Companies that are sustainable and environmentally friendly will have an advantage in attracting investors and customers.
The UN World Commission on Environment and Development defines sustainability as “meeting the requirements of the present, without hindering the capacity of future generations to satisfy their requirements.” Furthermore, the term “environmental sustainability” refers to taking action to ensure our children’s future have the resources to enjoy the same, if not better, lifestyle as the current generation.
It is essential to be aware that while populations have grown and economic activities have grown rapidly and the resources, i.e., the Earth’s natural resources like petroleum, minerals, coal, gas, and others, remain largely in the supply.
The Stockholm Declaration can be considered the first initiative globally taken by the United Nations to safeguard future generations from harming the utilization of natural resources by the present generation. As a signatory of the Stockholm Declaration, India has implemented numerous regulations and rules as a result of various statutes and laws. The creation of the NITI Aayog may be seen as the most significant step in achieving the various SDGs established by the UN.
There are a few ways Environmental Sustainability will impact businesses in the long run include:
Environmentally sustainable businesses will enjoy an edge in attracting investors and customers, according to a study by Capgemini’s more often with retailers and brands that they consider environmentally responsible and committed to sustainable practices. The study found that 48% of customers feel a strong emotional connection to brands or companies that display sustainable qualities.
Supply chains are now global and subject to a wider array of risks. Water scarcity, climate change, and poor working conditions across the globe make it more difficult to manage risks.
Environmental risks are evident in the long run and can impact the company in various ways that are mostly out of the company’s control.
Numerous companies have taken initiatives to enhance sustainability in the environment. In this case, P&G has introduced Fairy Ocean Plastic bottles composed of 10 percent ocean plastics and 90% recycled post-consumer plastic. The bottles are 100% recyclable. Were created to showcase how you can stop plastic waste from entering the ocean.
A company can distinguish its products and services by various factors, including cost, quality, and customer service. A growing trend is that businesses attempt to differentiate between sustainable environmental practices.
There is still a false belief that one can make sustainable profits or profits and sustainability, but neither. In addition to the financial benefits that accrue from increased competitive advantage and innovation, as discussed earlier, companies realize significant cost savings through environmental sustainability-related operational efficiencies.
AVAILABILITY OF CAPITAL
As per S&P Global Ratings, global sustainable bond issuance are likely to surpass $1.5 trillion in 2022, even as global bond issuance stagnates overall, which will be driven partly by the booming sustainability-linked and green bond markets as public and private sector issuers tackle their climate commitments and utilize the same for both, adaption and mitigation purposes.
To end, Mahatma Gandhi’s famous quotation, “The earth provides enough to meet the needs of every person, but not everyone’s need for greed,” is something that needs to be thought about. We believe that digitization is the key in integrating assets and actions to ensure that decarbonization is successful. Technology is helping to combat climate change and, in general, aspects of sustainability for the environment, including identifying issues to identifying solutions and the integration of systems. Furthermore, cooperation among various parties, including government, corporations, and non-profit organizations, is essential to ensure that we’re in the right direction towards sustainability.