Understanding what sustainability is and why it matters

Sustainability is crucial for the health of our planet and the well-being of present and future generations. Practicing sustainability involves the responsible and balanced use of the planet's resources. It includes actions large and small that help support the long-term health of the world’s ecosystems and the species that live within them.

As environmental and social issues continue gaining prominence, more businesses and individuals are recognizing the importance of making sustainability a priority in professional operations and in daily life.

By embracing sustainable practices, individuals and businesses alike can help mitigate climate change risks, support economic innovation, and foster individual and collective well-being.

Explore why sustainability is important and how it impacts businesses, people, and the planet.  

Table of contents: 

• Why is sustainability important?
• What is sustainability in business?
• Benefits of sustainability in business
• Integrating sustainability into business strategy
• What is individual sustainability?
• Benefits of individual sustainability efforts

Why is sustainability important?

At its core, sustainability allows individuals and businesses to address pressing environmental challenges such as climate change, pollution, and resource depletion.

Climate change, driven primarily by human activities such as burning fossil fuels and deforestation, poses a significant threat to ecosystems, biodiversity, and human societies worldwide.

Sustainable business practices play a vital role in mitigating climate change by:

• Reducing waste and promoting recycling 
• Implementing sustainable supply chain practices 
• Transitioning to renewable energy sources 
• Adopting other climate change solutions into everyday business practices 

What is sustainability in business?

Sustainability in business refers to integrating environmental, social, and economic considerations into organizational practices and everyday operations. The goal is to meet the needs of the present without compromising future generations’ ability to meet their own needs.

It's about recognizing that the planet has a finite number of resources which society at large relies upon – whether it is raw materials for life saving drugs or clean water for beverage manufacturing. Recognizing and respecting the environment is a critical element of mitigating and actively seeking to have positive impact. 

This is possible through various practices, from finding ways to cut emissions to implementing more transparent supply chains to create a circular economy. 

In general, there are three key components to sustainability in business:

• Economic sustainability: This aspect emphasizes the long-term viability of economic activities, ensuring profitability while maintaining ethical business practices and contributing to society.
• Environmental sustainability: Businesses committed to environmental sustainability strive to implement practices that foster healthy ecosystems, reduce finite resource and raw material consumption, waste generation, and greenhouse gas emissions.
• Social sustainability: Social sustainability focuses on fostering equitable and inclusive workplaces, supporting local communities and Indigenous Peoples, and upholding human rights throughout the supply chain. It involves initiatives such as fair labour practices, diversity and inclusion efforts, and community engagement projects.

Businesses whose products are certified by the Forest Stewardship Council (FSC®) represent an example of promoting sustainability in business. FSC certification helps ensure that wood and paper products come from responsibly managed forests where biodiversity is preserved, and local communities are supported.  

Benefits of sustainability in business

Beyond its environmental and social benefits, sustainable practices can deliver significant advantages for businesses.  The five key areas below show how a focus on sustainability can translate to tangible improvements in the bottom line, brand reputation, and overall operational efficiency. 

1. Enhance brand reputation  

By demonstrating a commitment to environmental and social responsibility, businesses can attract environmentally conscious consumers who prioritize ethical values in their purchasing decisions. One study by PwC found that over 8 out of 10 consumers said they’d pay up to five per cent more for sustainably produced products. Given this, it’s clear that consumers as a whole are becoming more environmentally conscious – and ignoring this could harm businesses.

Business benefit: A positive brand reputation can lead to increased customer loyalty, as consumers tend to develop a sense of trust and affinity towards brands that align with their values.  

2. Access new markets  

As awareness of environmental and social issues grows globally, there is a rising demand for sustainably produced products and services. By incorporating sustainability into their offerings, businesses can tap into these emerging markets and expand their customer base.

Additionally, pursuing sustainability can lead to increased market share, as businesses differentiate themselves from competitors by offering environmentally friendly alternatives.

Business benefit: Access to new markets can drive revenue growth and position businesses for long-term success in a rapidly evolving marketplace. 

3. Reduce risk and increase resilience  

Pursuing sustainability in business can reduce risk and enhance resilience to environmental, social, and economic challenges.

For example, businesses can invest in building sustainable supply chains. Incorporating sustainable sourcing practices can reduce reliance on single suppliers or regions prone to instability, mitigating risks associated with supply chain disruptions. Additionally, implementing transparency and traceability measures in the supply chain can help identify potential risks related to labour rights violations, environmental degradation, or unethical practices. 

