked back.

Its current smart buildings strategy reduces demand for natural resources, encourages green procurement, and enhances water resource management. It is one of the most comprehensive approaches to achieving business sustainability.

See Related: Lockheed Martin Corporation ESG Profile (LMT): Is It Sustainable?

New Belgium Brewing

New Belgium Brewing Logo

New Belgium Brewing is a Colorado-based brewing company that has become the brewing industry leader in corporate sustainability. It may not have much to show, but its efforts are impossible to ignore.

New Belgium Brewing encourages its employees and customers to ride instead of drive. What other clever way can you reduce your carbon footprint in the brewing industry than that? But that’s not all!

New Belgium Brewing diverts almost all its waste from landfills. That is an approach to reduce and conserve land pollution for the future.

The brewer has also made energy efficiency an integral part of its operations. It is also a vocal company that speaks loudly about climate change. New Belgium Brewing has partnered with like-minded companies to make a better world for us.

See Related: Digital Realty Trust, Inc. ESG Profile (DLR): Is It Sustainable?

Adobe

Adobe Logo

Newsweek has named the IT giant the greenest company, which speaks volumes about its efforts to achieve this status. This well-deserved accolade follows its eco-friendly operations and innovations.

Adobe has achieved LEED certifications for most of its workstations. An example is retrofitting a historic building in San Francisco.

Adobe also has ambitious sustainability goals that warrant its ranking on this list. It has set a net-zero energy consumption and reduced packaging. The company has realized how its plastic packaging has been hurting the environment. As a result, it has embarked on changing the story.

Adobe’s other commendable approach to business sustainability is reducing water usage. The company has consistently tried to use less water since 2000 and is still putting more effort into achieving the set goals. It opted to install eco-friendly fixtures and use native plants for landscaping.

See Related: Halliburton Company ESG Profile (HAL): Is It Sustainable?

Nike

Nike Logo

Well-known Nike became the top outdoor clothing brand on Morgan Stanley’s list in 2015. Although it is not well known for achieving corporate sustainability (it has a reputation for the opposite), Nike has since striven to rewrite its story.

Nike’s success in this area over such a short time is due to its dedication to ESG reporting on supply chains and production practices. Its mobile application helps designers and consumers compare different fabrics’ environmental impact.

Nike has also followed the trails of other sustainable businesses in encouraging consumers to recycle or reuse their products. It is an effort to reduce waste.

Nike redesigned its boxes and packaging materials to reduce solid waste. It is also committed to reducing chemical effluents from its manufacturing process and investing in energy-efficient equipment.

Lastly, Nike is a key player in the intended innovation to ensure the sustainable processing of raw materials into products. These efforts put it right above many sustainability companies.

See Related: Nomad Foods Limited ESG Profile (NOMD): Is It Sustainable?

PepsiCo

PepsiCo Logo

PepsiCo is one of the world’s leading food-processing corporations. It recently introduced remarkable sustainability goals and is one of the sustainable business examples on this list. PepsiCo submits its sustainability goals annually.

The company’s immediate goals are to develop a diverse workforce and improve human rights. This enormous global brand has adopted sustainable business practices to minimize greenhouse gas emissions and the overall impact of climate change. It operates to reduce its demand for natural resources, thereby protecting the natural environment.

PepsiCo plans to drastically reduce sugar and fat in its soft drink products by 2025. This will reduce the need for resources and make for healthier consumers, which has countless positive knock-on effects on a societal level. Its other plan is to adopt a new sustainable design to make all its packaging materials recyclable.

See Related: Moody’s Corporation ESG Profile (MCO): Is It Sustainable?

Ford Motor

Ford Motor Logo

Ford is one of the most reliable companies in the automotive industry. Most of its models are used worldwide, which is not why it appears on this list. Ford has increased its use of renewable materials in making automobiles, with some remarkable statistics to back that up.

Ford managed a global waste reduction of 5.5% in 2018 only and a resounding 14.5% in water usage reduction since 2011. It aims to achieve 100% renewable energy for all its manufacturing factories by 2035.

We are also aware of the millions the company invests in the sustainable design and manufacture of electrified vehicles. Lastly, its effort to provide public support is no longer news. It celebrates diversity and improves people’s lives for the better.    

See Related: MetLife, Inc. ESG Profile (MET): Is It Sustainable?

General Mills

General Mills Logo

These days, General Mills mainly focuses on climate change, water conservation, and supply chain improvement. The company supports the humane treatment of animals and improves its products’ social and economic impact.

