Sustainability isn’t just a buzzword, though if you browse through any newsfeed online you’ll see business leaders, politicians, and journalists mentioning the term. They could be talking about anything from sustainable business and commerce to sustainable energy. However, it’s important to note that half the time, the word is not being used in the right context.
The reason for this is that, at its core, sustainability has four basic principles, and while they’re linked, they also have their own foundations and pillars. So what exactly does sustainability mean and how can we incorporate it into not only our personal lives, but our business ethos too?
What is sustainability?
We can trace the term back to the 90s, from a report distributed by the United Nations Brundtland Commission¹. The report focused on the importance of meeting current needs without compromising the needs of future generations.
It mentioned key phrases like sustainable development and even touched on topics like sustainable industrial development in a global context. Imagining these developments isn’t possible without tapping into each of the four principles of sustainability. Today, we see sustainability as a holistic approach to lasting prosperity but let's look at what that means in a business context.
Social sustainability
Social sustainability relates directly to people and what some may call human capital. This is where institutions and businesses don’t stand in the way of a person's universal human rights. That’s why this particular principle is often most closely associated with health, safety, inclusiveness, wellness, and community empowerment.
Environmental sustainability
We typically consider a product, intervention, or program environmentally sustainable when its environmental resources or ‘natural capital’ are preserved, maintained, and not overexploited. This could include investing in sustainable homes or ensuring the energy we use in our offices is clean. What this means is that any new products or services should carefully consider how they interact with the environment, to avoid degrading or further depleting its resources.
Economic sustainability
Economic sustainability is something that humanity has its head well wrapped around for some time, as it's so closely linked to economic growth. With economic sustainability it's all about aiming for profitability and completing short and long term actions - without running out of money.
This is a concept that not only applies to businesses, but families and individuals too. We all want to improve our standard of living, we just don’t want to run ourselves into the ground trying to do it.
Cultural sustainability
Cultural sustainability is a more recent addition to the principles, and that’s widely because of how much more receptive people are now to talking about inclusivity, diversity, and equality. Cultural sustainability can only happen when our beliefs, processes, and practices are nurtured and respected.
Applying the principles of sustainability to business practice
Ultimately, what these all mean is that as leaders and workers in the financial industry, we have an obligation to ensure sustainable practice for our clients. Whether that’s keeping up with what’s going on globally, or recognising patterns in local trade and applying that to the advice we give.
It’s also about understanding the impact that our actions have on the world around us, both in an environmental sense and a social one.
Jessica Sansom, Sustainability Director of Huel, says that “if we can understand where the impacts of the business are, quantify them, and then put in place a plan to considerably reduce them, then you’ll be on the right track.
With the shift in the UKs thinking towards the green agenda and net zero, it only makes sense that we need to adapt the way we handle mortgages, the advice we’re delivering, and the services we provide to our clients.
Sansom further notes we should “think about where we can make positive contributions - either to communities or to the environment.”
Offering sustainable advice
We’re not just talking about offering green mortgages here, though that’s ultimately where we’d like the housing industry to head. When we talk about offering sustainable advice, it’s about understanding a client’s individual needs, what they are or cannot take on, and what steps and services you can offer as a broker to them.
While Sansom says that “connecting action with results in this area is hard, we all need to improve the sustainability of our homes.” This comes down not only to seeing a drop in energy costs but rather contributing to a greater whole.
Sustainability is all about protecting and maintaining our resources, all while having as little negative impact as possible. Are there areas in your business where you feel you could be more sustainable?