Sustainability

What is sustainability?

In the broadest sense, sustainability refers to the ability to maintain or support a process over a long period of time. In business and politics, sustainability aims to prevent the depletion of natural or physical resources. Resources must remain available in the long term. In other words, sustainability means meeting our own needs without compromising the ability of future generations to meet their own needs. Amid growing concerns about anthropogenic climate change, biodiversity loss, and pollution, the world has moved towards sustainable practices and policies, particularly through the adoption of sustainable business practices and increased investment in green technologies.

In addition to natural resources, we also need social and economic resources. Sustainability is not just about the environment. Most definitions of sustainability also include social justice and economic development. Sustainable policy, for example, focuses on the future impact of a particular policy or business practice on people, ecosystems and the economy as a whole.

The three pillars of sustainability

Sustainability principles refer to the three core concepts of environmental, social and economic sustainability. A company can only be considered sustainable if it can conserve natural resources, support a healthy community and workforce, and generate sufficient revenue to survive economically in the long term.

Ecological sustainability

Environmental protection is the most frequently discussed element. Environmental sustainability requires the protection of the environment, including natural resources such as water, energy and other raw materials. It is therefore about reducing the carbon footprint, water consumption, non-degradable packaging and wasteful processes as part of a supply chain. The aim is to prevent damage to ecosystems and promote biodiversity.

Economic sustainability

Economic sustainability, for example, describes an economic system that is not exclusively profit-oriented, but is also geared towards ensuring a high quality of life for present and future generations. Economic sustainability therefore takes into account the social and ecological consequences of economic activity. To be economically sustainable, a company must be able to ensure that it will have sufficient resources, labor and customers for its products into the distant future.

Social sustainability

Universal human rights and basic needs are achievable for all people who have access to sufficient resources to keep their families and communities healthy and safe. In other words, it is about ensuring that basic needs and equal opportunities are met. This means that everyone should have access to all resources. Today, social sustainability is still concerned with gender equality, for example.

The main objectives of sustainability

In 2012, the United Nations Conference on Sustainable Development convened to discuss and develop a set of goals to work towards. They emerged from the Millennium Development Goals (MDGs), which promised success in reducing global poverty but also acknowledged that much more needed to be done. The SDGs ultimately contained a list of points that included the following:

• The end of poverty and hunger
• Better education and health standards – especially in terms of water quality and better sanitary facilities
• gender equality
• Sustainable economic growth while promoting jobs and stronger economies
• All this and more, while tackling the effects of climate change, pollution and other environmental factors that can and do affect people’s health, livelihoods and lives
• Sustainability includes the health of land, air and sea

In summary, the concept was recognized that nature has certain rights, that humans are responsible for the world and that it is important to put humans first in solving the above-mentioned global problems through environmental and consumption management (e.g. reducing packaging and avoiding food waste and promoting the use of recyclable materials).

Corporate sustainability

As already mentioned, the corporate context is not just about environmental protection. Harvard Business School identifies two ways to measure sustainable business practices. The company’s impact on the environment and the company’s impact on society. The aim of sustainable practice is to have a positive impact on at least one of these areas.

This understanding of responsibility encourages companies to find a balance between long-term and immediate benefits and to pursue comprehensive and environmentally friendly goals. It covers a wide range of possible practices. Reducing emissions, cutting energy consumption, sourcing fairly traded products and ensuring proper waste disposal by reducing carbon emissions can all be seen as steps towards sustainability.

Many companies have also set themselves sustainability targets. Roche, for example, wants to reduce its entire ecological footprint by half by 2030. Novartis wants to be climate neutral by 2025 and carbon, water and plastic neutral by 2030. Nestlé also wants to be carbon neutral by 2050.

Advantages and disadvantages of corporate sustainability

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In addition to the social benefits that result from improving the environment and increasing human needs, there are also financial benefits for companies that successfully implement sustainability strategies.

• Using sustainable resources can improve a company’s long-term profitability, just as reducing waste and pollution can help a company save money.
• Image enhancement through environmental awareness: Sustainability can increase the attractiveness of a company. Customers can value the ethical aspects of a company so much that they are prepared to pay more for the products. Companies that are said to have a negative social impact often fall in the ratings.
• Lower employee turnover thanks to sustainable working conditions

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• Possibly higher production costs. For example, it is very difficult to monitor conditions abroad. For this reason, some products can no longer be manufactured abroad.
• Greater communication effort: As the more expensive production costs are also reflected in the prices, customers must be informed that this is the case due to increased sustainability principles.