There is a lot of talk about sustainability and changing how we operate businesses in recent times. Studies show that if we don’t change anything in the way humanity functions and consumer trends continue, the Earth will be out of resources in approximately 27 years. Research published in “Decade of Disruption: Future of the Sustainable Workplace in the Age of Covid-19 and Climate Change” shows that 72% of multigenerational respondents stated that they were concerned about environmental ethics and almost two-thirds (65%) of respondents said that they were more likely to work for a company with strong environmental policies. Climate change and social equity are increasing in importance for younger employees.
While sustainability is generally marketed towards manufacturing processes and systems, true sustainability isn’t just for large corporations. In fact, businesses of any size can work toward a sustainable business model by following specific practices and adopting a sustainable strategy. By incorporating sustainability at the core of the business model, you can make a profit and be socially responsible.
How?
A business model that prioritizes sustainability is one that, at a minimum, considers all stakeholders, assesses and addresses environmental impacts, and is transparent and thorough in its reporting. A sustainable business model is a company’s plan for making a profit sustainably, i.e. protecting people and the environment. It identifies the products or services the business sells, its target customers and the associated costs, supply and distribution chain. These businesses monitor the impact of their operations to ensure that their short-term decision-making also benefits long-term goals for resilience and sustainability.
The four keys:
A sustainable business model is commercially profitable.
A sustainable business model can succeed far into the future.
A sustainable business model uses resources it can utilize for the long term.
A sustainable business model gives back.