Sustainability is generally about managing resources and contributing the world’s resources in terms of good health, safe water, clean air, etc. However, in business, sustainability breaks down to the triple bottom line (TBL) concept. It is used a lot when speaking about sustainable development, and particularly sustainability in business. The concept includes three pillars: economic, social, and environmental (also known as the three Ps: profit, people, and the planet) which means businesses focusing on sustainable development won’t produce any products or services that will cause harm to the environment and people.
Sustainability in business boils down to two main categories:
- The effect of business on the environment
- The effect of business on the society
To run a successful sustainable business, companies and organizations consider the factors of the triple bottom line concept while making decisions regarding every aspect of the business they run, not only to improve their economic stability but also to make a positive impact on the environment and the society.
A sustainable business builds strategy to positively impact these categories by setting reasonable goals and works on them to achieve.
Some of the common goals are:
- Practicing sustainable materials in the manufacturing process
- Optimizing supply chain to reduce greenhouse gas emissions
- Relying on renewable energy sources to power facilities
- Sponsoring education funds for youth in the local community
When the business fails to achieve goals, the environment and the society get impacted negatively which further leads to consequences like environmental degradation, inequality, and social injustice. On the other hand, when a business achieves its targeted goals and makes even a small but significant impact on either of the aspects, it is considered a sustainable business.
Why is sustainability in businesses important?
Besides protecting the planet and putting a sense of responsibility in customers’ minds, sustainability can boost business achievements. Today, several investors use the (ESG) metrics [environmental + social + governance] to measure a company’s sustainability practices and ethical impact.
According to McKinsey, companies with high ESG ratings have lower costs of obligation and value. This factor helps in improving the company’s financial status and build more audience support.
What is the sustainable business strategy?
There are several ways to make the most and develop sustainability in your business, here are a few steps, to begin with:
1. Evaluate the Problem and Establish Objectives
The first step is to acknowledge the thoughts your company, team members, industry, and client render from the sustainability evaluation process. Prepare a checklist of what problems each of this group prioritizes the most.
2. Establish Your Mission statement
Once you’ve recognized the company’s firm objectives, you’re set to establish your company’s mission. To make your business more sustainable, making a separate mission statement becomes a vital part. Your mission statement should determine your company’s five W’s: Who, What, When, Where, and Why.
3. Create your strategy
When you’ve successfully established the mission statement, lead the way by creating a sustainable business strategy and make sure your company remains profitable. To take care of the cause, it’s important for you to first stay in business. While making sustainable developments, it is proven that businesses stay profitable. To do that, you can refer to the triple bottom line concept that states how a company takes actions to impact profit, people, and the planet.
4. Execute
It is difficult to stand before the people and promise them the results and actually achieve them. Just thinking with a positive mindset won’t bring substantial outcomes. However, with a determined mission and robust strategy, you’ll be all set pacing towards your objectives to achieve them.
Putting it all together
Orchestrating these simple steps will help you achieve a sustainable business. Make your objectives clear and look for the answers; that’s where an actionable plan lies. Once you reach a state where everything is answered, nothing will stop you from becoming a true doer. Don’t put an end to it when you don’t get results. The route for a perfectly sustainable business is long. You may need to detour for making a significant impact.