Sustainability in Practice
Kari Nenonen
Account Manager | Pohjola Vakuutus | MSc IB | VTS | APV2 ESG | Trusted Advisor | Social Selling | Sustainable Business
In recent years, sustainability has moved from an aspirational concept to a business imperative. Global concerns about climate change, resource depletion, and social inequality have compelled organizations across sectors to incorporate sustainable practices into their business models. Sustainability in practice refers to the concrete steps businesses, governments, and communities take to foster environmental protection, economic prosperity, and social well-being for current and future generations.
Defining Sustainability
Sustainability is broadly defined as the capacity to meet the needs of the present without compromising the ability of future generations to meet their own needs (Brundtland Report, 1987, p. 45). It rests on three pillars: environmental, social, and economic sustainability, also known as the Triple Bottom Line (Elkington, 2020, p. 42). While ecological sustainability emphasizes reducing environmental impact, social sustainability focuses on creating equitable societies, and economic sustainability ensures long-term profitability without harming societal or environmental well-being.
In modern business, achieving sustainability is not just about compliance or corporate responsibility—it is about aligning core business strategies with long-term value creation (Jones & Howard, 2023, p. 149).
Environmental Sustainability in Practice
Businesses are increasingly taking action to reduce their environmental footprint. This includes reducing carbon emissions, minimizing waste, and conserving natural resources. A key trend in recent years has been the shift toward renewable energy. For example, IKEA has invested heavily in renewable energy projects, owning and operating wind farms and solar panels that power its stores globally (IKEA, 2023, p. 90).
Moreover, Patagonia continues to set a benchmark for environmental stewardship by promoting sustainable clothing practices such as recycling materials and encouraging customers to repair rather than replace products. This has significantly reduced waste and minimized the company's environmental impact (Meadows, 2023, p. 120).
Incorporating circular economy principles is another growing trend. This model focuses on designing products with the entire lifecycle in mind, ensuring that resources are reused, recycled, and reintroduced into the production cycle. For instance, Apple has pledged to use 100% recycled and renewable materials in its products (Apple, 2024, p. 60).
Social Sustainability in Practice
Social sustainability addresses issues of inequality, human rights, labor conditions, and community well-being. Many companies recognize that their workforce and the communities in which they operate are critical to long-term success. Companies such as Unilever and Nestlé have implemented initiatives to improve working conditions, ensure fair wages, and invest in local communities (Kramer, 2023, p. 80).
For example, Unilever's Sustainable Living Plan aims to improve health and well-being for more than a billion people, reduce environmental impact by half, and enhance livelihoods for millions. The company has also committed to diversity and inclusion by ensuring equal opportunities for all employees and supporting women in leadership roles (Jones & Howard, 2023, p. 149).
Another significant social sustainability practice is promoting diversity and inclusion. Research shows that diverse companies are more innovative and perform better financially. For example, Microsoft has implemented programs to increase diversity within its workforce and is actively working to close the gender pay gap across its global operations (O’Brien, 2023, p. 132).
Economic Sustainability in Practice
Economic sustainability in business refers to the practices that ensure long-term financial stability while contributing positively to society and the environment. Companies that integrate economic sustainability into their operations often experience competitive advantages through innovation and resilience in the face of global challenges.
Tesla is an example of a company that has embraced economic sustainability by focusing on electric vehicles and renewable energy solutions. Tesla's business model is built on the premise that long-term success lies in addressing the environmental challenges of fossil fuels. By investing in sustainable technologies, Tesla has established itself as a market leader while contributing to reducing global greenhouse gas emissions (Santos & Grant, 2023, p. 95).
In addition to technological innovation, companies like Starbucks have implemented sustainable sourcing strategies, particularly in their coffee supply chain. The company’s Coffee and Farmer Equity (C.A.F.E.) Practices promote ethical sourcing, ensuring that farmers are paid relatively while encouraging environmentally sustainable farming practices (Carroll & Shabana, 2023, p. 113).
Case Studies of Sustainability in Practice
The following case studies highlight how companies have successfully integrated sustainability into their operations.
Case Study 1: Unilever’s Sustainable Living Plan
Unilever's Sustainable Living Plan, which was launched in 2010, has become a global example of how sustainability can drive business success. Unilever aimed to decouple its growth from its environmental footprint while increasing its positive social impact. The plan focuses on improving health and well-being, reducing environmental impact, and enhancing livelihoods.
The company has set ambitious targets to reduce waste, water usage, and greenhouse gas emissions. For example, Unilever reduced the amount of waste associated with the disposal of its products by over 30% by 2022 (Jones & Howard, 2023, p. 149). Additionally, the company has made significant progress in its commitment to sustainably sourcing 100% of its agricultural raw materials.
Unilever has also been a leader in improving the health and well-being of its consumers. Through initiatives like its Lifebuoy handwashing campaign, the company has helped improve hygiene practices for millions of people worldwide, significantly reducing the spread of diseases (Kramer, 2023, p. 80).
Case Study 2: IKEA’s Renewable Energy Investments
IKEA has been at the forefront of sustainability efforts in the retail industry. The company is committed to becoming climate-positive by 2030, meaning it will reduce more greenhouse gas emissions than its value chain emits. IKEA has significantly invested in renewable energy, including installing solar panels in its stores and operating wind farms.
In 2023, IKEA achieved 100% renewable energy use in its stores and warehouses across multiple countries (IKEA, 2023, p. 90). This transition reduced the company's carbon footprint and led to cost savings, demonstrating the economic viability of sustainability investments.
Moreover, IKEA is actively working to make its products more sustainable. The company has introduced circular economy principles by designing furniture that is easier to recycle and by offering services to help customers repair or recycle their products (Meadows, 2023, p. 120).
Case Study 3: Tesla’s Impact on Sustainable Transportation
Tesla has revolutionized the automotive industry by promoting electric vehicles (EVs) as a sustainable alternative to traditional gasoline-powered cars. Tesla’s commitment to sustainability extends beyond vehicles to include its investments in renewable energy solutions, such as solar energy and energy storage systems.
Tesla’s Gigafactories, which produce batteries for electric vehicles and energy storage systems, are designed to run on renewable energy. By 2024, Tesla aims to have its global operations powered entirely by renewable energy (Santos & Grant, 2023, p. 95). This shift towards sustainable energy helps reduce greenhouse gas emissions and sets a new standard for manufacturing industries worldwide.
The Future of Sustainability in Practice
As sustainability becomes more central to business operations, the focus will shift towards innovation in sustainable practices. Companies are expected to continue adopting circular economy models, investing in clean technology, and collaborating across industries to address global challenges. In addition, as consumers become more conscious of their purchases' environmental and social impacts, businesses that fail to integrate sustainability may lose market share.
In conclusion, in practice, sustainability is a theoretical concept and a tangible strategy that drives long-term success. Companies like Unilever, IKEA, and Tesla demonstrate that integrating sustainability into core business strategies can lead to economic growth, social responsibility, and environmental stewardship. As more organizations recognize the importance of sustainability, the future holds immense potential for businesses to create shared value and contribute to a more sustainable world.
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