What is Sustainability in Business?
Sustainability in business refers to running business without negatively impacting the environment, community, and society. It is also called corporate responsibility. Environmental and social issues are often considered to conflict with profit. Such as, using non-renewable resources is not a sustainable practice, but tapping renewable resources can be costlier. However, companies practicing sustainability and preferring green alternatives can reduce their energy cost, carbon footprint, and business risks in the long term.
What are the types of sustainability?
Environmental, social, and economic are the three types of business sustainability. They are also referred to as the triple bottom line. Some of them are as follows:
- Environmental sustainability: Companies need to increase their energy efficiency and reduce carbon footprint. They should focus on reducing waste, recycling used water, and other environmental issues. An example may be using solar panels for lighting the offices.
- Social sustainability: This focuses on the well-being of the people attached to the business such as customers, stakeholders, surrounding community, employees, or investors. Companies should adopt fair labour practices, take care of employee well-being, and develop responsible supply chain partnerships.
- Economic sustainability: With an emphasis on long-term corporate profitability, this covers matters like risk management, corporate governance, regulatory compliance, moral business conduct, and accounting transparency.
What are some sustainability issues?
Companies are recognising their responsibility and addressing complex sustainability problems. They are realising that businesses have a dependency on properly functioning environmental and social systems. Here are some sustainability issues that the companies should focus on:
- Climate change: Companies are increasingly switching towards greener alternatives to energy. They are trying to use renewable sources to increase their energy efficiency. This will not only save their energy costs in the long term but will also help them to reduce their carbon footprint.
- Social Injustice: Companies work around the people of the society. They can focus on small social issues, such as improving low-performing schools in their community. This can be done by providing mentorship and resources to help the schools to transform.
- Income equality: Companies should address the gender pay gap within their premises. They should practice equal pay for equal work for all the employees working for them.
- Depletion of natural resources: Companies should mindfully use natural resources like water. Office premises use a lot of water. A rainwater harvesting system and a water recycling system should be installed to reduce the wastage of water.
- Fair working conditions: Companies should make policies to address discrimination and harassment. Make sure your staff is aware of all the policies and can reach the right place for complaints.
- Pollution: Companies can take initiatives like tree plantation, cleaning drives, or some other activities to reduce the harmful effects of pollution. Furthermore, it can cut carbon emissions by allowing the staff to work from home. This will reduce commuting and hence emissions from them.
Why is sustainability important in business?
Sustainability is extremely important for business ethics and growth. Customers and investors today use corporate responsibility factors to analyse a company’s impact. The benefits of implementing sustainable policies include:
Building brand image
Sustainable practices make a company stand out from its competitors. It helps to create a brand image and attracts more customers. Youth today are more concerned about environmental issues and are looking for more sustainable brands. Eco-friendly products are gaining popularity among consumers. Adopting sustainable practices shows customers that your company respects and agrees with their beliefs regarding environmental care. This helps the companies to grow in the area of eco-friendly products.
Attracting employees
Modern professionals are attracted to employers who value them. Millennials and Gen Z are likely to work for companies that have sustainable practices. By showing commitment to the community and environment, you can retain employees who prioritise sustainability and improve the workforce culture. Satisfied employees boost the productivity of the company.
Bringing change
Companies can cooperate with individuals or other organisations to bring meaningful changes around them. This can bring a positive change in sustainable sourcing, policy change lobbying, and working conditions.
Building community relationships
Companies that practice sustainability can help to foster a community that promotes sustainability. It aids in developing relationships with the community and other parties working for the well-being of the community. Government and media recognise these initiatives of the company, helping them build a reputation for the company.
Securing the future
Poor sustainability management can damage your business’s brand image. It diverts your resources from business to legal issues. Implementing sustainable policies can protect your organisation and employees in the future.
How to create a sustainable business strategy
There are several ways to improve the sustainability of the business. Changing the policies of the company, and improving work-life balance are some practices that can improve sustainability. Here are some strategies to maintain sustainability in business:
Identify the problems and assess the impact
Companies should first determine what sustainability means to their business. Then they need to identify the problems in maintaining sustainability. For this, consider asking questions like how much waste the organisation is creating, why the hiring practices aren’t attracting good professionals, and so on. Answers to these questions will help you in assessing your impact on these issues. This will allow you to generate solutions to these problems and improve the conditions.
Set your goal
After understanding your impact, you can develop a strong strategy to maintain sustainability in these areas. You need to establish the mission of the company by determining the priorities of each goal. You can divide them into short and long-term goals. Having clear goals helps you to develop strategic objectives. Some common sustainability goals may include diversity and inclusion, employee satisfaction, resource utilisation, fair practices, community development, and retention.
Revise programs and policies
Companies should revise their programs and policies to set a standard. This motivates the employees and stakeholders to make sustainable choices. Small changes can be the starting point of large-scale impacts on the environment or society. Reducing the energy consumption of the office by switching off the lights when employees are not there is a great example of making a sustainable choice.
Educate employees, customers, and stakeholders
It is important to educate the employees, customers, and stakeholders about the sustainability initiatives. This helps them to align with the organisation’s mission and create a positive impact on sustainability. Raising awareness among the stakeholders helps them to make sustainable choices. You can do this by investing in sustainable education practices. Hosting lectures, training sessions or ethical advertising can also help educate about these issues.
Pick up suppliers aligning with your goals
Businesses may have ties with different vendors, suppliers, or partners. Don’t assume that they share your business sustainability values. You should set some standards for choosing the suppliers. Look for suppliers who align with your values and goals. This will help in fostering a strong relationship with the suppliers and vendors, leading to an increase in productivity.
Implement greener alternatives
Adopting and implementing green technologies will give you a range of technical solutions to maintain sustainability. It will help to reduce the waste production at your company, and better utilisation of natural resources. This will reduce the overall negative impact you have on the environment. In the long run, these initiatives will save a lot of costs for the company.
Make contributions to charitable works
Your business can make a positive impact on the community by contributing to charitable organisations, non-profits, and charities. You can have a greater influence if you support organisations that are already at the forefront of sustainability.
Examples of Sustainability in Business
Business sustainability initiatives give returns in the long run. The company can increase its profitability and productivity by implementing sustainable business strategies. Some examples of sustainability in business are:
- Using natural cooling methods to control the temperatures in IT facilities. This relies on using renewable resources like solar energy which helps the company to reduce its carbon footprint.
- An airline may generate some amount of greenhouse gases. Recording these emissions and offsetting them by forestry, solar, and wind projects may help to bring balance in the environment.
- Using electronic vehicles for commuting of employees or transportation of products is also another example of sustainability in business.
- The company can organise a paid volunteer day when employees can participate in cleaning campaigns or plantation drives.
- Water features with low flow in the washrooms and automated lighting fixtures that switch off when no one is in the room can be installed by businesses.
In India greatest number of companies are committing to sustainability management. However, there is much to be done to increase sustainability in business. Businesses should step up their efforts and let governments know that they require ambitious policies before they can invest in a zero-carbon future. A sustainable and low-carbon future will have a double impact, one on the environment and other on the economy.