Sustainability practices can help mitigate several other key risks that businesses face in today's dynamic environment: 

• Resource scarcity: By promoting resource efficiency and responsible sourcing, companies can reduce their dependence on potentially volatile or depleting resources, ensuring long-term operational stability. 
• Climate change impacts: Implementing sustainable practices can help businesses adapt to the increasing frequency and severity of extreme weather events, supply chain disruptions, and regulatory changes driven by climate concerns. 
• Reputation damage: Consumers are increasingly holding businesses accountable for their environmental and social impact. Sustainable practices can help mitigate reputational risks associated with negative environmental or social practices. 
• Regulatory compliance: Proactive sustainability efforts can help businesses stay ahead of evolving environmental regulations, avoiding costly fines or operational disruptions.

Business benefit: By reducing risk by adopting sustainable practices and working them into a strategic plan, businesses can safeguard against potential disruptions, ensuring continuity and stability in operations. 

4. Drive innovation for a competitive advantage 

Sustainability can foster innovation by challenging businesses to develop new products, processes, and business models that are environmentally friendly and socially responsible.

These initiatives – like creating product sourcing transparency or lower-waste product cycles – can help establish businesses as forward-thinking leaders in sustainability.

Business benefit: Driving innovation through sustainability fosters a unique competitive advantage, positioning businesses as industry leaders and enhancing market differentiation. 

5. Improve stakeholder relationships  

Investors are increasingly considering environmental, social, and governance (ESG) factors when making investment decisions, and businesses with strong sustainability performance are more likely to attract investment and enjoy greater investor confidence.

IBM found that a significant portion (80 per cent) of individual investors expressed an intention to incorporate sustainability or social responsibility considerations into their investment decisions in the following year.

Business benefit: Improving stakeholder relationships through sustainability initiatives can enhance trust, loyalty, and collaboration, ultimately leading to increased investor confidence. It enhances the company's reputation and contributes to long-term sustainability and success. 

Integrating sustainability into business strategy

Sustainability is no longer a niche concern; it's fundamental for businesses that want to thrive in today's market. Consumers are increasingly making purchasing decisions based on a company's environmental and social impact. Additionally, regulations and investor demands are placing more emphasis on responsible practices.

Integrating sustainability into the company’s core strategy can demonstrate commitment to a healthy planet and strong communities. This creates a win-win scenario, allowing businesses to build brand loyalty, attract responsible investors, and potentially reduce costs through resource efficiency.  

Numerous frameworks and tools are available to measure sustainability performance and communicate progress to stakeholders. For companies in manufacturing sectors, achieving FSC's chain of custody certificate demonstrates a commitment to sourcing materials from responsibly managed forests.

This globally recognized certification provides independent verification, allowing organizations to transparently showcase their commitment to sustainable practices throughout the supply chain.

This is just one example of how to foster sustainability within a business. Explore all FSC’s certifications and licences to learn more about how businesses can make a positive impact on the environment and the world.  

What is individual sustainability?

While corporations hold a great deal of power (and responsibility) when it comes to mitigating climate change, individuals can also help contribute to a healthier planet.

Personal, everyday choices and actions have a ripple effect on the environment. Even small decisions can make a big difference in protecting valuable ecosystems and fighting climate change.

The world’s forests can only thrive through collective effort. Here are three key sustainability actions individuals can take to bring about positive change:  

• Support businesses with sustainable practices: Buying from companies that are committed to ethical environmental practices helps them rise above less-sustainable competitors. Some companies participate in greenwashing, which can include deceptive tactics that give the illusion of sustainability without any real action. To avoid these bad actors, look for brands with credible certifications, like the FSC label. Certifications like this help consumers recognize when a company takes significant steps toward sustainability by following strict environmental standards.  
• Reduce waste by limiting individual consumption: Buying less, especially unnecessary items, reduces the demand for resource extraction and manufacturing. Instead, consumers can choose to reuse with re-fillable water bottles, recycled or re-usable shopping bags, and coffee mugs over disposable cups. Choices like this help cut down on single-use plastics and the energy it takes to produce them. 
• Spread awareness and advocate for change: Talking with friends, family, colleagues, and neighbours about why sustainability matters can encourage community-wide action. Individuals can take this concept a step further by getting involved in local initiatives and contacting their government representatives, urging them to support policies that promote sustainability and systemic change.

