Sustainability and Business

Table of Contents
Introduction:.........................................................................................................................................3
Appendix 1.......................................................................................................................................3
The Impact of Green Energy and Sustainable Practices on Global Businesses......................................3
Appendix 2: Financial Performance Correlation with Sustainability Actions...........................4
Appendix 3: Jobs related to green energy in a few countries...............................................5
Sustainability today an analysis of its opportunities and challenges...........................................5
Appendix 4.........................................................................................................................................6
Integration Strategies for Sustainability...........................................................................................7
Conclusion...........................................................................................................................................8
References..........................................................................................................................................9
Introduction:
Growing up in Nigeria, I witnessed real environmental and social challenges that have

stressed the urgency of sustainable practices. These personal connections fuel my

conviction to explore how sustainability affects global businesses. sustainability has evolved

and businesses can no longer treat integrating social responsibility, environmental concerns,

and economic viability as just an "add-on" but should start considering it as an integral part

of how things are done within an organization as a crucial factor for long-term success. This

essay would analyse the current state of sustainability in the world, review how it affects

global businesses, and proffer practical integration strategies.

Appendix 1

Source: (Our World in Data, 2020

The Impact of Green Energy and Sustainable Practices on Global

players in the global business sphere, especially since they pose a significant threat to the

planet and its inhabitants. Adopting sustainability practices offers several advantages for

international businesses, firstly embracing these practices would help to reduce their carbon

footprints, by decreasing their dependence on fossil fuels businesses play an integral role in

protecting the environment and mitigating climate change. Adopting sustainability practices
offers several advantages for international businesses, firstly embracing these practices

would help to reduce their carbon footprints, by decreasing their dependence on fossil fuels

businesses play an integral role in protecting the environment and mitigating climate change.

Embracing sustainability aids the business to reduce its operational costs, typical energy

sources, are prone to price fluctuations and supply chain disruptions, however, renewable

energy provides a greater opportunity for cost stability and reduced dependence on fossil

fuels as well (Union of Concerned Scientists, 2008). The International Renewable Energy

Agency (IRENA) reports in 2020 states that the levelized cost of electricity for solar energy

has decreased by 85% between 2010 and 2020 (IRENA, 2021), making it progressively

cost-competitive with traditional sources. In the long run, it would help not only save on

energy bills but also safeguard against environmental uncertainties.

Appendix 2: Financial Performance Correlation with Sustainability Actions

Results for investing in sustainability that are favourable or neutral dominate. Only a small number of research (based on 245

studies published between 2016 and 2020) discovered a negative correlation between financial performance and ESG.

Source: (Brightly Software, 2023)

Another impact is that going green can also be a powerful tool for brand image. We live in a

very conscious society and Consumers are popularly seeking businesses that show

commitment to going green. This can allow the company position itself as responsible and

forward-thinking, attracting customers who appreciate and support eco-friendly initiatives. As

a matter of fact, based on a Nielsen study, 66% of global consumers are willing to pay extra
for sustainable goods and services stressing the potential for an increase in brand loyalty

and market share for businesses embracing green energy (Forliance, 2023). In addition,

switching from fossil fuels to renewable energy sources could holds significant economic

potential by providing more job opportunities. A World Resources Institute report suggests

that the United States could create 4.5 million new jobs annually for a decade by investing in

clean energy and low-carbon development strategies (World Resources Institute, 2021).

Another prediction by the International Renewable Energy Agency in 2021 states that there

would be an increase in global renewable energy jobs 12 million in 2020 to 38 million by

2030 and 43 million by 2050 (IRENA & ILO, 2021).

Appendix 3: Jobs related to green energy in a few countries

Source: (IRENA & ILO, 2021)

Sustainability today an analysis of its opportunities and challenges

Sustainability today is a little complex and can be seen as both making progress and having

ongoing challenges. The advancement of technologies is making renewable energy more

cost-effective and accessible, renewable energy like solar and wind are increasingly

competing with traditional fossil fuels. This has also promoted a lot of investment and

innovation in the renewable energy sector, allowing expansion growth.