Today, most of General Mills’s products are sustainably sourced, and the company aims to make this 100%. The company invests millions in sustainability initiatives and development. Its coverage includes health and human rights support. It also puts much effort into improving its global responsibility issues whenever possible.

See Related: Different Sustainable Infrastructure Examples

Xylem

Xylem Logo

Xylem is a water technology provider that ensures quality and safety while reducing waste. Its team is responsible for sustainability performance and reporting. The company always strives to make one of the valued world resources available now and in the future.

Xylem is committed to optimizing water management and pollution and reducing landfill waste. Through its efforts, Xylem has achieved remarkable milestones in water usage reduction and greenhouse gas emissions.

Xylem’s efforts have been recognized by Forbes, Fortune, and the Global Water Awards as one of the world’s leading companies focusing on the safety of local and global communities.

Corporate Sustainability Examples Compared

Company Industry Key Sustainability Goals Notable Achievements
IKEA Furniture and Home Goods – 100% renewable energy by 2030
– Climate positive by 2030
– Zero waste to landfill
– Sourcing 98% of wood from more sustainable sources (as of 2020)
– Invested in 547 wind turbines and 2 solar parks globally
– Implemented circular economy principles in product design
Unilever Consumer Goods – Net zero emissions from all products by 2039
– 100% sustainable sourcing of key agricultural crops
– Improve health and well-being for 1 billion people
– Achieved zero non-hazardous waste to landfill across global factory network
– 67% of agricultural raw materials sustainably sourced (as of 2020)
– Reduced CO2 emissions from energy by 65% per tonne of production since 2008
Panasonic Electronics – Achieve carbon neutrality across all operations by 2030
– Expand clean energy systems business
– Pursue zero-CO2 factories
– Developed eco-friendly products and technologies
– Implemented energy-saving measures in factories
– Increased use of renewable energy in operations
Allergan (now part of AbbVie) Pharmaceuticals – Reduce greenhouse gas emissions
– Increase water efficiency
– Minimize waste generation
– Achieved 42% reduction in greenhouse gas emissions (2010-2019)
– Implemented water conservation projects
– Increased recycling rates in operations
Seventh Generation Household and Personal Care Products – Use plant-based and other renewable ingredients
– Reduce plastic waste
– Achieve zero waste
– 100% of products use plant-based or other renewable ingredients
– 100% recycled plastic in packaging for most liquid products
– Implemented energy-efficient manufacturing processes

FAQs

Which company is most sustainable?

A sustainable company operates in a way that minimizes its negative impact on the environment and society while maximizing its positive impact. This includes reducing waste and emissions, using renewable resources, and promoting social responsibility. While no company can be deemed the most sustainable, some examples of companies prioritizing sustainability in their operations include Patagonia, Unilever, and Interface.

Which companies are becoming sustainable?

Sustainable companies prioritize environmentally friendly practices and aim to reduce their carbon footprint. Many companies are becoming sustainable as consumers become more conscious of the impact of their purchases on the environment, and governments implement regulations to reduce emissions. Some companies also recognize the cost-saving benefits of sustainable practices, such as reducing waste and energy consumption.

What are examples of sustainable business?

A sustainable business model prioritizes environmental and social responsibility alongside profitability. Examples of sustainable businesses include Patagonia, a clothing company that prioritizes ethical and sustainable sourcing, and Tesla, an electric car company that aims to reduce carbon emissions through sustainable transportation.

Another example is Ben & Jerry’s, an ice cream company that sources its ingredients from sustainable and fair trade sources while supporting social and environmental causes through its business practices.

Is Starbucks a sustainable company?

Starbucks is a sustainable company committed to reducing its environmental footprint and increasing its positive social impact. In 2021, the company announced a set of ambitious goals to become more environmentally friendly, including a commitment to become “resource positive” by storing more carbon than it emits, conserving water, and reducing waste.

Additionally, Starbucks has a long-standing commitment to ethical sourcing and supporting coffee farmers, which helps to promote social sustainability in the coffee industry.

Related Resources:

  • Simon Property Group, Inc. ESG Profile (SPG): Is It Sustainable?
  • The Southern Company ESG Profile (SO): Is It Sustainable?
  • General Electric Company ESG Profile (GE): Is It Sustainable?
  • Leidos Holdings, Inc. ESG Profile (LDOS): Is It Sustainable?
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