Why Is Sustainability Important in Business?

The “Great Pacific Garbage Patch” is illustrative of why it’s extremely important for businesses to prioritize sustainability. According to the scientific journal Environmental Sustainability, an island of plastic twice the size of Texas (approximately 1.6 million square kilometers) is floating in the Pacific Ocean. This plastic harms marine life, and microplastics in seafood can end up in humans. This plastic would not exist if it weren’t for companies that use it to create and package products.

Simply put, if businesses don’t act responsibly as members of the global community, the majority of many species will not survive past the 21st century. Environmental Sustainability notes that “the human-caused rate of extinction of species of both plants and animals at present is hundreds of times higher than the natural rate in the past.”

According to Environmental Sustainability, we’re on pace to produce 27 billion tons of solid waste by 2050 due to a business environment that prioritizes rapid production and turnover of products for maximum profits. Unchecked CO2 emissions are projected to contribute to a temperature increase of two degrees Celsius by 2050, which will cause sea levels to rise and catastrophic weather events to increase.

A study found that just 100 companies are responsible for 71% of global emissions. Now is the time for businesses to become part of the solution, cut down on emissions and waste, and contribute to cultivating a livable planet. The good news is that businesses can make a major impact and account for 60% of emissions cuts by 2030, as per the Paris Climate Accord.

Sustainable Business Statistics

The following statistics illustrate where the business world is when it comes to sustainability:

Consumer Perception 

• According to Cone Communications’ corporate social responsibility study, 63% of Americans want corporations to drive social and environmental change in the absence of government action.
• 87% of American consumers will make a purchase because a company advocated for an issue they care about.
• 76% of Americans expect companies to take action against climate change.
• 73% of Americans would stop purchasing from a company that doesn’t care about climate change.

Business Perception

• According to the 2018 BSR/Globescan survey of business leaders in charge of sustainability and corporate social responsibility, respondents identified ethics and integrity as the No. 1 reason for pursuing business sustainability.
• 75% of corporate sustainability professionals say that businesses need to get better at including sustainability into business strategy to address global mega-trends.
• 64% of North American respondents said sustainability needs to influence core business activities such as strategy and value creation; 84% of European respondents and 89% of respondents everywhere else agreed.
• Less than 33% of respondents said their businesses are actually engaging with sustainable strategic planning.

Business Impact

• According to a report from The New Climate Economy, 95% of plastic packaging — the equivalent of $120 billion annually — is wasted after the first use, and microplastics have been found in 114 aquatic species.
• Over 140 million people will be displaced from their homes by 2050 if business continues as usual.
• Industries must drop carbon emissions by 40% by 2060 to stop the planet from warming over two degrees Celsius.
• In combination with action from governments and other stakeholders, businesses that take action on climate change by adopting green policies, technologies, and strategies for growth could realize a total of $26 trillion in economic benefits.

The case for sustainability is strong. To become sustainable, your business must engage everyone who can contribute.