How to embed sustainability in businesses
18 October 2022
The foundations of economies and society are inextricably linked to thriving, secure, and resilient business environments. In a similar vein, quality of life is significantly influenced by the money, employment possibilities, and innovations produced by enterprises.
COVID-19 has, however, put to the test the resiliency of many firms as well as their capacity to make money, create jobs, and advance society. Some organizations have reinvented themselves in the wake of the epidemic, and others might have discovered fresh, sustainable business models.
and its potential advantages have already caught the attention of numerous parties. Investor interest in sustainability has dramatically increased, with 40% of responding companies seeing it as a major element, according to the Business for Social Responsibility (BSR)/GlobeScan research, The State of Sustainable Business in 2019.
Consider sustainability in new ways
Businesses may first need to change the way they think about the cost-benefit analysis of sustainability. Most businesses have, up until now, connected sustainability with higher expenses, more reporting, and regulatory obligations, and very rarely with a source of competitive advantage.
After going through the COVID-19 experience, it is more important than ever to consider sustainability as a must for long-term business performance rather than merely a tradeoff or “good to have.” This change may help companies recognize and seize chances for long-term gains, including more robust supply chains, effective corporate processes, innovative, customer-focused products, and improved long-term financial success.
Compare Current Corporate and Sustainability Strategies
The first step in achieving sustainability’s stated potential for improving the operational performance of the organization is to integrate sustainability goals with overall business goals, especially those for setting and delivering financial KPIs. To do this, businesses must examine both their corporate and sustainability strategies to see how closely they align and reinforce one another, or how opposed they are.
The plans can also be put under stress using a variety of criteria, such as peer comparison and competitive pressures, stakeholder expectations for the present and the future, and the overall operating environment. In the future, a business can make use of this knowledge to elevate and integrate sustainability into its whole strategy and operations.