
Corporate sustainability refers to the practice of conducting business in a way that takes into account the environmental and social impact of the company's operations to create long-term value and resiliency. This includes reducing the company's carbon footprint, developing sustainable products and services, and promoting ethical business practices.
One of the main drivers of corporate sustainability is the growing awareness of the importance of addressing environmental issues such as climate change and resource depletion. Companies are also recognizing the financial benefits of sustainability, such as cost savings through energy efficiency and reduced waste.
Companies can apply sustainable practices in a variety of ways. To lessen their reliance on fossil fuels, they could, for instance, purchase their electricity from renewable energy sources like solar or wind power. They can also put recycling and waste reduction strategies into place, as well as create sustainable products and packaging.
Another important aspect is the promotion of ethical business practices. This includes ensuring that the company's supply chain is free of forced labor and child labor, and that the company does not engage in bribery or corruption. Companies can also promote diversity and inclusion within their workforce and support the local communities in which they operate.
One of the most notable examples of corporate sustainability is the growing number of companies that have set science-based emissions reduction targets based on the SBTi guidelines. This is a method for companies to set a target for reducing their greenhouse gas emissions in line with the level of decarbonization required to keep global warming limited to 1.5°C in alignment with the Paris Agreement and the Intergovernmental Panel on Climate Change (IPCC).