The Drivers of Sustainability: Small and Medium-Sized Businesses

By Taylor Williams, Council of Michigan Philanthropy Fellow

Fred and Barbara Erb’s largest personal gift during their lifetimes helped establish the Frederick A. and Barbara M. Erb Institute at the University of Michigan in 1996. The Institute offers an undergraduate fellows program and a dual graduate degree through the Ross School of Business and the School for Environment and Sustainability.

At that time, businesses’ focus on sustainability was typically narrow, mainly addressing environmental challenges such as carbon emissions. Chief sustainability officer was a role that didn’t exist, and companies rarely considered their environmental footprint—if at all.

Fred and Barbara supported the Erb Institute because they believed in the potential of businesses as agents of positive change and drivers of sustainability efforts. They envisioned a future where businesses not only thrive economically but also actively contribute to the wellbeing of people and the planet, proving that environmental responsibility and business success are not mutually exclusive.

The Foundation began exploring this area of work in 2020 with a study of the sustainable business ecosystem in Southeast Michigan. That research revealed the need to improve regional connectivity around the meaning of sustainable business practices, both in academic institutions and businesses of all sizes.

With this information in hand, the Foundation has made grants since then to five organizations working on projects that help fill the gaps and accelerate progress in the sustainable business landscape:

1. Wayne State University: Amplified college students’ visions for the future of sustainability in a series of pitch competitions.
2. Inforum: Supported the launch and continuation of the Sustainable Business Network of Detroit. This network provides sustainable business education through convenings, roundtables, social media, and a podcast.
3. Southeast Michigan Sustainable Business Forum: Fostered stronger connections between local business organizations and raised awareness of the “Good for Michigan” program.
4. Lawrence Technological University: Supported the Centrepolis Accelerator’s Michigan Climate Wise Business Program, which provides sustainability technical support to small local businesses, including greenhouse gas inventories, assessments, sustainability action plans, and guidance on sustainable practices and environmental action plans.
5. People First Economy: Supported numerous small main-street businesses with consulting and technical assistance and “Good for Michigan” assessments.

In 2022, the Foundation announced its intention to move to a spenddown model and launched a two-year strategic planning process that was steeped in learning about the full range of issues that were most important to Fred and Barbara. This period of discovery and reflection confirmed that sustainable business will continue to be one of the Foundation’s grantmaking priorities for its final decade.

Today, large corporations feel the pressure of market forces and regulations, motivating them to reassess their operations in ways that acknowledge their impacts on the environment. That’s why the Foundation’s investments in sustainable business over the next ten years will focus on supporting small and medium-sized companies as they explore the intersections between people, planet, and profit.

The Foundation will also apply lenses of environmental justice and climate resiliency to our sustainable business grantmaking, recognizing that both areas are critical to the long-term sustainability of businesses. By addressing the historical tension between businesses and organizations focused on these issues, we can help foster collaboration, ensuring that sustainability efforts are inclusive, impactful, and forward-thinking.

Over the next 10 years, we will work to foster favorable conditions that support the growth of the sustainable business sector, help strengthen our regional economy by encouraging the diversification of industries in Southeast Michigan and create opportunities for sustainability leaders to build networks and share resources. In doing so, we look toward a future where these efforts collectively drive a more sustainable and prosperous tomorrow.