5. Better Business, Better Future
The Push Toward Sustainability
Shifting Ground series
This article is part of our Shifting Ground series, where we’re sharing what we’re seeing and hearing from SME owners across Aotearoa in 2025. The landscape is changing fast, and through this series, we’re exploring the key issues and opportunities shaping New Zealand’s small business community right now.
If there’s one shift we’ve noticed gathering real momentum in the SME community over the past couple of years, it’s the drive toward sustainability. At RegenerationHQ, in our work with business owners around the country, we’re seeing a clear pattern. Owners increasingly want their businesses to do more than just survive tough times, they want to contribute to a better future.
But and this is important, most aren’t chasing some shiny perfection. They’re looking for practical, achievable ways to make their businesses more sustainable, fairer and more connected to their communities. They want progress they can stand behind, not box-ticking.
In this fifth article in our Shifting Ground series, we’re taking a closer look at how SMEs are approaching sustainability, what’s driving it, what’s holding some businesses back and where we’re seeing encouraging signs of change.
Why Sustainability Is on the SME Radar
We often hear owners say things like “We’ve always cared about the environment, but now it feels like customers expect us to show it.”
And they’re right. The push toward more sustainable business practices is coming from multiple directions -
Customer expectations More consumers want to buy from businesses that take environmental and social responsibility seriously.
Regulatory changes Government policies and international standards are increasingly focused on emissions reduction, waste minimisation and transparency.
Supply chain pressure Larger companies are asking their SME suppliers to align with their sustainability goals.
Personal values Many owners, especially those building purpose-led businesses, want to leave a positive legacy.
This is no longer about PR spin. It’s about the real fabric of how businesses operate.
Barriers on the Ground
While motivation is high, there are still some very real barriers that make progress tricky for smaller businesses -
Cost Many sustainability initiatives require upfront investment, whether it’s switching to lower-carbon materials, changing packaging, or upgrading equipment.
Complexity Navigating carbon measurement, certification schemes and reporting requirements can be overwhelming.
Time For SME owners already stretched thin, sustainability often ends up as a “nice to do” that keeps slipping down the list.
Fear of greenwashing Owners want to communicate what they’re doing, but they’re wary of being accused of over-claiming or not doing enough.
We hear this a lot “We want to do the right thing, but we don’t want to be caught out for not doing it perfectly.”
What’s Working Well
Despite the challenges, we’re seeing more and more businesses make meaningful progress, often in small, smart ways. Here are some approaches we’re seeing work well on the ground -
Start with measurement Tools like Toitū or simple carbon calculators help businesses understand their baseline emissions.
Focus on low-hanging fruit Improving waste management, switching to renewable energy and reducing transport emissions are achievable first steps.
Collaborate Many owners are finding strength in numbers, joining local sustainability groups or industry initiatives to share knowledge and solutions.
Tell the story honestly The most trusted businesses are those that communicate progress transparently, celebrating wins but being open about the journey still ahead.
Involve the team Staff often have great ideas for making the workplace more sustainable, and getting them involved builds buy-in and momentum.
The Role of Regenerative Thinking
One exciting trend we’re seeing is the move from “less bad” thinking (reducing harm) toward regenerative thinking (actively contributing to positive outcomes).
This means going beyond compliance or basic waste reduction and asking questions like -
How can our business strengthen the community it operates in?
How can we restore, not just sustain, the environment we rely on?
How can we create fairer value chains and support decent livelihoods?
We’ve seen SMEs leading the way here, from ethical fashion brands to local food producers to service businesses building inclusive hiring practices.
It’s not about being perfect. It’s about embedding a mindset of care and contribution into daily decision-making.
What We’re Learning
From our conversations across the SME community, a few key lessons are emerging -
Progress over perfection. Businesses that take small, steady steps build more authentic, lasting sustainability than those chasing certification alone.
Customers value honesty. Openly sharing the sustainability journey, warts and all, builds trust and loyalty.
Regenerative thinking opens new possibilities. Moving beyond “less bad” to “more good” creates opportunities for innovation and purpose.
Support matters. Many SMEs benefit hugely from peer networks, sector groups and good advisors in this space.
A Closing Word
Sustainability can feel like a daunting extra load when times are already tough. But many of the businesses we work with tell us that starting on this journey has actually renewed their sense of purpose and connection.
One owner summed it up beautifully “We’re here for more than profit, and that’s what keeps us going when things get hard.”
At RegenerationHQ, we believe that building fair, regenerative businesses is one of the most powerful ways SMEs can contribute to a stronger future, for their communities, for Aotearoa and for the planet.
We’ll keep sharing ideas and stories to support that shift. Because better business really can mean a better future.
Stay Connected
If you’d like to follow this series and be part of the conversation about building a better SME support system for Aotearoa, or you’d like a quiet conversation about how to impact your business results now, here’s how to get hold of us –
📞 Phone +64 275 665 682
✉️ Email john.luxton@regenerationhq.co.nz
🌐 Contact Form www.regenerationhq.co.nz/contact
If you’d like to read more RegenerationHQ thinking on SME business and other things, go here – www.regenerationhq.co.nz/articlesoverview
🔹 RegenerationHQ Ltd - Business Problems Solved Sensibly.
Supporting NZ SME Owners to Exit Well, Lead Better and Build Business Value.