Driven by a strong regulatory push, evidence of risk mitigation, and market peer pressure, companies are looking beyond shareholder value and ensuring that their business also creates value for their social and environmental key stakeholders. For businesses globally, across all industries, sustainability has evolved in to becoming an integral part of corporate strategy. Companies that scored the strongest on ESG metrics saw some of the highest returns in 2021 in the United States, a trend being seen in many other regions as well.
The five factors driving this shift are:
- Investor pressure – Globally, 85% of investors considered ESG factors in their investments in 2020, while 91% of banks monitor the ESG performance of their investments.
- Regulatory requirements – Sustainability related regulations, both voluntary and compulsory, is set to become more stringent, with key markets such as the European Union and US having set new requirements for businesses to report on and prevent adverse impacts on climate, the environment and human rights.
- Peer pressure – To be competitive in the market, there is healthy competition amongst companies to strive to set their sustainability targets and meet their sustainability goals.
- Talent acquisition – With a younger workforce becoming part of the global economy, being sustainable is important when it comes to attracting potential employees. Globally, 49% of Gen-Zs and 44% of millennials say they would make career choices based on values and ethics.
- Increased productivity – Sustainable businesses reduces risks and costs, thus positively affecting operating profits by up to 60%.
The signs are clear – sustainability creates business value for long term prosperity. The dependencies between our environmental, social and economic systems when supported and leveraged, create resilient businesses. Get Involved
Our sustainability expo bring future-thinking, cross-industry leaders that prioritises the three pillars and their impact. Sustainability events are at the forefront to of change, but what does this term actually mean?
What is Sustainability?
Sustainability is meeting the current generation's needs (e.g., social, economic, etc.) without compromising future generations and their needs.
Where “Sustainability” Is From
The term “sustainability” can be traced back to the Brundtland Report or Our Common Future which was published in 1987 by the United Nations. The Brundtland Report outlined the potential negative consequences that globalization and economic development had on our environment as well as solutions to these challenges.
The Pillars of Sustainability
Also known as profits, planet, and people, sustainability is characterised by the following pillars:
Economic sustainability describes the occurrence in which communities across the globe are independent and have access to economic systems and other resources in order to meet their needs.
In order to achieve environmental sustainability, the planet’s systems are in balance which means that they are able to provide for humanity’s needs while being able to replenish and attend to their own needs.
A sustainable society is one where basic necessities and human rights are attainable and achieved. Social sustainability can be described by respected communities with access to health and security.