Sustainability

Definition

Sustainability involves meeting present needs without compromising the ability of future generations to meet theirs. In business, it focuses on creating long-term value by integrating environmental, social, and economic considerations into decision-making processes.

5 Must Know Facts For Your Next Test

1. Sustainability reporting is increasingly required by regulatory bodies and stakeholders.
2. Triple bottom line (TBL) reporting includes financial, social, and environmental performance metrics.
3. Businesses adopting sustainable practices often see improved brand reputation and customer loyalty.
4. Sustainable accounting practices can identify cost-saving opportunities through efficiency improvements.
5. Investors are increasingly factoring sustainability into their investment decisions.

Review Questions

• What are the three components of Triple Bottom Line (TBL) reporting?
• How can sustainability create business value in terms of cost savings?
• Why is sustainability reporting becoming more important for businesses?

Related terms

TripleBottomLine: A framework that includes social, environmental, and financial performance metrics.

CorporateSocialResponsibility: Business initiatives that contribute positively to society and the environment beyond profit motives.

EnvironmentalAccounting: The process of incorporating environmental costs into traditional accounting practices.