The importance of sustainability for businesses

While no one can predict specific future events or disruptions, we can contemplate trends that shape the future. One of those trends is called sustainability.

‎Sustainability is a business approach that involves considering how organizations function in the ecological, social, and economic environments to create long-term corporate value.

‎Sustainability (and ESG, which stands for Environmental, Social, and Governance) is built on the premise that such business strategies are designed to promote the long-term viability of companies.‎

‎Non-financial risks such as climate change, anti-corruption efforts, health and safety, human rights, resource utilization, diversity, land degradation, and more are all part of sustainability and ESG (Environmental, Social, and Governance).

‎Organizations need to carefully monitor how they manage these non-financial risks in their business and how their business contributes to people and the planet.‎

‎Responsible investors support sustainable companies. Talented individuals are eager to work for such companies. Ethical, values-driven consumers want to purchase the brand and products of such a company.‎


‎‎‎‎‎”The reasons why sustainability is important for businesses are as follows: There are three of them.”‎

‎-Investments in sustainable companies have grown by 107.4% since 2012.

-One-fifth of the world’s 2,000 largest corporations are aiming for carbon neutrality by 2050.

‎-Online searches for sustainable products have increased by 71% in the past five years.

-Ninety percent of consumers consider sustainability when purchasing products or services.


The trend towards sustainability is almost certain to shift the dominant system of corporate governance, shareholder capitalism, which has prevailed for the past 50 years, towards stakeholder capitalism.‎