Why is sustainability important for business?

Right here and now, the growing, production, distribution, reuse, recycling and disposal of goods and services by business, industry and enterprise - to meet the needs, desires and aspirations of people all around the world - is at the heart of the ecological, social, economic and political challenges we face.

For example, at the most basic production and disposal levels:

• it takes 162g of oil and 7 litres of water to manufacture a 1 litre bottle of water
• the amount of waste placed in landfill each year in Australia is enough to cover the state of Victoria
• for each tonne of paper that is recycled:

+ 13 trees are saved

+ 2.5 barrels of oil are saved

+ 4100kWh of electricity are saved

+ 4 cubic metres of landfill are saved

+ 31,780 litres of water are saved

• each year Australians use 6.9 billion plastic shopping bags. Tied together, this number of bags would stretch around the Earth 37 times

Our current ways of doing business are overwhelming the Earth’s systems, cycles and resources - its capacity to support human life.

It’s essential we change our current global economy of waste and destruction into one of smart-growth that aligns closely with the systems and cycles of nature and supports equal opportunities for all people.

Business is in a prime position to spearhead innovation and creativity in ways that will both reduce our unsustainable ways of living and develop greater sustainability.

Business can profit from sustainability in many ways by:

• Reducing resource use (energy, water etc) where costs for energy, electricity, fuel, gas, water, materials, packaging and so on are stabilised or reduced
• Developing new eco-friendly and consumer-healthy products for the emerging wave of green consumers and creating whole new markets of loyal, ethical customers
• Better meeting the emerging ethical and environmental demands of customers and clients, business can create long term, meaningful relationships with its customers and suppliers
• Being better prepared for the introduction of environmental and social regulations imposed by government, business can reduce the stress and costs of changing the way it operates and ensure it is compliant with government rules
• Being more resource-efficient in their operations, business can reduce the risk of increasing costs, and interruptions and shocks to operations
• Building long-term relationships and trust with customers, clients and suppliers, businesses are more likely to weather unexpected shocks and changes to their operations and industry sector
• Aligning personal values with business operations, both business owners and staff will be more committed to the businesses’ success and longevity
• Developing ethical and sustainable practices, businesses can build new customer bases and expand their existing customer base
• Creating a more accessible and meaningful business and business story for our changing times, new customers are likely to be attracted to your business and your existing customers are more likely to remain loyal
• Connecting and collaborating with like-minded businesses and their owners, business can create and grow local economic and business strength

Sustainability in business can generate:

• Operational cost savings
• Operational cost stabilisation
• Increased capacity to meet government regulations
• Increased attractiveness for government grants and incentives as well as ethical investors
• Recruiting of new customers
• Strengthening existing customer base
• The creation of new products, goods and services that meet emerging customer demands