Why Every Company Needs a Sustainability Management System

Why Every Company Needs a Sustainability Management System
by Jonathan Graham

I’ve seen firsthand how a well-implemented Sustainability Management System (SMS) can transform a company. If you’re already familiar with SGP certification or are SGP certified, you know the immense benefits it brings. Now, it’s time to share this knowledge and encourage others to join the movement. As part of the SGP community, I encourage you to share why every company needs an SMS before making sustainability or environmental claims. I hope this articles gives you information you can share with your supply chain and other companies who are serious about leading their organizations towards a more sustainable future.

What is a Sustainability Management System (SMS)?

An SMS is a structured framework that integrates environmental, social, and economic considerations into a company’s decision-making and operations. Think of it as a roadmap that guides organizations toward sustainability and future success.
Components of an SMS
Policies and Procedures- These are the backbone of a Sustainability Management System, outlining how a company will achieve its sustainability goals.
Practices- Day-to-day actions that ensure a company adheres to its sustainability commitments.
Objectives- Clear, measurable goals that a company aims to achieve.
The primary aim of an SMS is to meet the needs of the present without compromising the ability of future generations to meet theirs. It’s about making sustainability a core part of the business strategy, ensuring a company’s longevity and relevance in a rapidly changing world.

Why is an SMS Important?

Credibility- One of the biggest benefits of an SMS is that it lends credibility to sustainability claims. An SMS ensures that claims are backed by systematic and verifiable practices, securing a company’s reputation for the future.
Regulatory Compliance- Navigating the complex web of environmental regulations can be daunting. An SMS helps a company stay compliant with these regulations, avoiding potential legal pitfalls and fines. I remember a facility struggling with compliance issues. Implementing an SMS not only helped them meet regulatory requirements but also improved their overall operational efficiency.

Risk Management- An SMS helps identify and mitigate environmental risks, protecting a company from potential liabilities. For instance, one of our applicants discovered through their Sustainability Management System that they were at risk of violating air quality standards. By addressing this proactively, they avoided hefty fines and improved their community relations.

Operational Efficiency- By reducing waste, conserving resources, and optimizing processes, an SMS can significantly enhance operational efficiency. This not only lowers costs but also boosts the bottom line. I’ve seen companies save millions by simply streamlining their waste management processes.

Stakeholder Trust- Building trust with stakeholders—whether they are customers, investors, or employees—is crucial. An SMS demonstrates genuine commitment to sustainability, which can enhance brand reputation and foster loyalty.

Why Certify with SGP?

The SGP Certification started exclusively for the print and packaging industry, but since as expanded to the supply chain addressing all aspects of a manufacturing organization. It covers the entire manufacturing process, facility, product, and social responsibility. SGP emphasizes ongoing improvement through structured phases of initiation, planning, execution, evaluation, and promotion, ensuring companies always move forward.
SGP certification can lead to significant cost and resource savings. For example, certified companies have reported reduced greenhouse gas emissions by 2.42 tons, energy savings of 367,000 kWh per year (saving $25,000 annually), and diverting 78 tons of material from landfill by increasing recycling. These benefits not only improve thebottom line but also contribute to a more sustainable future.

Spread the Word

As someone who understands the value of SGP certification, you have the power to influence others. Share your success stories and the benefits of SGP certification with your supply chain and professional network. Encourage other companies to visit our Why Certify (https://sgppartnership.org/why-certify/) to learn more about the advantages of becoming SGP certified.