Individuals who want to take their sustainability journey even further can partner with FSC during their annual Forest Week campaign. This global initiative aims to help support community engagement by encouraging both individuals and corporations to increase their commitment to sustainability.  

Benefits of individual sustainability efforts

Everyday sustainable practices offer both global and personal benefits. Explore how individuals who adopt sustainable habits could experience enhanced physical, mental, and financial well-being while contributing to a healthier planet. 

1. Improve aspects of health 

Decreasing our individual reliance on fossil fuels and preserving healthy forests, which absorb carbon dioxide, can dramatically improve air quality to enhance individual and collective well-being.

According to the World Health Organization (WHO), air pollution is a major environmental health risk that can cause respiratory illness and other diseases. They found that 99 per cent of the global population breathes polluted air exceeding WHO limits, with the most severe impacts on low and middle-income countries.

In addition to supporting improved air quality and respiratory health, even small sustainable practices, like biking or walking rather than driving, naturally encourage physical activity throughout the day. This can contribute to improved health overtime.

Reducing meat consumption also offers significant benefits for both personal health and planetary well-being. The United Nations identifies animal agriculture as a major contributor to greenhouse gas emissions. Adopting a more plant-based diet is generally associated with lower environmental impacts and can help improve personal health outcomes.

Actions for individuals: Choose more sustainable transportation options (like walking, cycling, carpooling, or public transportation) and consider eating less meat or animal products to help lower emissions.  

2. Support mental health  

In addition to its physical health benefits, individual sustainability initiatives can also impact a person’s mental health. That’s because spending time in nature has been shown to reduce stress and anxiety, improve mood, and boost cognitive function.  

A report published by the Mental Health Foundation found that exposure to nature can enhance overall well-being by increasing energy levels, boosting positive emotions, and improving attention spans – all while reducing mental fatigue.

Moreover, contributing to a sustainable future can help cultivate a sense of purpose accomplishment, and connection with local communities and the natural world.

Actions for individuals: Take regular mindful walks in nature, try growing food with personal gardening, and explore volunteer opportunities for environmental causes. 

3. Help save money on utility bills

Fossil fuels remain the primary global energy source. Burning these fuels releases carbon dioxide – a major contributor to climate change. To combat this, the United Nations promotes energy-efficient homes, such as those using LED lights and energy-efficient appliances. The goal is to reduce the global average individual carbon footprint, currently at 4.8 tons per person annually according to Conservation International.

Not only is this a win for the planet – it can also significantly decrease electricity bills. Additionally, reducing water waste through measures like repairing leaky faucets and shortening showers can help lower water bills.

Actions for individuals: Conserve energy by turning off lights in empty rooms, unplugging unused electronics, and washing clothes on the cold setting rather than with hot or warm water.  

Additional resources 

Dive deeper into sustainability strategies with insights from the World Business Council for Sustainable Development (WBCSD). Access their reports and case studies on sustainable business practices worldwide.

Explore sustainable business principles and implementation guidance from the United Nations Global Compact (UNGC). Finally, explore Eurochambres' resources on sustainable business practices in Europe, including policy briefs and case studies.  

Sourcing 

1. PwC (2023) June 2023 Global Consumer Insights Pulse Survey. https://www.pwc.com/gx/en/industries/consumer-markets/consumer-insights-survey.html (accessed 9 April 2024)   
2. IBM (2021) Sustainability at a turning point. https://www.ibm.com/downloads/cas/WLJ7LVP4 (accessed 9 April 2024)  
3. World Health Organization (n.d.) Air Pollution. https://www.who.int/health-topics/air-pollution (accessed 6 August 2024) 
4. Mental Health Foundation (2021) Mental Health and Nature: How Connecting With Nature Benefits Our Mental Health. https://www.mentalhealth.org.uk/sites/default/files/2022-06/MHAW21-Nature-research-report.pdf (accessed 6 August 2024) 
5. Conservation International (2024) What is a Carbon Footprint? https://www.conservation.org/stories/what-is-a-carbon-footprint (accessed 8 August 2024)   
6. United Nations (n.d.) Your Guide to Climate Action: Home Energy https://www.un.org/en/actnow/home-energy (accessed 8 August 2024) 
7. United Nations (n.d.) Food and Climate Change: Healthy Diets for a Healthier Planet https://www.un.org/en/climatechange/science/climate-issues/food (accessed 8 August 2024)