It is becoming increasingly apparent that sustained corporate success lies in harmony with a healthy society and environment.
At Process Street we also recognize the increasing priority adopting a sustainable business model should have.
In this article, we explain what a sustainable business is, why it is important, how it can benefit your business in both the short and long term, and how you can implement sustainable actions into your business. At the end of the post, we provide you with templates that act as aids to make your common business processes more sustainable.
- What is a sustainable business?
- Why business sustainability is important: The three principles of sustainability
- A model of sustainability: Three-nested dependencies model
- Case studies for sustainable business
- The short term benefits of a sustainable business
- How you can be a sustainable business
Let’s get started.
What is a sustainable business?
Sustainability is defined as:
If we consider sustainability in a business sense, business sustainability is the preservation of a business through time. This means infinite business success and profitability.
Who wouldn’t want that?
Despite the attractive outcome, business sustainability as a concept did not come about until the early 70s and was met with controversy. Publications such as The Limits To Growth addressed business economics beyond the profit and loss statement. This was the dawn of the green business model.
The green business model, or a sustainable business, consider social and environmental dimensions that envelop and interact with business economic development.
In short, to attain a sustainable business, environmental, social and financial demands need to be managed and regulated.
The green business model as a domain once attracted little attention. But there has been exponential growth in the number of businesses and organizations looking to minimize their social and environmental impacts. Many corporate giants, such as Wal-Mart, have named sustainability as a key priority, understanding its importance for business success.
Why business sustainability is important: The 3 principles of sustainability
Business sustainability consists of three principles, also known as pillars:
- Pillar one: The environment
- Pillar two: The society
- Pillar three: The economy
The next part of this article explains the impacts these three pillars have on business when they are not managed sustainably. We will also consider how these pillars interact with each other in a business sustainability model.
Pillar one: The environment and its impacts on business
News reports suggesting that our planet is heading towards catastrophe aren’t rare occurrences. The Guardian tells us that glaciers are melting at a rapid pace. The New Yorker broadcasts that the state of Louisiana is losing a football field of land every ~1.5 hours due to rising sea-levels. The Atlantic informs us that the Brazilian Amazon burns under the weight of unsustainable agricultural practices.
The human impact on planet Earth – in addition to its animals and plants – is outlined in the quote below:
“Humans have caused the annihilation of 83% of all wild mammals and half of all plants, the authors of the report found. And it’s not just that humans are wiping out wildlife — they’re also determining the animals and plants that remain. Of the birds left in the world, 70% are poultry chickens and other farmed birds. And of the mammals left in the world, 60% are livestock, 36% are pigs, and a mere 4% are wild.” – Erica Sanchez, Jana Sepehr, and Joe McCarthy, Humanity Has Killed 83% of All Wild Mammals and Half of Plants: Study
As upsetting as such news is on a personal level, we stand back and ask ‘what does this mean for business?’
This is the question that pillar one, the environment, addresses.
According to reports from 2018, $125 trillion is the financial worth of nature.
All businesses utilize our planet’s resources to obtain a slice of the $125 trillion pie. Whether that is using materials for physical products or energy, or relying on impor