What is sustainable development and why is it important for businesses?

What is sustainable development? Learn how it drives long-term business success, supports healthy forests, and aligns with global environmental goals.

September 9, 2025

Sustainable development means improving lives today while protecting the planet and resources for future generations.

For businesses, sustainable development means sourcing and producing responsibly (such as choosing FSC-certified materials) so supply chains support people and nature today while protecting resources for the future.

In a push to support global progress, the United Nations adopted the Sustainable Development Goals (SDGs) in 2015.

These 17 goals provide a shared framework for action, calling on governments, industries, and communities to build a more sustainable and inclusive future together.

This article breaks down the meaning of sustainable development, explains how the SDGs help drive global progress, and explores how responsible land use and business leadership can support lasting change.

Table of contents:

3 key principles of sustainable development
What sustainable development looks like in practise
Why the 5 Ps matter for sustainable development goals
How FSC is supporting sustainable development
Put sustainable development into practise

3 key principles of sustainable development

The 17 SDGs reflect the importance of sustainability in shaping a future where people and nature can thrive together. They focus on three main pillars: economic growth, environmental care, and social progress.

1. Meet present and future economic needs

Sustainable development means meeting today’s economic needs without putting future generations at risk.

Several SDGs reflect this balance. Zero hunger (SDG 2), good health and well-being (SDG 3), quality education (SDG 4), and climate action (SDG 13) address urgent priorities while building long-term stability.

According to the World Health Organization, 582 million people may be chronically undernourished by 2030, highlighting the need for solutions that protect both present and future well-being.

Short-term decisions often lead to long-term harm. Industrial activity pollutes water systems. Intensive farming may increase yields initially but degrades soil over time. These patterns undermine progress and resilience.

And the costs are rising. Extreme weather events caused 2 trillion US dollars in damages over the last decade, including USD451 billion in just the past two years.

Fortunately, there are better options that deliver strong returns. Every USD1 invested in landscape restoration can return up to USD30 in benefits, from stronger food security to more jobs and greater climate resilience.

When we invest in solutions that meet both present and future needs, the result is more stable and equitable for all.

2. Protect the environment

Healthy ecosystems are essential for life. Forests regulate water cycles, store carbon, and support biodiversity. When forests are damaged, entire systems break down, affecting food production and access to clean water.

Every year, forests absorb 16 billion metric tonnes of carbon dioxide, making them one of the most effective natural solutions to climate change.

But according to the United Nations, that ability is under threat. The world loses 13 million hectares of forest annually, and 3.6 billion hectares of drylands have already been degraded.

Forests also play a critical role in protecting biodiversity. They cover 30 per cent of the Earth’s surface and shelter 80 per cent of the world’s terrestrial species. When forests disappear, ecosystems collapse and species lose their habitats.

Protecting nature is central to several SDGs, including climate action (SDG 13) and life on land (SDG 15). Strategies that work with natural systems rather than against them include:

Preserving existing carbon sinks through forest conservation
Restoring degraded land and biodiversity through ecosystem restoration
Maintaining water cycles and reducing soil loss through sustainable land use

Without these efforts, global progress on food security, clean water, and climate resilience will fall short.

3. Promote social responsibility

Responsible development puts people at the centre of environmental progress. Forests do more than store carbon or host biodiversity. They provide livelihoods, cultural continuity, and economic security for communities around the world.

With responsibly managed forests, social outcomes improve alongside environmental ones.

Sustainable forestry supports stronger communities through:

Indigenous land rights: Deforestation is 20 per cent lower in areas managed by Indigenous communities, highlighting the value of traditional stewardship and local governance.
Livelihood security: Roughly 1.6 billion people rely on forests for food, fibre, and income. Sustainable practices help safeguard these resources and support long-term community stability.
Shared responsibility: Experts estimate that up to 39 per cent of tropical deforestation is tied to the international trade of commodities sold in high-income markets. Protecting forests requires coordinated action across governments, industries, and supply chains.

These social outcomes advance SDG 1 (No Poverty), SDG 8 (Decent Work and Economic Growth), and SDG 10 (Reduced Inequalities). Forest management that prioritises fair labour, community engagement, and Indigenous rights builds more equitable economies and resilient ecosystems.

An image showing the three pillars of sustainable development.

What sustainable development looks like in practise

Turning global SDGs into reality requires action from both businesses and consumers.

