(The three pillars of sustainability are also discussed in our podcast, here: https://www.youtube.com/watch?v=gzMBWHtFY-4 )
According to Harvard Business School sustainability in business refers to doing business without negatively impacting the environment, community, or society as a whole.[1] If we look the economic viability through this prism, we can draw the conclusion that sustainability in doing business can addresses two main categories, namely the effect a business has on the environment or on society.
Faced with global environmental problems, such as global warming, enterprises have become important players in environmental protection. By fulfilling their environmental responsibilities, enterprises can create a good external image and gain support from the public and government, thereby increasing the influence of their enterprises.[2]
Ideally, a sustainable business will have a positive impact on both these two areas, however if we want to have an economic viability at least one of these two areas has to be positively influenced. Undoubtedly “a project is economically viable if the economic benefits of the project exceed its economic costs, when analyzed for society as a whole. The economic costs of the project are not the same as its financial costs – externalities and environmental impacts should be considered.”[3]
Nowadays, a growing number of people are aspiring toward lifestyle changes that support increased sustainability for themselves and for the societies in which they live. Businesses have to answer to these demands, which include a shift towards efficient consumption (less waste) among others.
The view of responsibility encourages businesses to balance long-term benefits with immediate returns, and the goal of pursuing inclusive and environmentally sound objectives. This covers a broad array of possible practices. Cutting emissions, lowering energy usage, sourcing products from fair-trade organizations, and ensuring their physical waste is disposed of properly and with a smaller carbon footprint would qualify as moves toward sustainability.[4]
An easy way to apply the first pillar is to follow the Sustainable Development Goals (SGDs) and the Corporate Social Responsibility (CSR) framework. Following the basis of the CSR management will help in the identification of the relevant aspects. On the other hand, the SDGs will help in aligning the ethics of the company with the main global sustainability trends, encompassing both social and environmental dimensions.
[1] https://online.hbs.edu/blog/post/what-is-sustainability-in-business (visited on 05.12.22 at 14:17).
[2] https://www.frontiersin.org/articles/10.3389/fenvs.2022.966479/full (visited on 05.12.2022 at 15:17).
[3]https://ppp.worldbank.org/public-private-partnership/assessing-project-feasibility-and-economic-viability (visited on 02.12.2022 at 10:40).
[4] op. cit. https://www.investopedia.com/terms/s/sustainability.asp (visited on 05.12.2022 at 14:41).
On a European level, with the introduction of the Green Deal, the Eu has set an ambitious goal to “improve the well-being and health of citizens and future generations by providing: fresh air, clean water, healthy soil and biodiversity; renovated, energy efficient buildings; healthy and affordable food; more public transport; cleaner energy and cutting-edge clean technological innovation; longer lasting products that can be repaired, recycled and re-used; future-proof jobs and skills training for the transition and globally competitive and resilient industry.”