What is Sustainable Development
and how to apply to your company?
Everybody knows… or at least everybody should know… that ESG is a growing topic in the business industry as a whole. Everybody seems to want to surf the sustainability wave and promote sustainable development within their company even if they are not quite sure what it is or how to do it… If you are one of these people you’ve come to the right place, in this article I’ll explain what Sustainable Development actually is and how to achieve it! So make sure to read until the end, and enjoy the ride!
What is Sustainable Development?
Sustainable Development is nothing more than aligning a company’s financial growth with its Corporate Responsibility, in relation to the environment, society in which it operates, employees, and other stakeholders. The goal is to preserve our natural resources for future generations while providing a quality of life for employees and other members of society while the business evolves.
Sustainable Development is a way of ensuring that economic growth is not achieved at the expense of social well-being and environmental degradation (two issues that are intrinsically linked to each other), after all, without a healthy planet to live we have nothing, so what’s the point?
The right way for a company to develop is by promoting social equity, seeking the inclusion of all individuals, and respecting human rights, as well as, preventing environmental extermination by adopting sustainable practices that guarantee the conservation of natural resources, the mitigation of climate change, and the protection of biodiversity.
What is the connection between sustainability and sustainable development?
So basically, sustainability is the theory and sustainable development is the practice.
Sustainability is the balance between meeting consumption and production needs, without compromising future resources or negatively impacting people, the economy, and the environment. It is all about making use of innovative solutions that generate financial returns in the medium and long term without jeopardizing anybody or anything.
Sustainable development only occurs when these three pillars evolve in the same proportions:
Social Pillar:
Propels human well-being, equity, social justice, and improved lives. It constitutes initiatives focused on human rights, the eradication of poverty, access to education, health, security, and democratic participation. It also includes promoting gender equality, and inclusion, empowering communities, ensuring decent living conditions, among other things
Environmental Pillar:
Promotes the preservation and defense of the environment, biodiversity, natural resources, and ecosystems. It encompasses the adoption of sustainable practices to reduce the negative impacts of human activities, such as the conscious use of finite resources, the mitigation of pollutant emissions such as GHGs, the protection of fauna and flora, adequate waste management, and the use of renewable energy.
Economic Pillar:
Represents the aspect of development that seeks to harmonize economic growth with the preservation of natural resources and social justice. It seeks to strengthen an inclusive and sustainable economy, creating jobs, promoting innovation, boosting energy efficiency, and encouraging responsible production and consumption.
Sustainable Development demands the adoption of sustainable practices. If a company, for example, deforests an area without worrying about its regeneration, it will eventually lose its productivity due to the scarcity of resources. Likewise, social inequality prevents access to consumption for certain groups, which also impacts business.
We are beginning to understand that it’s no use focusing on profit at all costs. The three pillars are interdependent. The adoption of clean and efficient technologies, the conscious use of natural resources, and the search for equity are fundamental principles for genuine development.
Importance of Sustainable Development
Sustainability is no longer seen as just an addition to the company’s strategy but as a necessity. It was comprehended that there will not be a healthy future if we do not regenerate the environment and care for the people who live in it.
The contribution of the secondary sector is extremely important as it plays a central role in the global economy and has a significant impact on society and the environment!
The benefits for companies of adopting such practices include:
Reduced operational costs;
Better reputation in the eyes of customers and investors;
The attraction of talent engaged with the cause;
Competitive advantages for organizations;
Among many others!
By investing in research and development of eco-efficient solutions, organizations are able to contribute to solving environmental challenges and meeting society’s needs.
Investors around the world are paying attention to the Sustainable Development Goals (SDGs) that must be achieved by 2030. Therefore, they have given preference to companies that are inserting sustainability into their DNA and are committed to solving these challenges.
The UN Sustainable Development Goals (SDGs) are a global initiative that aims to mitigate the most urgent challenges humanity is facing by the year 2030. They are made of 17 goals that are interconnected, addressing social, economic, and environmental issues, recognizing that these aspects are inseparable and must be addressed in an integrated manner.
They end up serving as a path for governments, companies, civil society organizations, and individuals to work together to build a more sustainable and inclusive future.
But now that we have understood what is Sustainable Development and its importance, how do we actually apply it in practice?
7 fundamental strategies to boost sustainable development:
1. Cultivate an organizational culture focused on sustainability:
Understand the essential role that sustainability plays in the corporate world, incorporating it into the organizational strategy and encouraging the engagement of all employees. As there is no sustainable development without the engagement of everybody involved from top to bottom.
2. Prioritize employee well-being:
Implement corporate social responsibility, diversity, and inclusion programs, ensuring equal opportunities and inclusion of different groups in society. Recognize that human capital is the company’s most valuable resource, without specialized and engaged employees, there is no development. Without recognition and fair salaries collaborators leave don’t feel acknowledged and they leave, resulting in a loss of talent, and compromising the development of the company. Investing in safe and welcoming environments, and valuing employees’ work results in increased productivity and motivation, which generates talent retention and results in more significant business achievements.
3. Increase social impact in your area of operation:
Invest in actions to support local communities, groups in a state of vulnerability, educational projects, health, and well-being, among others. Understand how your company directly impacts society, and what can be done to meet the needs and struggles the community faces and promote a positive impact.
4. Reduce waste:
Probably the cause that speaks closest to my heart…
It is essential to incorporate into the company’s day-to-day activities waste management practices such as the abolition of disposables, procedures for separating recyclable and organic waste, and their correct destination (for cooperatives and composting), as well as making use of reusing materials and working with reverse logistics, reducing the amount of waste sent to landfills and contributing to a circular economy and healthy planet!
It is also important to opt for projects and products that minimize or eliminate the generation of waste, which aims to repair materials and reuse others, in order to avoid the unrestrained disposal of waste.
5. Prioritize sustainable suppliers and develop sustainable products:
To promote a web of sustainability, it is crucial to establish partnerships with suppliers and other stakeholders who share the same sustainable values and practices.
It is also important, to strengthen the brand’s image, to communicate in a transparent way, the practices adopted and details of the entire production chain, from resource extraction, to manufacturing, sale, use, and disposal of the product.
Here we reflect on the materials used in the products sold, and their means of production. It is essential to create products with designs that generate the lowest environmental impact at all stages of their life cycle, considering sustainable materials and more efficient processes, which contribute to circularity, as opposed to creating products with high negative impacts, and inventing means of minimizing damage at the disposal stage.
6. Choose low-energy consumption equipment:
In addition to investing in clean energy such as solar or wind (which should be an obvious switch by now), that reduces dependence on fossil fuels and contributes to reducing greenhouse gas emissions, it is also interesting to think about natural lighting and ventilation, which reduces the dependence on electricity and operational costs also provide comfort and well-being to individuals.
Furthermore, it is equally important to think about energy efficiency, to reduce energy consumption, that is, adopt the use of more efficient equipment, LED lighting systems, and intelligent management of these resources.
7. Always try to evolve, stay up to date and be innovative:
Finally, it is essential to stay up to date with market innovations and trends, as simple solutions can have major impacts on the company.
Sustainable Development is directly related to innovation, pushing the development of technologies, sustainable products, and the generation of creative solutions that stand out.
Constant learning and the ability to adapt to changes are vital to promote sustainable development in an effective and continuous manner.
It is safe to say that by now you can leave here with much more clarity on what is sustainable development; and the importance of applying the principles everywhere, as we’ve learned: there is no profit or future if there is no habitable planet to live; and a few clues on how to start!
Sustainability is a journey, what’s important is that everybody does their part, so we can have collective growth. So welcome aboard, and it is great to have you here!