4 Kinds of Sustainable Businesses You Can Get Into

More and more Filipinos have become aware of sustainability and embrace it in every aspect of their lives.

Based on a study by global market research firm Kantar in 2021, three of four Filipinos actively look for brands that “offer ways to offset their impact [on] the environment.”¹

Sustainability is not only limited to addressing environmental concerns.

According to the Harvard Business School, “sustainability” in business refers to enterprises operating without any negative impact on the environment, communities, or societies. Such businesses practice the Shared Value Opportunity principle of both "doing well" by making money and "doing good" by solving social and environmental problems.²

The United Nations (UN), meanwhile, says sustainable development can only be achieved if environmental protection, economic growth, and social inclusion are all integrated into the everyday course of business.³

If you plan to jumpstart an enterprise that not only helps you reach your financial goals but also allows you to advocate sustainability actively, here are some businesses you can venture into.

Also known as “green fashion,” these are lifestyle items made from recycled and reused objects, and indigenous raw materials that can be regrown. And true to the UN definition of sustainability, several sustainable fashion businesses tap local communities to produce the items, providing them with a source of livelihood and fostering a sense of community.

Some popular examples of sustainable fashion are the following:

• Bags made of used clothing or juice packs

• Clothes made of natural material (e.g. abaca, cotton, linen)

The country’s food industry is once again gaining ground from the pandemic. Based on a US Department of Agriculture report, consumer food service sales in the Philippines have nearly doubled from USD 7 million in 2020 to USD 13 million in 2023.⁴

With the current surge in demand for take-out and food delivery orders, there is a significant opportunity to venture into the biodegradable food packaging business, especially with the food industry's recovery from the pandemic.

Biodegradable packaging is made from materials that can decompose naturally. The faster the decomposition, the better.⁵

Paper is the most common form of biodegradable packaging. While traditional plastic takes a long time to decompose, biodegradable plastics or biodegradable polymers (BDPs) also exist. Like their paper counterparts, BDPs can also decompose into natural elements.⁶

Some familiar examples of biodegradable food packaging are the following:

• Food trays

• Food boxes

• Paper cups

The country is also on its way to recovering tourist demand, which shrunk during the pandemic. Global market research firm Fitch Solutions projected that 6.6 million foreign tourists would come to the Philippines by end-2024, or 81% of the 8.1 million figure in 2019. The good news is that foreign tourist arrivals are also expected to rise by 14% yearly until 2028. ⁷ Domestic tourism has likewise experienced a surge. ⁸

A higher tourism demand means opportunities to establish an eco-tourism business, taking advantage of the country's many natural wonders. Such an enterprise also presents opportunities to educate more people on protecting the Philippines' biodiversity.

With an eco-tourism business, you can organize activities like the following:

• Wildlife tours

• Scuba diving/snorkeling

• Kayaking

• Hiking

More and more Filipinos use renewable energy to power their homes and businesses. Some have taken part in their power distributor's net-metering program, an option for those who generate enough solar energy to sell back power to their distributors, resulting in lower electric bills.

The Energy Regulatory Commission has approved over 11,000 net-metering applications since 2015, over 4,000 of which were in 2023. ^9. In addition, installing a solar power system has become cheaper and more accessible.

If you possess the technical expertise, it's worth considering establishing a business that specializes in installing solar power systems.

Like any other enterprise, sustainable businesses have their risks. But with research, grit, and patience, you can develop an innovative business idea that helps the planet heal.

¹ Who Cares, Who Does: Understanding Filipino Consumers’ Attitudes and Actions Towards Sustainable Living, Kantar World Panel, 2021 https://www.kantarworldpanel.com/ph/Latest-Insights/sustainability-matters

² What Does “Sustainability” Mean in Business?, Harvard Business School, 10 October 2018 https://online.hbs.edu/blog/post/what-is-sustainability-in-business

³ Fast Facts – What is Sustainable Development?, United Nations, 8 August 2023, https://www.un.org/sustainabledevelopment/blog/2023/08/what-is-sustainable-development/

⁴ Del Castillo, Marie Christine, Exporter Guide, US Department of Agriculture – Foreign Agricultural Service, 4 January 2024, https://apps.fas.usda.gov/newgainapi/api/Report/DownloadReportByFileName?fileName=Exporter%20Guide_Manila_Philippines_RP2023-0074.pdf

⁵ Biodegradable, Degradable, Compostable, Food Waste; What’s the Difference?, University of Bristol https://www.bristol.ac.uk/media-library/sites/green/sustainability/documents/waste/Compostable%20and%20Bio%20Packaging.pdf

⁶ Song, JH; Murphy, RJ; Narayan, R; and Davies, GBH, Biodegradable and compostable alternatives to conventional plastics, Philosophical Transactions of the Royal Society B, 2009, https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2873018/pdf/rstb20080289.pdf

⁷ Quick View: Philippines Q1 2024 Tourist Arrivals Reflect Ongoing Post-Pandemic Recovery, BMI – A Fitch Solutions Company, 21 June 2024 https://www.fitchsolutions.com/bmi/tourism/quick-view-philippines-q1-2024-tourist-arrivals-reflect-ongoing-post-pandemic-recovery-21-06-2024?fSWebArticleValidation=true&mkt_tok=NzMyLUNLSC03NjcAAAGT8i5zNowZWK7t0rJnhkziojjvD5Hea4h-zKKg4m6AotPsRc-EUn3Y5ylnY2z6d6kF_tlSu8oMGdLU3XaF-Ur-DkNB88WFa-qhpm6856ZGQhUVA6mZ-A

⁸ DOT Reports Increase in Domestic Tourism in 2021, 29 June 2022, https://beta.tourism.gov.ph/news_and_updates/dot-reports-increase-in-domestic-tourism-in-2021/

⁹ ERC Approves 4,124 New Net Metering Customers for 2023, Energy Regulatory Commission, 4 January 2024, https://www.linkedin.com/posts/energy-regulatory-commission-erc-philippines_erc-approves-4124-new-net-metering-customers-activity-7148577847119339520-dtWB/

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