Sustainability is a very complex concept that involves human activity and its interactions with the environment. It tackles the resources consumption rate without exhausting the planet.
The main goal is to focus how our present actions would impact the future generations and mitigate that impact. And, that is currently the universal vision of the United Nations for setting “sustainable development” goals.
Sustainable development is defined as the development that” fulfilling the present need without compromising the ability of future generations to meet their own needs.”
Sustainable development is not only limited to environmental concerns but also to any field related to the people's quality of life. The main problem facing sustainability is the climate change caused by human activities that alter the environment.
It is something that all humans face, no matter your location, sector or socioeconomic status. It is a global issue that will impact every single human in different ways. The World Economic Forum Global Risk Report identifies Climate Action Failure as the largest risk this decade.
Source: Global Risks Report 2022 | World Economic Forum (weforum.org)
The world has already warmed 1°C above pre-industrial levels and we are on track to surpass a 1.5°C global temperature rise by 2040 and greater than 3°C by 2050 in a mid-case scenario. Businesses of all sectors must approach climate change systemically, changing their overall business strategy to better understand, anticipate and navigate new risks and opportunities. Business as usual” is incompatible with addressing the climate challenge.
Successful businesses will be those that are able to adapt to and thrive through this transformation. Building climate resilience through business strategy development will help reduce risks and uncover new opportunities. Limiting global warming to 1.5°C will require a deep transformation of economic systems, eventually leading to a reprioritization of economic activities.
Source: Carbontracker
Only those companies that are most prepared, creative and skillful will thrive. Companies that embed resilience will benefit from strong value propositions and strategic differentiators – all of this while actively leading the transition.
The Taskforce for Climate-Related Financial Disclosure (TCFD) provides the framework for companies to identify and manage both risks and opportunities. Refer to Task Force on Climate-Related Financial Disclosures | TCFD) (fsb-tcfd.org) for further details.
