How environmental sustainability will impact businesses in long run
India Today
Environmentally sustainable businesses will have a competitive edge when it comes to attracting clients and investors.
The UN World Commission on Environment and Development defines sustainability as “meeting the needs of the present without compromising the ability of future generations to meet their own needs.” Further, environmental sustainability is about acting in a way that ensures future generations have the natural resources available to live an equal, if not better, way of life as current generations.
It is important to acknowledge the fact that as populations have increased and economic activities have expanded at a rapid pace, the inputs i.e. Earth's natural resources—such as minerals, petroleum, coal, gas, and others, remain static in supply.
The Stockholm Declaration can be considered the first global initiative by the United Nations to safe guard future generations by compromising the use of natural resources by the current generation. India, being a part of this declaration, has implemented many rules and regulations in the form of various acts and statutes and Formulation of NITI Aayog can be considered as a most prominent step towards achieving various SDG's set up the UN.
A few ways in which Environmental Sustainability will impact businesses in long run would include:
Environmentally sustainable businesses will have a competitive edge when it comes to attracting clients and investors. According to a recent report by Capgemini’s, consumers engage more readily with brands and retailers that they perceive to be sustainable and genuinely committed to green practices. The report found that 48% of consumers share an emotional connection with products or organizations that demonstrate eco-friendly qualities.
Supply chains have gone global, and are exposed to wider range of risks. Climate change, water scarcity, and poor labour conditions in much of the world increase the risk.
Environmental risks are apparent over a longer term and often affect the business on many dimensions which are largely outside the organization’s control.
