In recent years the firms are taking a key role in leading a concrete change towards a model of more responsible development.
But what does it really mean to promote business sustainability?
In this article, we will explore the concept of corporate sustainability, the advantages it brings and the concrete actions that companies can take to integrate it into their business model.
Let's get started!
What does corporate sustainability mean?
The concept of corporate sustainability refers to a company's ability to grow and prosper over time, ensuring a balance between economic success, social responsibility and environmental protection.
The goal is generate value without compromising the resources and balance necessary for future generations.
Often there is a tendency to associate sustainability exclusively with appearance environmental, when, in reality, the concept is much broader and also takes into account the economic sustainability And the social sustainability. It is essential that a company integrates all three ESG dimensions (Environmental, Social, Governance) in its business model, to ensure truly sustainable development.
This vision is in line with the objectives of theUnited Nations 2030 Agenda, that through the Sustainable Development Goals (SDGs) defines a global framework for addressing environmental, social and economic challenges.
Companies play a key role in achieving these objectives, through the adoption of practices that promote the reduction of environmental impact, the well-being of people and responsible management of resources.
In other words, asustainable company it does not limit itself to reducing its emissions or improving energy efficiency, but adopts a holistic approach, considering the impact of its activities on all stakeholders.
Why is it worth investing in sustainability?
Investing in sustainability offers numerous advantages for companies:
- Improving the corporate image
Implementing sustainability policies makes it possible to meet the expectations of consumers and investors who are increasingly attentive to ethical and environmental issues. - Attracting and retaining talent
Companies that invest in sustainability are more attractive to professionals, reducing turnover and hiring costs. - Energy efficiency and cost reduction
A more conscious use of resources makes it possible to optimize consumption, reduce waste, and consequently reduce costs.
The reasons why companies should focus on sustainability are increasingly evident, transforming it into a real competitive advantage compared to the competition.
In addition to economic and reputational benefits, there are also regulatory aspects to consider. Companies, in fact, must adapt to regulations such as CSRD (Corporate Sustainability Reporting Directive) and the CSDDD (Corporate Sustainability Due Diligence Directive), which require greater transparency on sustainability reporting.
In a constantly evolving regulatory environment, also in the light of recent proposals of Omnibus package, choose to voluntarily adopt sustainable practices However, it remains a winning strategy for companies that want to stand out on the market, reduce operational and financial risks, and build a more resilient business model.
Integrating sustainability into business strategies not only allows you to: anticipate future regulations, avoiding costly last-minute adjustments, but it also makes it possible to strengthen the confidence of customers, investors and business partners. In this way, companies not only improve their competitiveness in the present, but they prepare to be Protagonists of an economy increasingly oriented to sustainability.
How to improve business sustainability
Promote a sustainability plan in your business model it does not only mean taking environmental measures, but transforming the entire corporate culture in a more responsible and effective system.
Companies can improve their sustainability performance by working on three dimensions ESG key: environmental (Environmental), societal (Social) and by governance (Governance).
Let's see what strategies can be implemented in each ESG area.
Improving Pillar E (Environmental)
La environmental component ESG concerns a company's relationship with the environment and the way in which it manages its impacting about it. This includes the reduction of CO₂ emissions, but also the sustainable management of natural resources and the protection of biodiversity.
The first step to take to improve environmental performance is the Calculation of emissions generated by their activities.
This makes it possible to identify the main sources of emissions and to develop a decarbonization strategy based on targeted reduction activities.
Let's see together what some of these actions are.
- Sustainable office
The optimization of lighting and the improvement of the energy efficiency of buildings, together with other simpler actions such as paper recycling, help to limit waste and contain operating expenses. - Remote work and hybrid
Reducing commutes from home to work helps to reduce the carbon footprint linked to transport and to optimize business costs related to physical spaces. However, even remote work has an environmental impact due to digital emissions: optimizing IT infrastructures and choosing sustainable data centers helps reduce this effect. - Sustainable supply chain
Collaborating with suppliers that adopt sustainable practices and optimizing logistics to reduce emissions are fundamental steps for a responsible supply chain.
