Sustainability in business is increasingly important in light of climate change and the frequent natural disasters which come each year. Companies of all kinds, from all industries, are looking for ways to be more sustainable. And it’s not just a matter of helping the environment; sustainability is an investment decision. Many financial backers (sometimes called ESG investors) are no longer supporting companies that don’t demonstrate sustainability.
Considering the shift in priority, it’s important for you to understand what makes a sustainable business. There are three basic areas of sustainability in business, which are:
- Social sustainability
- Environmental sustainability
- Economic sustainability
Truly sustainable businesses need to not only reduce their environmental impact, but also be sure they are treating their workers and surrounding community well, as well as that they stay profitable. The good news is that these elements of sustainability feed into one another; for example, using fewer resources ends up saving you money, since you no longer produce as much waste.