So what is sustainable development?
Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.”
In other words, sustainable development focuses on improving the quality of life for all of the Earth’s citizens without increasing the use of natural resources beyond the capacity of the environment to supply them indefinitely. It requires an understanding that inaction has consequences, and that we must find innovative ways to change institutional structures and influence individual behavior. It is about taking action, and changing policy and practice at all levels, from the individual, business, social, governmental and to the international.
Why implement Sustainable Development?
To start, it is good business. Based on Dexia Asset Management, one the world’s leading investment firms in sustainable development, the yields of companies that scored high on the social responsibility index performed equivalent or superior to traditional management companies; the Dexia AM Global Sustainable Management fund companies’ yields out performed MSCI World index companies by more than 20%.
Implementing sustainable development into your business is the socially right thing to do. It will present opportunities for cost reductions & optimization and advantages
in the eyes of your customers which can distinguish you from your competitors.
How does this apply to you?
Your organization can seek ways to make good business decisions that are profitable while contributing to the well-being of the planet, its people and your customers. John Elkington coined the phrase the “triple bottom line (people, planet & profit - P3)” in his book Cannibals With Forks: The Triple Bottom Line of 21st Century Business. In its broadest sense, the triple bottom line captures the spectrum of economic, environmental and social values that you need in order to promote sustainability.
An example that touches all areas might be an energy project to replace the central heating systems for a particular property. Doing so would have the following impacts:
Project Outcomes and Sustainable Components |
| Project Outcomes | P3 - 5 Capitals |
| Lower Operating Costs | Profit – Financial |
| Less of the Natural Capital (Gas) – Less Pollution from Reduced Operation | Planet – Natural |
| More Reliable Heating for Resident | People – Human |
| The Buildings are Green (Certified) | Planet – Natural |
| Resident Chooses Green (Certified) | People – Human |
| Supported by Local Government | People – Social |
| Employee Respect for the Actions | People – Human and Social |
| Bank Interested Rates Lowered (Green Certified) | Profit – Financial |
How is a Sustainable Development Program executed?
All organizations can do something and it can also be beneficial to the financial bottom line while improving the other areas of the “triple bottom line”. It is recommended that a Sustainable Development Program start where it has current business benefits; thus allowing growth into the less tangible and measurable areas. Start where it has positive impacts to your financial bottom line.
Understand how your business influences the five capitals and what areas have the greatest initial opportunities and impacts. Once you have a general understanding of your ecological footprint, where areas of opportunity exist, their impacts, and which can improve your business, develop an action plan and begin the implementation and integration. For example, a business that operates or occupies significant physical assets may start with improving its consumption of utilities or its procurement practices; as described above it has an impact on all five capitals.
Make a difference – Start today!