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SpringerBriefs in Business
Manuel Fischer · Daniel Foord · Jan Frecè ·
Kirsten Hillebrand · Ingrid Kissling-Näf ·
Rahel Meili · Marie Peskova · David Risi ·
René Schmidpeter · Tobias Stucki
Sustainable Business
Managing the Challenges
of the 21st Century
SpringerBriefs in Business
SpringerBriefs present concise summaries of cutting-edge research and practical
applications across a wide spectrum of fields. Featuring compact volumes of 50 to
125 pages, the series covers a range of content from professional to academic.
Typical topics might include:
• A timely report of state-of-the art analytical techniques
• A bridge between new research results, as published in journal articles, and a
contextual literature review
• A snapshot of a hot or emerging topic
• An in-depth case study or clinical example
• A presentation of core concepts that students must understand in order to make
independent contributions
SpringerBriefs in Business showcase emerging theory, empirical research, and
practical application in management, finance, entrepreneurship, marketing, opera-
tions research, and related fields, from a global author community.
Briefs are characterized by fast, global electronic dissemination, standard pub-
lishing contracts, standardized manuscript preparation and formatting guidelines,
and expedited production schedules.
Manuel Fischer • Daniel Foord • Jan Frecè •
Kirsten Hillebrand • Ingrid Kissling-Näf •
Rahel Meili • Marie Peskova • David Risi •
René Schmidpeter • Tobias Stucki
Sustainable Business
Managing the Challenges of the 21st Century
Manuel Fischer Daniel Foord
Institute for Sustainable Business Institute for Sustainable Business
Bern University of Applied Sciences Bern University of Applied Sciences
Bern, Switzerland Bern, Switzerland
This Springer imprint is published by the registered company Springer Nature Switzerland AG
The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland
Preface
The Business School at Bern University of Applied Sciences (BFH) has set itself the
goal of becoming a business school with a sustainable impact. In concrete terms, this
means that we want to make a significant contribution to the end of the age of fossil
fuels. Or to put it in the words of the Wuppertal Institute: we want to enable the
transformation to a “climate-neutral and resource-light society.”
This means that we want our students to understand anthropogenic global
warming and the other grand challenges of the twenty-first century, and to know
the central steering parameters that can be used to contribute to a more sustainable
world. This applies at the individual level (e.g., how much CO2 pollution is caused
by air travel), at the organizational level (e.g., what requirements should campus
catering meet), or at the macro level (e.g., aligning the energy sector with renewable
energy).
We want to prepare our students for these grand challenges when they graduate
and become leaders in business and society. This reader is designed to provide a
solid foundation for sustainable business and to provide systems, goals, and trans-
formational knowledge for the necessary social and economic change processes. The
reader was developed over 2 years in collaboration with the Business School’s
Institute for Sustainable Business and thus represents the combined knowledge of
institute members.
The Institute of Sustainable Business is concerned with sustainable entrepreneur-
ship, its underlying values and stakeholders. Our institute takes a holistic systems
perspective and is aligned with the United Nations’ Sustainable Development Goals
(SDGs). We focus primarily on corporate sustainability, circular economy, sustain-
able consumption, and social innovation. These topics also form the core of the
reader.
At this point, we would like to mention that we also relied on external support in
the preparation of the reader. The authors gratefully acknowledge the financial
support from the WWF Funding SDSN Network. In addition, the authors would
like to thank Susan Müller, Pascal Dey, and Jörg Osterrieder for their contributions
vii
viii Preface
and helpful comments on the chapters on social innovation and sustainable finance.
Many thanks also to Raphael Zaugg, who helped us with the design of the graphics.
Transformation processes are highly complex and take place in the interplay of
technological and social innovations, political and social frameworks, and cultural
norms and values. We therefore try to live sustainability as individuals and as an
institute, even if we do not always succeed. Our motto is “sustainable mindset in
action.” We hope that this reader will help to accelerate and expand action in
this area.
We are regularly confronted with examples of how we are exceeding the ecological
boundaries of our planet: whether it is by chopping down rainforests, emptying the
oceans, or emitting so much CO2 that we face rising sea levels, melting permafrost,
droughts, and crop failures. Our society also faces major social challenges such as
poverty, social injustice, violent conflict, and child exploitation. It is undisputed that
the pressure on our planet, our livelihoods, and our standard of living will increase as
the world’s population continues to grow, and that current trends seriously threaten
the very existence of many of our societies as they stand.
In the chapters that follow, we will learn more about the major global challenges
that threaten our existence and examine the reasons science sees for our plundering
of natural resources and how we can correct this unsustainable exploitation of nature.
We will also explore how we can change our institutional frameworks to make
businesses and our economic system more sustainable. In our sustainability efforts,
there are five parameters that can steer us in the right direction (see Fig. 1). First, civil
society organization, that is, the contributions that community organizations can
make through self-organization and social innovation. Second, government has
some responsibility; by developing appropriate policy instruments, it can ensure
that sustainability is increasingly incorporated into decision-making through the
internalization of externalities. Third, the financial system provides the financial
framework for companies and individuals and can therefore also contribute directly
to sustainable development. Fourth, enterprises can also make a positive contribu-
tion to a more sustainable world through greener and fairer production methods and
the development of sustainable products. Fifth, individuals also play a role, as each
consumer contributes to a more sustainable world through what and how much
they buy.
Of course, there are other parameters that influence sustainability, for example,
the education system. However, compared to the other steering parameters, the
effect of the education system on sustainable development is less direct and occurs
primarily indirectly through the other parameters. For example, education is an
important driver of technological change or the circular economy, which in turn
contributes to greater corporate sustainability. Targeted research aims to increase the
efficiency of policy measures, contribute to sustainable financing, or study the
behavior of individuals.
As we indicate in the next chapter, the ecological and social challenges facing us
are daunting. Moreover, the time remaining to deal with the environmental chal-
lenges is fast running out. We therefore need to take immediate and well-targeted
action addressing all five steering parameters and follow our “shared responsibil-
ity” (Schneidewind, 2019).
The Intergovernmental Panel on Climate Change (IPCC) clearly emphasizes the
importance of fast action in its 2022 assessment report. “Achieving the 1.5°C Paris
goal means that global use of coal must decline by 95% by 2050, relative to 2019.
Oil use must drop by 60% and gas by 45% in that period. The decreases needed to
limit warming to below 2°C are not much lower. Under all scenarios, there is no
room for new unabated fossil-fuel projects (such as power plants), and most existing
ones will have to be wound down faster than they would have otherwise.” (The
Economist 2022)
The title of this reader is “Sustainable Business.” Why then are parameters other
than the company examined? The reason is that there are strong interdependencies
between all five parameters. Politics sets the framework within which companies
operate, for example by introducing regulations. The financial system determines the
conditions under which companies have access to new capital. Consumers make
purchasing decisions and thus also determine which products companies can ulti-
mately sell on the market. Finally, society is not to be neglected; societal values form
the backdrop for business decisions. It therefore makes no sense to look at corporate
responsibility in isolation. Rather, the individual drivers must be understood as a
system.
In Chap. 1, this reader starts with a comprehensive overview of the most pressing
social and environmental challenges. It focuses on better understanding why sus-
tainability is central to the development of our economy and society by introducing
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