Sustainability, ESG, Circular Economy, Impact, Sustainable Finance.
We are hearing these terms often now and wonder…
What is sustainability and its impact on our lives?
In the current financial, political, and business environment, sustainability has become one of the key drivers for leaders and decision makers globally. And thanks to new technologies, and ideas of humans around the world combined with their desire to live healthier, more fulfilled lives, companies and governments around the world are forced to understand concepts around sustainability, while creating real initiatives that impact communities and the environment in a positive way.
First, let’s define Sustainability.
In 1987, the United Nations defined sustainability as “meeting the needs of the present without compromising the ability of future generations to meet their own needs.”
Sustainability is about the efforts of nations, cities, organizations, to avoid the depletion of our natural resources to preserve natural capital. It also relates to the interdependencies between the environment, society, and the economy.
When we talk about the environment, we refer to the air we breathe, the water we drink, the soil we use to grow our food, the energy we consume. By society, we refer to individuals living in communities, cities, towns, countries. And by economy we refer to the efficient allocation of the scarce resources, while creating profit and generating financial returns and value creation for the various businesses that exist in society.
Do we operate in a sustainable manner?
When thinking of this question, we need to take a deep look at our behaviors. As we grow, we tend to over-exploit our natural resources. We use and throw away without really thinking of the consequences to the planet and the environment. Financially, when running a business and generating revenue, we consider the operational and administrative costs; however, we do not include the environmental and social costs associated with the creation of the products or services.
There is also an accelerated resource depletion, waste generation and environmental pollution driven by our lifestyle of buying more than we need and wanting things today. #LoQuieroYa. Let’s add some color here, the average American house size has more than doubled since the 1950s; it has grown from 1,000 square feet to almost 2,500 square feet (NPR).
It appears we are depleting our natural resources at a rapid pace which has a direct impact on the environment. This is why we need to learn, share and implement sustainable practices at work and on our daily lives.
We only have one planet.
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Con cariño,
– Carolina
