When you are starting a business, being green may seem like the last thing to worry about. But adopting an environmentally friendly policy can pay dividends, writes Rachel Bridge in the first of a two-part report

WHEN Anya Pearson was forging a highflying career working for high-street clothing retailers, she noticed a lot of things about the fashion industry that she did not like. So two years ago she decided to take matters into her own hands and start a fashion label of her own, called Frank and Faith (www.frankandfaith.com). Frank and Faith, which is based in Dorset, makes ethical clothing from sustainable sources for men, women, children & homewears, with all items made in Britain from organic or sustainable yarns and fabrics and prices similar to those on the high street.

“Over the 20 years of working in the fashion industry I have seen a lot of sweat shops. I wanted to have everything made in Britain so I would know 100% that nothing was made by children in sweatshops,” she said. “Being made in Britain means that our clothes are locally sourced and completely traceable.”

After much searching, Pearson found a specialist knitwear maker in Leicester, one of the last of its kind in Britain. It costs more than using a factory in China, but Pearson is happy with her choice.

“The only reason people are able to buy clothes at such low prices is because somebody else is losing out.”

Instead of using sweat-shop labour to keep costs down, Pearson has chosen to keep her prices competitive by reducing her own profit margins.
As a result, business is booming and – something Pearson is pleased to note – not just from consciously green consumers.

“The main core of shoppers are the people who can’t afford ethical designerwear so this is my way of trying to get people in and trying to educate them in what it’s all about. I want them to understand why clothing has become so cheap and throw-away in the past 10 years. It is because of the rise of sweat-shop manufacturing and the complete disregard for the environment. Our Made In Britain clothes have significantly less air miles than clothes made out in the Far East, therefore our carbon footprint is miniscule compared to mass produced high street clothing”

Pearson is one of a growing number of fledgling entrepreneurs who have decided that going green is not just something to be aware of, but is integral to the way they run their business. And by incorporating sustainable, green ethics when they form their business, they create a strategy that places green values throughout the company.

Paul Rowley, knowledge transfer co-ordinator at the Centre for Renewable Energy at Loughborough University and co-founder of the energy advice website Greenenergy360.org, said that starting out green did not just make sense from an ethical point of view, it also made sense from a business point of view.

“There are two real advantages for a small business becoming green. One is branding and marketing advantage. The other is the impact on the bottom line. For example, implementing a green supply-chain procurement strategy or a renewable-energy system on your business premises tells the world – and most importantly your clients and suppliers – that you are thinking about sustainability and green issues and taking action. The installation of solar panels on your premises, for example, may not be cost-effective but it tells the world you are green and you are high-tech.”

He said another key factor to bear in mind was that larger companies, such as Marks & Spencer, were increasingly insisting that their small suppliers should become more sustainable in their operations. Many big companies want to move towards a green supply chain.

“Even without that stick in place, it makes sense for small companies to prepare for forthcoming increases in the application of green supply-chain requirements,” said Rowley.

When Emily Whitehead and her mother, Maggie Peet, decided to start up their tourist business in Staffordshire by turning their former family home into a self-catering holiday home for guests, they chose to do it in a green way from the start.

“We aim for it to be as environmentally responsible as possible,” said Whitehead. “Mum and I have lived this way for years. It is what we are passionate about, so it seemed an obvious route to take. I was initially nervous of upsetting guests by coming across as some kind of eco-warrior but we decided to go for it, and guests love it.”

To turn the four-bedroom Rowan House (Simplystaffordshire.co.uk) into a four-star eco-lodge, Whitehead and Peet sourced everything locally, using reclaimed furniture wherever possible. The garden is managed organically and guests are provided with a full range of eco-friendly cleaning products, recycling and composting facilities. Whitehead also offers a free transfer from the railway station so guests do not have to bring their cars.

Whitehead said there was a growing demand for holidays that did not harm the environment. “We are increasingly getting guests who have a green agenda and want to stay somewhere sustainable. I personally couldn’t go on holiday and chuck all the rubbish into a black bin liner and, increasingly, many other people are feeling like that.”

Sue Welland, co-founder of the Carbon Neutral Company, which advises small and large businesses on how to reduce their carbon emissions, said that putting in place a green policy right from the start – even if it was a statement of intent about what you planned to do rather than what you had actually already put in place – could send out powerful positive messages to both customers and suppliers.

“When you are starting up a business there are a lot of thins to consider,” she said. “But I would suggest putting a low-carbon philosophy in place from the moment the business is started. That will help you because then you will be able to include it in tenders for work and so on. If you can show that you have thought about this sort of stuff and have a policy in place, it will put you in a better position and make you more competitive.”