Sustainability without profit is unsustainable

Sustainability without profit is unsustainable

As we strive for a more environmentally friendly and socially responsible way of operating our organizations, sustainability is a perennial hot topic. Typically, it is used as an umbrella term encompassing the principles of Environment, Social, and Governance (ESG), with many companies now publicly highlighting their sustainability initiatives as they recognize their responsibility to make a positive impact on the world and society. ?

To achieve the goals of their sustainability initiatives, however, businesses must generate profit. After all, without a company’s financial success, sustainability efforts may become unsustainable themselves. This means that sustainability and growth are not enemies, but rather interconnected concepts that rely on one another.?

Taking small steps toward sustainability ?

When we look at sustainability efforts, it is important to consider them in the context of a company's size and opportunities. Every company, regardless of its scale, can find ways to reduce its carbon footprint, taking steps as small implementing energy-saving measures in the office or reducing waste. These minor changes can have a significant impact when implemented across a large number of companies.?

Too often, I see a company’s well-intentioned efforts at sustainability leading to a loss of focus on the core business. If sustainability is your only goal, it may be more appropriate to consider starting a non-profit organization, partnering with NGOs, or collaborating with the government. For businesses, sustainability efforts should align with a responsible approach toward employees, suppliers, partners, investors, and shareholders. Balancing the needs of all stakeholders ensures a comprehensive approach to both sustainability and your business, helping you maintain a functioning and profitable structure that allows you to make a genuine impact.?

Sustainability as a business case?

While you may need to consider the scale of your sustainability initiatives, this doesn’t mean that growth and sustainability are trade-offs; both are necessary for meaningful change. With growth, companies can invest in sustainable practices that lead to a lower carbon footprint. These investments often accelerate the reduction of environmental impact faster than growth itself affects carbon emissions.?

This is why investments in sustainability should not be viewed solely as costs, but rather as strategic business cases. Companies should measure the benefits and returns on these investments as they would any other financial decision. Research has shown, for example, that companies with strong ESG agendas and a track record of sustainability can earn increased multiples in exit processes. Consumers also reward companies with genuine sustainability agendas. “Greenwashing" or superficial sustainability claims, on the other hand, are easily spotted – and can quickly lead to a loss of trust. ?

That is what we must remember when developing our own sustainability initiatives: meaning and authenticity is everything. It’s also another profound reason as to why growth and sustainability go hand in hand, with growth providing the resources and opportunities for strategic and meaningful sustainability initiatives. In doing so, companies can thrive financially while making a positive impact on the world. Talk about a win-win situation.

In origine, the goal of economy was to fulfill the needs of humans. Today the goal of the economy is growth, it's not anymore at service of society. Often even in the contrary... Is infinite growth possible on a finite planet? We need everything to overcome this poly-crisis we are in. We'll need technology, regulation, change in mindset & habits and especially more care for humans and planet. So let's start! :)

Frank Chmitelin

Chief Strategy & Sustainability Officer at ADISSEO

1 年

Sustainability without profit is unsustainable for the company. Profit without sustainability is unsustainable for life on earth. Which one of these 2 situations is the most frequent in today’s world ? which one is the biggest risk ? I do believe the only way to get out of this lose lose dilemma is to change the regulatory framework in order to enable profit making from sustainable solutions and penalize non sustainable ones !

Nicolai Broby Eckert

Helping companies accelerate growth | Executive Advisor | Author The Demand Revolution | Keynote speaker | Investor & Board Member

1 年

Great article Erik

要查看或添加评论,请登录

Erik Visser的更多文章

社区洞察

其他会员也浏览了