The residual emissions can then be Compensated via certified offsetting projects, which support environmental protection initiatives such as reforestation, the protection of endangered ecosystems and the development of technologies for carbon capture.
Improving the S Pillar (Social)
The social pillar ESG concerns the impact of a company on people, both inside and outside the organization. This includes respect for the rights of workers and workers, the promotion of inclusion and diversity, safety at work and contributing to the well-being of local communities.
Investing in these aspects not only improves the business climate, but also strengthens productivity, talent retention and the company's reputation, creating a fairer and more sustainable work environment.
But how can a company translate these principles into concrete actions? Here are some effective initiatives.
- Protection of rights along the supply chain
A socially responsible company must guarantee respect for human rights not only within its organization, but also throughout the production chain. This means choosing suppliers and partners that adopt ethical practices, guarantee decent working conditions and monitoring that there are no forms of exploitation or discrimination. - Training and awareness raising on sustainability
Disseminating a culture of sustainability within the company is essential to integrate ESG principles into daily activities. Organizing workshops, webinars and moments of discussion makes it possible to raise staff awareness and provide practical tools for adopting more responsible behavior. - Gamification and incentives for sustainable behavior
Making sustainability engaging through gamification helps stimulate the active participation of employees. Platforms such as PlanET they make it possible to transform virtuous actions into challenges and missions, creating a positive impact in an innovative and motivating way.
Improving Pillar G (Governance)
La governance component ESG concerns the way in which a company is managed and administered, with particular attention to transparency, ethics and compliance with regulations. Strong governance guarantees meritocracy, fairness and responsible decision-making processes. this prevent incorrect practices such as corruption and fraud.
Integrating sustainability into corporate governance does not only mean complying with regulations, but represents a competitive advantage. A responsible approach strengthens credibility in the market, reduces the risk of sanctions and increases the confidence of investors, customers and employees, thus consolidating business stability.
In recent years, transparency in sustainability reporting has become an increasingly central aspect, especially with the introduction of directives such as CSRD And the CSDDD. Although the Omnibus package has introduced some simplifications and possible delays, adopting sustainable governance practices remains a strategic choice to mitigate operational risks and strengthen business reputation.
To make governance even stronger and in line with ESG principles, it is essential to adopt tools and practices that promote transparency and integrity. Let's see some of them.
- Implementation of a whistleblowing channel
It allows employees and stakeholders to anonymously report any irregularities or misbehavior, strengthening transparency and preventing fraud or ethical violations. - Introduction of a risk management system
It helps identify, evaluate and mitigate potential operational, regulatory and reputational critical issues, ensuring greater business resilience. - Definition of a code of ethics
It establishes clear principles and guidelines to ensure behavior consistent with ESG values, promoting integrity, fairness and accountability within the organization.
How to measure corporate sustainability
Measuring sustainability in the company it is essential to understand theefficacy of the strategies adopted and identify any areas for improvement.
In addition to responding to regulatory obligations, a well-structured measurement system makes it possible to strengthen the corporate credibility, improve the transparency and attract investors.
One of the main tools for communicating the initiatives implemented by companies is the sustainability report. This document represents theformal commitment of the company in achieving sustainability objectives, measuring the progress made and indicating how it intends to improve results year after year.
To ensure clear reporting that complies with international standards, there are different reference frameworks that define the criteria for drafting financial statements.
- ESRS (European Sustainability Reporting Standards): European standards that specify the information that companies must communicate in the sustainability report and the structure with which it must be presented.
- GRI (Global Reporting Initiative): one of the most popular international frameworks, consisting of a modular structure that helps organizations to prepare detailed and consistent ESG reports.
- VSME (Voluntary Sustainability Measures for Enterprises): standards recently introduced to facilitate sustainability reporting in small and medium-sized enterprises, destined to assume an increasingly central role with the evolution of European legislation and the approval of the Omnibus Package.
