What is Sustainability in Business?

Sustainability in business can be defined in different ways. One of the most commonly accepted definitions comes from a 1987 UN Conference: “Sustainability is the ability to meet the needs of the present without compromising the ability of future generations to meet their needs.” This sounds good, but what does it really mean?

Meeting the Needs of the Present

Think for a moment about our most basic needs: food, water, and shelter. Traditionally throughout human history, these were provided on a local, moderate scale. Food was grown locally, water came from a clean local source such as a river, and shelter was modest. In recent decades, however, this has completely changed.

Now, our food is mass-produced on huge farms using pesticides and then transported halfway around the world, which has resulted in the displacement of small farmers, pollution from pesticides, and significant energy requirements from the transportation alone.

Our water supplies are strained as a result of increased demand from growing populations, reduced supply from the pollution of our waterways, and drought that are related to the effects of climate change.

The size of our shelter has increased as well: the average American home has grew to an all-time high of 2600 square feet in 2013. These homes require great amounts of energy to heat and to cool, not to mention the amount of resources used in building them in the first place and then to furnish them.

Beyond food, water, and shelter, it’s worthwhile to look at our wants in addition to our needs. We want to have the latest electronics and gadgets, the latest fashions, the latest cars, etc. – all of which require raw materials and energy to produce, transport, and maintain, and most of which will ultimately end up in landfills.

Multiply this by 300 million people in the U.S. alone, and you can begin to see how this can create a strain on a planet that has never in its history had to produce so much for so many people.

Sustainability: Beyond Green

Although sustainability in business is often thought of as “going green,” it actually goes beyond that. Green can be limited to environmental issues such as reducing our carbon emissions, conserving water, and minimizing waste. These are, of course, all important activities that are needed for us to work and live within the natural limits of the planet.

Sustainability, however, challenges us to look at both social and environmental impacts.

When the air and water are polluted, those are not just environmental issues – they are public health issues for the people who will breathe that air and drink that water. When development expands into isolated areas, the effects go beyond just the loss of forests and habitat destruction – it’s a cultural issue for indigenous people who may lose their traditional way of life. When oil spills occur, the effects aren’t limited to the loss of animal life and damage to ecosystems – they are a blow to local communities and people whose livelihoods are threatened.

Ultimately, sustainability enables us to understand the interactions among our economic activity, our environmental impacts, and our social impacts.

The Implications of Sustainability for Business

This is why the triple bottom line has emerged as an important concept in sustainable business.

The triple bottom line takes into account that every business needs to be financially profitable – the traditional “bottom line” of business.

Beyond this, it takes into consideration the environmental impact as a result of business operations (such as its use of energy and water) and its social impact as well (such as its treatment of employees and people in the local community). The idea is that for a business to be sustainable in the long-term, it will need to be profitable in a way that operates within natural limits and respects the well-being of people affected by the business.

In short, it will need to factor people, planet, and profit into all business considerations.

In recent years, one movement related to sustainability in business has become important, not just domestically, but internationally. This has been the rise of Certified B Corporations, companies that are using the power of business to create social and environmental change. If you’re a business owner interested in sustainability, I highly encourage you to look into it and join the movement!


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