Importance of Sustainability in Business Essay

So, why sustainability? In what way is sustainability linked to the future of business? Let’s start simple. What does the abstract concept of sustainability even mean? The Brundtland report from the year of 1987 was the first to define the term. The report stated: 'Sustainable development is a development that meets the needs of the present without compromising the ability of future generations to meet their own needs. “ The term can be described in many ways however: “Living well within the limits of nature” (Mathias Wackernagel, author of Sharing Nature’s Interest” or simply put “Not cheating on our children” (former UK Environment Minister John Gummer).

Regardless of the definition, those working in the field of sustainability envision sustainability as having three major pillars: economic, social, and environmental. These three realms of sustainability are referred to as the “triple bottom line”. Businesses that practice sustainability aim to optimize all three simultaneously, as it is clear that in the long term, you cannot have one without the others. If we take the example of China: In the past decade it has reported a 9 percent economic growth. However, now China is recognizing that the environmental costs of that growth which are pollution, health problems, flooding, and resource depletion are now almost entirely wiping out the economic growth.

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The three pillars of sustainability are therefore intimately intertwined. Without aiming for a healthy sustainable environment, we deplete the resources upon which our economy currently still depends and contribute to economic downfall. Without a healthy economy, unemployment is high, leading to a host of social problems. Due to the unhealthy economy, governments lose the revenues to handle the increased social problems. Consequently, without a vibrant community, we do not have active employees to work for businesses. Ultimately, people in crisis also do not have the luxury of being concerned about environmental degradation. Every business must understand these interdependencies and focus on all realms of sustainability rather than singling one out.

The major difference between sustainability and the environmental movement is that sustainability also recognizes the need for a healthy economy. The Author of Believing Cassandra, Alan AtKisson makes a clear distinction between “growth” and “development”. Growth is defined as being bigger, having increased material throughput, and having an increasingly negative impact on nature, while development is described as moving forward and getting better, without having bigger impacts on our motherly planet. Most sustainability advocates agree with Attkisson’s statement that for sustainable development to take place, growth must cease. It is clear to most that, if we, humans do not stop the growth willingly, Nature will stop it willingly. Paradoxically, however, for growth to cease, development must accelerate. For development to accelerate, the rate at which new, cleaner technologies are implemented must increase. For this to happen, a healthy economy is essential to acquire enough money to invest in these innovations.

The major questions, however, still are: Why is sustainability suddenly on the radar screen? In what way is sustainability the future of business? To answer this we must take note, that over the past century, society has increasingly raised its expectations of businesses and sustainable awareness. As to the present day, Society wants it all. The “Millennium Poll” conducted in 2008, surveyed 25,000 people in 23 countries spread over six continents. The majority of the people surveyed expect businesses to go far beyond just making a profit, obeying laws, paying taxes, and providing jobs. These people, instead expect companies and corporations to “exceed all laws, setting a higher ethical standard and helping build a better society for all.” Today there are new significant interests on the priority list. Things like fair treatment of employees, employee health and safety, ending child labor practices, elimination of corruption, and protecting the environment, top the list. All these newly prioritized interests of corporations fall under the triple-bottom-line (economic-social-environmental) framework of sustainability.

Why is sustainability the only solution to the future of business? The answer is simple, however it lies in one crucial problem. As of today, natural resources are a limiting factor. If the growth in global population continues at this rate, according to the best estimates of the UN the population will increase by three billion by the year 2050, then the natural resources, which are already dwindling, will by no means be sufficient to provide for the entire global population. According to the UN Food and Agriculture Organization, over the 1990s alone, the world lost around 64,000 acres of forestland a day, which is about 94 million hectares over the spread of the 10 years. The agricultural sector is facing problems like soil erosion, urban sprawl, desertification, aquifer depletion, and salinization leading to a significant decrease in crop yields. Meanwhile, in the fishing industry, eleven of the fifteen primary fishing grounds are already exceeding their maximum sustainable yield which will eventually lead to complete collapse. This is why sustainability is needed, why every business must implement it, and why it’s the future of business. A sustainable business model, on the contrary to most others, acknowledges the finite limits of nature. Sustainability acknowledges the need to neutralize our wastes and emissions and the urgent need to produce renewable resources and maintain critical ecosystem services.

Furthermore, it must be said that now more than ever, health concerns are rapidly rising due to the effects of pollution circulating around the globe. Studies have been conducted and have revealed that humans across the world are carrying multiple synthetic chemicals in their blood and even in their breast milk. These include things such as industrial solvents, wood preservatives, fire retardants, and of course even pesticides. Many of these are known as highly defective carcinogens or “gender benders”. They can mimic birth hormones, and cause birth defects as well as reproductive abnormalities. These health concerns can only be solved if sustainability is strictly pursued by businesses in the future.

Finally, one major problem we face in today’s world is that environmental issues are becoming entirely global. Years ago, environmental problems used to be relatively isolated. They included things like a tanker running aground, the derailing of a train filled with chemicals, an energy plant exploding or the mishandling of hazardous waste by various companies. However, if we look at our environmental problems now, we can observe that they have exceedingly increased in magnitude. Today’s problems are increasingly global and include global warming, the ozone hole, acid rain, species extinctions, the dying of coral reefs, and the destruction of rainforests. Humanity, up to this day, has not made it clear how it is planning on correcting them. Leaving these issues untouched, without providing solutions will result in the death of this planet. This is why the future lies in sustainability.

However, not all is gloom and doom. All these serious problems indirectly represent interesting business opportunities, believe it or not. Indeed, a considerable amount of the practices needed to correct and face these issues are already in existence and are only excelling. Timber companies are developing a set of sustainable forest practices. Meanwhile, marine sanctuaries have found an effective way to rebuild fish stocks. There are new smart growth practices developing plans on how to create urban environments that reduce the need for automobiles and simultaneously also improve the liability and health of the inhabitants. Furthermore, now, with organic agriculture soil gets built rather than being depleted. Today, with the help of nanotechnology we have come to find promising new products and processes including hydrogen fuel cells. It seems clear that we know what has to be done in most cases, but the longer we wait; the more constrained our options get. The trend is strongly pointing towards sustainability. Businesses can therefore either start implementing sustainable methods or get left behind.

If we look at the development of sustainability in today’s world, we can observe that it is by no means a fringe issue anymore. Have a look at the business sectors: The fastest growing segment of the energy sector is wind power, in the travel industry it’s eco-tourism, in agriculture it’s organic farming and in the investment community it’s socially responsible investments. All these trends point towards one major game changer. Sustainability. Assuming the exponential growth of these segments in their respective sectors continues, then the future of business lies in nothing else but Sustainable Development.