How to write a sustainability policy for a small business (free template)
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A sustainability policy (sometimes called an environmental policy or ESG policy) is a short document saying what your business commits to and who's responsible. It's one of the first things customers, tenders and lenders ask for.
For a small business it should fit on one page. Below: what to include, the mistakes to avoid, and a template you can copy.
The short version
- Keep it to one page, in plain English, signed and dated by a director.
- Make a few specific commitments you'll actually keep, rather than lots of vague ones.
- Name who's responsible and review it every year.
What to include
- A short statement of intent: one or two sentences on why sustainability matters to your business.
- Your main impacts: what's most relevant for you — energy and vehicles, waste, water, your people, your suppliers.
- Specific commitments: three to six things you will do, ideally with dates or numbers.
- Who's responsible: a named person or role.
- How you'll check progress: for example, measuring your carbon footprint every year.
- Sign-off and date: signed by a director or owner, with a review date.
Mistakes to avoid
- Vague promises like "we care about the planet". Customers can't check them, so they don't count for much.
- Claims you can't back up, such as "carbon neutral" or "100% sustainable". These can mislead customers and attract complaints. Only say what you can evidence.
- Copying a big company's policy. It won't fit your business and reviewers can tell.
- Writing it and forgetting it. An out-of-date policy looks worse than a short, current one.
Free one-page template
Copy this, replace the parts in [square brackets], and delete anything that doesn't apply to you.
[Business name] Sustainability Policy
[Business name] is committed to running our business in a way that's good for the environment, our people and our community. We recognise our main impacts are [energy use in our premises and vehicles / the materials we buy / the waste we produce], and we're working to reduce them.
We commit to:
- Measuring our Scope 1 and 2 carbon emissions every year and reducing them, starting with [our heating / our vans].
- [Switching to a certified renewable electricity tariff by [month year].]
- Separating our waste for recycling and reducing single-use items.
- Providing a safe, fair workplace, including [paying at least the real Living Wage].
- Asking our main suppliers to share our standards.
- Complying with all environmental and employment laws that apply to us.
Responsibility: [Name, role] is responsible for this policy and reports progress to [the directors / the owner] every [quarter / six months].
Review: We review this policy every year. Signed: [Name], [Director]. Date: [date]. Next review: [date].
After you've written it
- Put it on your website and in your supplier questionnaire pack.
- Share it with staff, so they know what's expected.
- Back it up with numbers: a carbon footprint you update every year is the strongest evidence.
Granular's free check suggests which commitments fit your business, and the dashboard helps you track them.
See exactly what applies to your business
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Take the free check →Frequently asked questions
Does a small business need a sustainability policy?
It isn't usually a legal requirement, but it's one of the first documents customers, tenders and lenders ask for. A one-page policy is quick to write and answers many questionnaire questions.
How long should a sustainability policy be?
For a small business, one page is enough. Focus on a few specific commitments, who's responsible and when you'll review it.
What's the difference between an environmental policy and a sustainability policy?
An environmental policy covers environmental impacts such as energy, waste and water. A sustainability or ESG policy usually also covers people and how the business is run. For a small business, one combined policy works well.
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Official sources
This guide is educational and not legal advice. Thresholds are simplified and rules change, so always confirm with the official source or an adviser.
Keep reading
- ESG4 min readA customer sent you a sustainability questionnaire. Here's how to answer itWhat large customers are really asking for, the five documents that answer most questions, and what to say if you're not there yet.
- ESG3 min readWhat is ESG? A plain-English guide for small businessesThe three letters everyone uses, explained in plain English — and what they actually mean for a business your size.
- E3 min readHow to calculate your small business's carbon footprint from your billsTurn a year of energy and fuel bills into a Scope 1 & 2 carbon figure, with a worked example.