Corporations Are Realizing Long-term Profit is Directly Linked to Sustainability

Corporate sustainability efforts are becoming more strategic as businesses realize that being a force for good in society is linked to ensuring long-term profitability.

Some companies are integrating social and environmental priorities into their organizations, no longer making a distinction between sustainability and their core business goals.

Today’s businesses are under the spotlight like never before. They are expected to play a leading role in fighting climate change, achieving globally agreed sustainable development goals, and ensuring that 9 billion people can live well on the planet by 2050. Progressive businesses are widening their focus beyond profit to consider how they can create value in society and thrive in the future.  

Why is sustainability important?

The National Environmental Policy Act of 1969 committed the United States to sustainability, declaring it a national policy “to create and maintain conditions under which humans and nature can exist in productive harmony, that permit fulfilling the social, economic and other requirements of present and future generations.”  

Gail Klintworth, formerly of the Business and Sustainable Development Commission, recently said:

“There’s a significant difference between outfitting your company with solar panels to reduce your carbon footprint and proactively seeing business opportunities in a low-carbon world. In order to create the sea of change we need, CEOs, as well as boards, will need to transform their business models so that sustainability becomes the norm across everything they do.”

Next Steps

1. Recognize the need to further deepen the commitment to social and environmental responsibility
2. Become less reactive and more proactive in the approach to social and environmental issues
3. Push for greater transparency

In the future, more companies are likely to adopt and implement a purpose over profit strategy. According to Reporting 3.0 Board Member Brendan LeBlanc:

“To truly be sustainable, companies should consciously, and ethically, balance their financial, social and environmental resources and impacts against their desire to operate indefinitely.”

No one should expect an overnight sensation; such a transition will take time to implement, but putting purpose squarely in the center of everything we do results in better economic opportunities for everyone.

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