Sustainability is an approach to managing people, profits and the planet – a strategy to ensure long-term success while mitigating risks and creating value. Sustainability is an essential business practice and is often referred to as the triple bottom line, reflecting a company’s commitment to its people, profit, and the planet.
A growing number of investors are focusing on sustainability in addition to financial and social performance when making investment decisions. A sustainable strategy is also the most strategic way to reduce risk, as it allows organizations to prepare for future environmental and economic changes.
Investing in sustainability best practices provides significant cost savings that can improve the bottom line. For example, using recycled office supplies, purchasing ENERGY STAR® appliances, reusing cardboard boxes for shipping, and other green initiatives can save companies a great deal of money in energy costs and operational expenses. In addition, companies that promote their sustainability initiatives can gain a competitive advantage with consumers that want to support their efforts.
The social pillar of Sustainability is about how a company treats its employees and the community it serves. This includes promoting equality, supporting the local economy, and giving back to disadvantaged individuals. It can include everything from donating a portion of profits to charity to hosting employee volunteering activities.
The environment pillar of Sustainability refers to the long-term impact of a company’s policies and practices on people, nature, and the planet as a whole. The environment is in a fragile state, with the loss of biodiversity and increased pollution causing major concerns for humans and wildlife around the globe.
About the Author
