Sustainability (Business): Meaning, Types & Principles

Sustainability is a big topic these days. Consumers and companies are paying a lot of attention to it. But while average consumers like you and I only spend a few extra bucks buying an eco-friendly product, companies are pouring millions, if not billions, into sustainability. Are you curious why this is the case? Join us today and explore the topic of sustainability in business.

What Is Sustainability in Business?

Any business activity will affect the environment in one way or another, either through natural resource use or product waste. The impact might be small, but it will add up over time and take a heavy toll on our planet. How can a business achieve its economic goals without draining the Earth? The answer is to invest in sustainability.

Sustainability in business refers to business practices that positively impact the environment, communities, or society as a whole.

Overall, business sustainability addresses two main issues:

The impact on the environment.
The impact on society.

But companies not only tackle responsibility to minimize their negative impact on the environment and society, but they also do it to ensure a sustainable future for themselves and their clients.

For example, McDonald’s was criticized for using too much fat and salt in their food, which contributed to the obesity pandemic. As a result, many of their customers turned to healthier brands, bringing a slump in the company’s sales. McDonald’s had to switch their strategy to become more sustainable to win back customers. They began cutting sodium, oil, and fats while using whole grains for burger buns and wraps. This effort has a long-term benefit to both the company (economic performance) and consumers (health).1

Sustainable goals are often tied to an environmental, economic, or social aspect of the company or a community. For instance:

Reduction of greenhouse gas emissions (environmental),
Reduction of land and water pollution (environmental),
Use of sustainable materials (environmental and economic),
Renewable energy usage (economic),
Support of underprivileged societies (social),
Use of green-certified products (environmental).

In practice, these goals can be achieved by:

Using eco-friendly materials for production,
Optimizing the supply chains to reduce carbon footprint,
Powering business facilities with renewable energy sources like solar and wind power,
Supporting local communities through development plans or education funds.