What is Sustainability?

Sustainability in a business context is about considering people, planet, and long-term prosperity when determining strategy, operational activity, and culture, ensuring that everybody involved in the organisation acts in a way that adds positive value and impact to the Triple Bottom Line. It's a holistic concept embedded within the brand DNA of responsible organisations.

The Corporate Governance Institute defines sustainability as "encompassing the long-term viability of a company’s activities and operations, taking into account its environmental, social, and economic impacts, recognising that sustainable organisations not only thrive economically but also contribute positively to society and the environment." 

The Institute of Directors describes sustainability as "encompassing a range of responsible business practices used to operate a business without harming and preferably improving, the environment, society or the economy. It goes beyond financial considerations and is a holistic concept that incorporates environmental stewardship, social responsibility, and economic viability."

The United Nations describes it as "meeting the needs of the present without compromising the ability of future generations to meet their own needs." 

The global health pandemic and increased awareness of climate change contributed towards boosting the social consciousness of business leaders, who placed social inclusion and environmental protection high on boardroom agendas.  

By 2021, awareness of ESG (Environmental, Social, and Governance) as a risk management concept peaked in the UK. Carbon reporting became a recognised business practice and ESG Rating agencies emerged as companies shopped around to secure the more favourable scores for publication in their annual reports.  

In 2024, we are seeing a paradigm shift, with organisations starting to transition away from focusing purely on ESG reporting and disclosures, towards more broader sustainability leadership, placing emphasis on disclosure, action, value, AND impact across all four types of capital: financial, human, social, and natural. 

ESG and sustainability are not the same, however, the two terms are often conflated.