Most companies are gravitating towards the ability to coexist with, and even enhance their environments.This has fostered new ways and ideas of how most companies and businesses are operating.

The transitioning from the old ways of doing business, to new sustainable ways, for most companies, has had a positive impact on the environment.This  has therefore significantly rendered sustainability to be an important aspect for most companies and businesses these days.

What is sustainability?

Corporate sustainability comes from the concept of sustainable development,which was coined in 1987.The basic premise of this concept  simply put, is economic development that meets the needs of present generationswithout compromising the needs of future generations.

In this light, sustainability could be defined as a practice that is concerned with protecting the planet, halting climate change and promoting social development, without endangering life on Earth or leaving anyone behind. This concept seeks to cover our present needs without compromising resources for future generations.

In this light, sustainability could be defined as a practice that is concerned with protecting the planet, halting climate change and promoting social development, without endangering life on Earth or leaving anyone behind. This concept seeks to cover our present needs without compromising resources for future generations.

What is a sustainable business?

Sustainability in business refers to a company’s strategy to reduce negative environmental impact resulting from their operations in a particular market. An organization’s sustainability practices are typically analysed against environmental, social, and governance (ESG) metrics.

What are the benefits of sustainable practices?

Sustainability has become a top priority for many companies and businesses in recent years. Rightly so because there are several benefits that sustainable business practices affordcompanies, employees, and the environment. In this article however, only a few of these benefits have been covered, and these are as follows.

Reduced costs

Almost every business is in a predicament of finding efficient ways of reducing costs. This is because of the correlation that exists between costs and profits. In this respect, sustainable business practices can serve as a solution to this problem. For example, implementing energy-efficiency measures can reduce a company’s energy bills. This could be effective for businesses that use a large amount of electricity, such as manufacturers and retailers. These lower overhead costs could in turn result in sustainable businesses enjoying increased profits.

Improved brand reputation

Consumers are increasingly becoming interested in sustainable products and services. Implementing sustainable business practices can help a company improve its public image, which could lead to increased sales, profits, and market share. In addition, sustainability can help a company improve its reputation with government officials and stakeholders in the community. This is because it shows them that the business is concerned about environmental protection, social justice, and good governance.

Potential to create new revenue streams

Sustainability practices aid with the creation of new sustainable products. These products then create new marketsand in effect, has the potential to create new revenue streams for businesses and corporations.

To put this into perspective, take electric cars as an example. The electric car industry was born out of the notion that, electric cars (by virtual of being powered by electricity) will have a lesser adverse pollution effect on the planet, relative to cars with fuel powered engines, and this has proven to be true. This has in effect created new revenue streams from the manufacturing and selling of electric cars for companies like – Toyota, Volkswagen, Mercedes Benz, Ford Motor Co etc.

In a nutshell

We’re doing business in an unpredictable world. Climate change, dwindling natural resources, and ever-increasing demands on our energy and food supply are disrupting business operations and supply chains in unexpected ways.

For a company to transform into a successful sustainable business however, it requires a new level of resilience and agility, rooted in responsible practices that preserve our planet.

Therefore, it’s more important now than ever for private and public businesses and companies to fundamentally rethink the way they function and look for areas and ways to incorporate sustainable practices in their operations.

Otherwise, if whalers continue to kill whales with no thought of their extinction. And if timber companies continue to cut down trees with no thought of vegetation and animals. In what kind of world will the next generation live?

About the Author

The author is a chartered accountant, currently working with one of the big four auditing firms.