In simple terms, sustainability means living a life whereby we can meet our own needs without compromising natural resources that will impact future generations negatively. Sustainability, however, is not just environmentalism. Sustainability in business would refer to a company’s strategy put in place aimed at reducing the negative environmental impact caused by the company’s operations in a particular market. An organisation’s sustainability actions are usually measured against environmental, social, and governance (ESG) metrics.

Let’s break down sustainability in business.

Sustainability in business commonly addresses two main areas:

• The effect your business has on the environment
• The effect your business has on society

The goal of following a sustainable business strategy is to make decrease your negative impact on at least one of those areas. When companies fail to take responsibility in these areas, the opposite can happen.

Sustainable business strategies are unique to each company as they will link to the larger business goals and vision or mission. For example, sustainability in business can mean:

• Using sustainable materials in the manufacturing activities
• Optimising supply chains to decrease greenhouse gas emissions
• Trusting renewable energy sources to power facilities
• Sponsoring education funds for youth in local areas or communities

Companies that thoroughly incorporate sustainable practices into their operations are seeing valuable business benefits. These could include:

• Competitive advantage

Being recognised as a sustainable business can improve your positive brand awareness and assist in attracting consumers that favour companies that actively engage in sustainable practices.

• Talent acquisition

Employees seeking purpose-driven employment choose to work for sustainable and socially responsible companies. By building a reputation as a sustainable business, you can attract and retain the right employees for your company.

• Revenue growth

By executing sustainable strategies that reduce resource consumption and improve operational activities, today’s choices to make change become tomorrow’s winners as they improve their bottom line. While efforts that have a greater overall impact may be more costly to implement at the outset, the long-term gains will substantiate the investment.

The key to a successful sustainability strategy is to balance environmental drivers with key differentiators and market demands. If you need help implementing a sustainable strategy, contact NDK today.