modern concept of profit from recycling money tree growing out of garbage bags 3d render
IS waste eating into your business profits? It might be, especially if leftover materials, unsold products, and packaging are treated as liabilities, rather than valuable resources.
That said, can a win-win situation exist in the ESG space? Absolutely. It happens when businesses—whether large corporations, small and medium-sized enterprises (SMEs), or micro, small, and medium-sized enterprises (MSMEs)—challenge the perception of waste as an expense and recognise the value it holds.
Recovering the losses
For many SMEs, the backbone of the economy, waste is simply seen as an expense—a problem to be discarded or managed at the lowest cost. However, it doesn’t have to be this way. Shifting to a circular model can transform products that were once a financial loss into a new revenue stream.
From turning food waste into products to repurposing industrial by-products into energy, businesses can embrace waste management innovations to drive sustainability, generate income, open new doors to growth, and recover those losses. While there is a growing number of SMEs adopting this shift, it is encouraged that more businesses follow suit.
Enhancing reputation and loyalty
Through the adoption of sustainable waste practices, SMEs that prioritise ESG initiatives, such as reducing carbon emissions and supporting social causes, attract environmentally conscious consumers, build loyalty, and in turn, open new markets, distinguishing themselves as leaders in the eco-conscious sector.
SMEs investing in sustainable practices benefit both the planet and their long-term financial stability. There have been findings that companies which optimise energy consumption and waste management often report significant cost savings, attract sustainability-focused investors, and reduce legal or reputational risks.
Additionally, integrating waste management innovations can improve ESG scores, enhancing SMEs’ appeal to banks and investors. A strong ESG performance, in turn, provides access to business loans and credit, securing capital for growth and further sustainability efforts. All these factors indicate greater security for future growth.
Profit with purpose
Imagine a world where businesses view waste not as a by-product, but as an opportunity to positively impact the environment, community and economy. SMEs, in particular, can lead the green revolution by adopting innovative waste management technologies such as biodegradable materials, material recovery and renewable energy solutions.
By transforming waste into valuable resources, SMEs can create new business opportunities in recycling, upcycling, and waste management sectors. This shift not only drives economic growth but also generates employment, stimulating the local economy.
Integrating sustainable practices enhances financial stability, allowing SMEs to expand their market reach while benefiting society. SMEs that prioritise sustainability also help foster more equitable communities.
They invest in employee welfare through fair wages, good working conditions, and health benefits, which can improve workforce wellbeing, as well as support broader societal causes such as education and healthcare.
Ultimately, SMEs can significantly reduce their environmental footprint and help combat climate change, preserving resources for future generations by adopting environmentally responsible practices.
It is as easy as ABC
To support SMEs in their sustainability journey, OCBC Bank (Malaysia) Bhd focuses on its “ABC” sustainability imperatives—accelerating the transition to a net-zero future, bringing impact to communities, and conducting business responsibly.
The bank plays a crucial role in driving the transition to a net-zero future, offering strategic advisory, innovative financial solutions, and ecosystem partnerships to help its clients meet their sustainability goals.
Aligning its operations with key Sustainable Development Goals (SDGs) such as Renewable Energy, Energy Efficiency and Climate Adaptation, OCBC integrates ESG principles across its business and client operations.
In addition, the bank advances the SME Energy Assessment (SMEEA) tool, which identifies energy inefficiencies and promotes sustainable practices, easing SMEs’ sustainability transitions.
OCBC Bank is also the main sponsor for the ESG Positive Impact Awards for the third consecutive year, reinforcing its commitment to promoting responsible business practices.
One may not realise how everyday actions add tocarbon footprint. Did you know that:
1.Charging your smartphone for three hours daily generates 3kg of carbon dioxide (CO2) per year.
2.A 3,000cc car driving 1,000km produces 230kg of CO2—and that’s just a single trip.
3.The average electricity use for a 1,000 sq ft office contributes roughly 4,600kg of CO2 annually. By contrast, about 50 solar panels can generate clean energy for a 1,000 sq ft space.
Those looking to make a change through solar may consider OCBC Bank, which supports the development of wind and solar farms in the region to generate CO2-free power.
The bank has pledged a remarkable US$25bil in sustainable finance by 2025—an amount it has long surpassed—underlining its commitment to safeguard the planet for future generations.
