The market of a developing country with high growth expectations is indeed considered an emerging economy. An emerging economy indicates a low to middle per capita income growth and a democratic dividend.
As an emerging economy, Ghana, for instance, is a stable democracy and has ones again experienced a peaceful transfer of political power from one administration to another after the December 2024 elections. Ghana’s GDP growth statistics show a promising trend.
In the first half of 2024, the country GDP surged by 5.9 % driven by an 8.1% growth in the industry sector particularly in oil and gas. The agriculture sector expanded by 5.1% despite a significant contraction in cocoa while the services sector grew by 4.5%. The World Bank forecasts that Ghana’s medium-term growth will strengthen by reaching around 5% by 2026 and mainly driven by improvements in agriculture, services and extractive industries.
Indeed, emerging economies face unique challenges in balancing economic growth with environmental sustainability. Ghana’s is no exception and businesses in that regard need to adopt eco-friendly practices into their core operations to minimize their environmental footprint. It is worth noting that a business practice that is economically viable, socially responsible and environmentally friendly is considered as sustainable.
Eco-friendly Business Practices
Eco-friendly business practice is a strategy that reduces or controls the impact of a company’s activities on the environmental while maintaining profitability. Eco-friendly business practices include adopting renewable energy, reducing waste or conserving energy and promoting sustainability.
They are essential in today’s business ecosystem since consumers increasingly prefer companies that prioritize sustainability. This article further look at those sustainability or eco-friendly business practices.
-Integrating Paperless Systems
Paper waste is a significant environmental concern in many businesses, particularly office settings. Businesses must consider going paperless as much as possible by eliminating unnecessary paper usage. In that regard, they can streamline some administrative tasks or accounting processes by transitioning to a user-friendly digital tool or a robust software application.
Migrating important documents and processes to an online or digital platform can make data more easily accessible and easier to process. That said, going paperless enables a business to reduce waste, control cost and make it more sustainable. This can greatly improve collaboration and overall efficiency.
–Exploring Renewable Energy Sources
Ghana’s energy demand is rising due to economic growth or increasing urbanization. It, therefore, requires an urgent need to create opportunities for renewable energy to fill the gap. To ensure a smooth transition, the adoption of renewable energy systems demands thorough planning. A company will need to audit its current energy use to identify areas it must improve and the options available.
A professional advice from an external and an independent auditor can help bring impartiality and expertise to the process. These professionals offer recommendations based on industry benchmarks and best practices. Renewable energy is not just good for the planet but enables businesses to save energy cost of operations.
The solar energy market, for instance, is poised for continued growth mainly driven by decreasing costs of photovoltaic (PV) panels and increasing demand for renewable energy. It is therefore offers a more viable option for small and medium-scale enterprises to adopt it as an energy-saving option over time.
Government’s tax credits and rebates can significantly offset the initial cost of installing renewable energy systems. Over time, this switch will help companies reduce carbon footprint while improving their bottom line. To optimize energy efficiency, businesses should collaborate with sustainable energy specialists who can provide customized and effective solutions.
–Adopting a Circular Economy Approach
A circular economy revolutionizes the way we consume goods and services. It aims at sustainability where goods can be re-used or recycled to reduce waste and environmental impact. To integrate circular principles, businesses should start with product design.
They will need to prioritize materials that are both durable and recyclable while also implementing efficient production methods to reduce waste. Small and medium-scale enterprises (SMEs) must also explore partnerships for resource sharing. This can include collaborating with other stakeholders to utilize each other’s waste as raw materials for new products.
Circular economy resonates with reduce, reuse, and recycle (the 3Rs policy). The 3Rs involves processes to reduce the environmental impact of a business by reducing waste, reusing items and materials wherever possible and then recycling those which they cannot reuse.
When dealing with potential waste, a business should consider where the 3Rs might be applied. Industries must explore and adopt green manufacturing processes that minimize waste, reduce energy consumption and promote the use of eco-friendly materials.
Flowing from the above is sustainable packaging. Sustainable packaging is generally made from biodegradable materials that are either easy to recycle or reuse and goes a long way to reducing the amount of waste a business generates. A circular approach not only benefits the planet but also builds brand loyalty and trust. This system offers a triple benefit of reducing emissions, lows material costs and increases appeal to eco-conscious consumers.
–Re-orienting Employees on Green Initiatives
Employees are the backbone of any company and it is essential for them to understand the impact of their actions on the environment. Re-orienting employees through training programs will help achieve goals. Thus, active involvement of employees is crucial in implementing eco-friendly practices.
Activities such as community engagements through volunteerism can help to build ties with their local communities. As such, when they engage in sustainability related corporate social responsibility (CSR) projects, they demonstrate their commitment to being good neighbours and stewards of the environment.
Conserving Water Usage
Water is a fundamental resource for businesses and used across various areas such as employee facilities, equipment operation and core production or manufacturing processes. While some volume of water usage is essential for a business to operate, it is equally important to assess the optimum consumption to reduce waste in a bid to achieve sustainability.
Small and medium-scale enterprises (SMEs) can conserve water through the installation of water-saving fixtures or promptly fixing any leaks or faulty plumbing on the premises. In sum, implementing efficient use of water, energy and raw materials helps to minimize waste and reduce costs.
Key Takeaways
Eco-friendly strategies that SMEs can adopt or integrate into their operations should intentionally include:
- Embedding sustainability into the company’s purpose, business strategy and goals.
- Ensuring resilience by leveraging and speeding up technological innovation to reach sustainability while considering new sustainable business models to capture emerging opportunities.
- Collaborating closely with local policymakers and coming together as an ecosystem that includes suppliers and other key stakeholders in the value chain.
- Ensuring organizational transformation by re-orienting employees on the importance of sustainability. They must be actively involved in developing eco-tourism initiatives that support conservation efforts and provide economic benefits to local communities. Their engagement is crucial for successful green initiatives.
- Continuous communication and engagement with key stakeholders to ensure accountability.
- Implementing eco-friendly business practices should be beneficial to the environment and also aim at enhancing brand reputation and lead to cost savings.
Conclusion
In closing, sustainability is becoming a powerful source of competitive advantage and companies in Ghana need to close the gap between them and their counterparts in other economies as it reshapes competition in global trade. Businesses need to explore opportunities to adopt sustainable business practices and eco-friendly initiatives. Sustainable business practices do not just benefit the environment but also bring a wide range of benefits to the business itself.
While essential, it is not just about doing the right thing ethically. Sustainable businesses can cultivate a positive public image, brand reputation for behaving responsibly. These ethical businesses attract customers who are passionate about supporting social or environmental issues.
Eco-friendly strategies will help drive a long-term growth while minimizing environmental impact. By overcoming implementation challenges and leveraging opportunities, businesses in emerging economies can contribute to a more sustainable future and improve their bottom line.
BERNARD BEMPONG
Bernard is a Chartered Accountant with over 14 years of professional and industry experience in Financial Services Sector and Management Consultancy. He is the Managing Partner of J.S Morlu (Ghana) an international consulting firm providing Accounting, Tax, Auditing, IT Solutions and Business Advisory Services to both private businesses and government.
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