What does it mean to be sustainable
Sustainability. An idea on which the younger generations’ future can be built
Sustainability has become a key concept for evaluating organisations. Bodies, institutions and companies have an obligation to behave responsibly in order to pursue their own objectives without compromising the possibilities of future generations.
The activities of companies are considered sustainable if they not only take economic and financial factors into consideration, but also ESG criteria. The three letters in this acronym refer to:
- Environmental, concerning activities that impact the environment and the territory;
- Social, which includes all initiatives with a social impact on the community;
- Governance, which concerns the internal aspects of the company and its administration.
From an environmental perspective, it assesses whether the company is committed to containing polluting gas emissions, if it correctly disposes of waste, and whether it promotes energy efficiency and the diffusion of renewable energy.
The second part is social. The factors that affect this assessment are the focus on safety, on the development and welfare of employees, and the relationships with clients, suppliers, local communities and other relevant stakeholders.
The last part, that of governance, assesses pay and bonus equity, the transparency of financial information, compliance with tax and legal regulations and the Risk Management process.
The adoption of responsible behaviour in these three areas contributes to the creation of sustainable value and generates advantages for both companies and the community.