Source: (Our World in Data, 2020)

In addition, consumers are slowly shifting their behaviour towards environmental

consciousness. People are beginning to demand sustainable goods and services, pressuring

businesses to adopt sustainability and improve their green practices. Global movements like

the Paris Agreement which is an ambitious global action plan to fight climate change and to

significantly reduce greenhouse gas emissions while pursuing ways to keep the increase to

1.5 degrees (Chen, 2017). This has gathered support with nearly all countries agreeing to

reduce greenhouse gas emissions, signifying a growing global recognition of the need for

sustainable practices and a collective effort towards achieving it.

However, there are still some significant challenges hindering our sustainable future, one

major obstacle being a huge gap in infrastructure. The structure required to go completely or

partially green is still under development in many regions, this poses a barrier to the growth

and adaptation of renewable energy sources. Also in as much as a fully sustainable

industries heavily reliant on fossil fuels causing a lot of people to be unemployed. The local

economy may suffer greatly, even in cases where the loss of direct energy jobs is small

(Cozzi & Motherway, 2021). Adopting sustainable practices worldwide may prove difficult

because of differences in interest and development amongst countries. These challenges

can be overcome if businesses and governments continue to create, collaborate, and

commit to a truly sustainable planet for future generations.

Integration Strategies for Sustainability

For companies to effectively integrate sustainability into their core business operations, they

have to first see that sustainability transcended a mere trend and is becoming an important

strategic move for businesses today. The initial step, to this journey involves conducting a

comprehensive sustainability audit, this in-depth analysis would allow the company asses its

environmental and social impact and identify areas that need improvement and create a

starting point for measuring future progress. Then it can develop a well-defined and

comprehensive sustainability strategy that aligns with the company’s mission and values.

Setting clear and measurable goals like reducing carbon footprint, water consumption, or

waste generation is important, to help be company be accountable and track its process. To

effetely integrate sustainable practices the business must provide training and awareness

programs for its employees to enable them be equipped with the necessary skills to carry out

any form of sustainable practice in the company. Also open communication and

transparency to its stakeholders is crucial for the integration to be effective. Publishing

sustainability reports that reveal environmental and social performance data, outline

challenges and achievements, and set future goals fosters trust and encourages further

collaboration. Regular reporting on sustainability efforts, feedback exchange, problem

solving, and collaboration are also important aspects of sustainability work. Businesses can

navigate the changing environmental responsibility landscape and benefit not only the
environment and the communities they operate in, but also their own long-term success, by

putting these integration strategies into practice.

Conclusion
Embracing sustainable practices is no longer optional, but rather a strategic for long-term

success. Businesses need to shift greener in how they operate and compete, by going green

they can reduce their environmental footprint, improve their brand image, and contribute to a

more sustainable future. Although some challenges like as infrastructure gaps and potential

job displacement may exist, the collaboration between government and businesses in

continued innovation and collaboration would help in the long run to overcome these

obstacles. By embracing sustainability businesses can not only secure their own future in a

competitive global market but and help create a more just and sustainable world by

embracing sustainability.
References

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Energy Agency, International Labour Organization. Abu Dhabi, Geneva.
IRENA. (2021). Renewable Power Generation Costs in 2020. International Renewable Energy
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Morrison, J. (2023). The Global Business Environment. Bloomsbury UK. https://conestoga-
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Union of Concerned Scientists. (2008, July 14th). The Benefits of Renewable Energy Use. Retrieved
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Chen, H. (2017, November 2nd). The Paris Agreement on Climate Change. Natural Resources
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Cozzi, L., & Motherway, B. (2021, July 6th). The importance of focusing on jobs and fairness in
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Forliance. (2023, March 7th). Why Investing in Sustainability is a Smart Business Move. Forliance.
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