This collaborative approach spans everything from protecting natural ecosystems to transforming how companies operate and individuals make purchasing decisions.

How businesses lead sustainable development

Companies are adopting sustainable business practices across their operations, many turning to sustainable forestry to safeguard biodiversity and support local communities. Others are investing in renewable energy to reduce emissions and create new employment opportunities.

Circular manufacturing is helping companies keep materials in use longer, lowering waste and boosting efficiency. However, fair labour practices remain essential for building resilient supply chains and protecting human rights.

At the same time, climate resilience has become a priority. With global catastrophe losses projected to reach USD145 billion in 2025, preparing for environmental risks is a part of long-term success.

What businesses can do: Adopt certification standards like those of the Forest Stewardship Council® (FSC®), invest in renewable energy and climate resilience, and embed fair labour practices into their supply chains.

How consumers can support sustainable development

Consumers support long-term sustainability through the choices they make every day. Choosing and requesting certified products, such as FSC paper and packaging or responsibly sourced coffee, communicates a demand for businesses to prioritise ethical and sustainable practices.

These decisions also extend to daily habits at home. Opting for energy‑efficient solutions, like electric vehicles, solar panels, or efficient appliances, reduces environmental impact while lowering household costs.

At the same time, supporting businesses that embed energy efficiency into their operations helps scale these practices more broadly.

Buying locally produced food and materials adds another layer of impact by reducing transportation emissions and strengthening community economies.

What consumers can do: Choose certified forest products, support brands with ethical sourcing policies, and reduce personal waste through reuse and recycling.

Why the 5 Ps matter for sustainable development goals

The 5 Ps (People, Planet, Prosperity, Peace, and Partnership) summarize the core intention behind SDGs. They reflect priorities that support long-term human and environmental well-being through global policy. Plus, embedding these themes into strategy helps businesses contribute to meaningful progress while building greater resilience.

Each P represents a core focus area:

People: Support dignity, opportunity, and basic rights for all
Planet: Conserve natural systems and promote ways to help the environment through sustainable land use
Prosperity: Foster inclusive economic growth and innovation
Peace: Build just and accountable institutions
Partnership: Promote collaboration across governments, industries, and communities

These five areas encourage long-term thinking and help businesses align with climate goals, resource security, and community stability – all critical to business resilience.

The scale of today’s challenges makes this integrated approach essential. Fossil fuels drive more than 75 per cent of global greenhouse gas emissions. At the same time, over half of all degraded land is farmland, threatening food production and rural livelihoods.

Forests remain a vital solution, as they provide up to USD100 billion in goods and services each year, including clean water and healthy soil.

An image highlighting the “5 P’s” of sustainable development.

How FSC is supporting sustainable development

FSC advances sustainable development through globally recognised standards.

This commitment extends through the FSC Indigenous Foundation, which partners with Indigenous communities with the goal of co-creating forestry solutions that build on traditional knowledge and governance.

The FSC label provides a trusted way for businesses and consumers to identify products that meet strict environmental and social standards, supporting ethical supply chains and long-term forest health.

Responsible forest management also brings social and economic benefits in forest-dependent regions, such as:

Fair wages
Safe working conditions
Community engagement

Transparency and accountability are central to FSC’s system. Independent audits and public reporting give stakeholders confidence in certified products, while education and advocacy expand awareness and adoption of sustainable forestry practices.

Taken together, these efforts aim to position FSC as a global benchmark for sustainable forestry and a key driver of sustainable development.

Put sustainable development into practise

Sustainable development offers a long-term approach to addressing global challenges while promoting long-term economic growth.

FSC aims to support this vision through trusted standards, inclusive partnerships, and tools that turn commitments into measurable progress. With FSC’s Verified Impact platform, companies can track and communicate their contributions to sustainable development.

Explore how FSC’s forest-based solutions and certification system can help embed sustainable development into your strategy and deliver real results.

Additional resources

For global insights on sustainable forestry, explore the work of the Food and Agriculture Organization, a leader in monitoring forest health and land use worldwide.

Learn how the United Nations shapes sustainability policy through international collaboration and the Sustainable Development Goals.

Read more from the World Resources Institute, which provides data-driven strategies to support forest conservation and climate action around the globe.

To see how certification is being applied globally in different regions, visit FSC’s work in Africa, Australia, and the Asia Pacific regions.