What is corporate sustainability?

Last updated: December 6, 2023

Sustainability is increasingly a crucial differentiator for businesses that reshapes the way companies operate and engage with their stakeholders.

When you take the right approach, corporate sustainability will allow your organization to embrace the responsibility to protect our planet while unlocking untapped opportunities for long-term growth and success.

Need some guidance to inform your corporate sustainability strategies? In this post, we’ll cover:

Corporate sustainability definition

Corporate sustainability is the long-term approach of integrating environmental, social, and economic factors into business strategy and operations.

Why sustainability is important for businesses

As more consumers and investors prioritize sustainability, businesses that adopt sustainable practices have a competitive advantage in the market. Many benefits come with increased focus on these efforts, including these:

Resource efficiency

Companies everywhere are facing the pressure of doing more with less. Sustainable practices can help you make the most of your resources, reduce waste, and lower costs.

Regulatory compliance

In some industries, staying on top of requirements is a must for staying in business. Adhering to environmental regulations may help businesses avoid fines and other issues, while also demonstrating good corporate citizenship.

Risk management

Change is inevitable, but you can take steps to manage the concerns that come with it. Sustainable operations help mitigate risks related to climate change, resource scarcity, and different consumer preferences. According to PwC research from 2021, 76% of customers plan to stop doing business with companies that don’t treat employees, their communities, and the environment well.

Brand reputation

A commitment to sustainability can improve a company's image and attract top talent. If you can show that you’re making a positive impact on your team members, the community, or even the world, it may be easier to pull in people who share the same vision to your organization.

Long-term success

By helping you reduce costs, minimize risks, and tap into new markets, sustainability can contribute to a company's growth. It’s a win-win. Better for the planet and for your organization’s bottom line. A research report from Accenture shows that companies that merge high levels of innovation with sustainability and trust outperform peer companies in their industry, with 3.1% higher operating profits and greater shareholder returns.

3 pillars of sustainability

A comprehensive sustainability framework should be built on 3 pillars: environmental, social, and economic. Companies must give these components equal attention, as they each play a vital role in sustainability success. Here’s a closer look:

Environmental

The environmental pillar focuses on minimizing your company’s impact on the planet. This includes reducing greenhouse gas emissions, conserving water, and minimizing waste. It also involves investing in renewable energy sources and using eco-friendly materials.

Social

The social pillar emphasizes the well-being and fair treatment of employees, customers, and communities. This includes guaranteeing safe and healthy working conditions, promoting diversity and inclusion, and supporting local communities.

Economic

The economic pillar is about maintaining responsible business practices while you ensure your company’s financial stability and growth. This involves managing risks, investing in research and development, and fostering innovation. A sustainable economic strategy supports long-term profitability and value creation for stakeholders.

Measuring Corporate Sustainability: the road to a greener future with Uber for Business

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Corporate sustainability examples you can implement

Not sure where to start with sustainability or what your company can do to drive real change internally and in the world? Below are some corporate sustainability initiatives that you can consider to get the ball rolling.

Green office initiatives

This may include implementing energy-efficient lighting, promoting a paperless workplace, and encouraging employees to use public transportation or carpooling. These initiatives not only reduce resource consumption but can also save money on energy and material costs.

Sustainable supply chain management

By choosing suppliers that prioritize environmental and social responsibility, you can promote sustainability throughout the entire value chain, which reduces the overall impact on the planet and society.

This is one area that many organizations are focusing on, as 57% of companies have started using energy-efficient or climate-friendly machinery, technologies, and equipment, according to the Deloitte 2022 CxO Sustainability Report.

Carbon capture and offset programs

Your organization can invest in innovative carbon capture technologies to reduce greenhouse gas emissions or support projects that sequester carbon, like reforestation initiatives. You may also participate in carbon offset programs, which compensate for emissions by investing in verified projects that reduce greenhouse gas emissions elsewhere.

Employee education and engagement

To create a culture of sustainability, you can offer training programs and workshops on sustainable practices, encourage employee participation, and promote a company-wide sustainability policy. This can help inspire employees to contribute to your long-term goals.

Electric and autonomous vehicle fleets

Transition your fleets to electric or hybrid models to reduce emissions and reliance on fossil fuels. Additionally, investing in autonomous vehicle technology can optimize route efficiency, further reducing environmental impact and operational costs.

How to choose (and make progress on) your sustainability goals

What does it take to put the pieces of the puzzle together and make sustainability part of the fabric of your organization? Use this step-by-step process to determine your organization’s current status, set the right goals, and make an impact.

Assess current performance.

Conduct a sustainability audit to understand your organization’s efforts. Ask: What initiatives do we currently have in place? Is there a process for tracking progress? Are there obvious strengths and weaknesses?

Consider standards.

Familiarize yourself with international frameworks and standards, like the GRI Standards, that enable organizations to understand and report their impacts universally or in their sector.

Find the gaps.

Engage with stakeholders to identify any concerns they have or issues that may not have been uncovered in the initial assessment. This step helps you create a more complete picture of the sustainability challenges and opportunities.

Align with business strategy.

Integrate sustainability goals into your overall business strategy to ensure that the company's leadership and resources will support them.

Develop an action plan.

Create a detailed roadmap for achieving your sustainability goals, including specific actions, timelines, and responsibilities.

Establish key performance indicators.

Identify quantitative and qualitative metrics to measure progress toward your sustainability efforts.

Communicate your goals.

Distribute your action plan internally to build awareness and excitement. You may also choose to share your goals publicly to demonstrate your company’s commitment to sustainability.

Remember: this is an ongoing effort, not a one-time initiative that companies can set and forget. Having the plans in place is a good first step, but you’ll need to monitor and adjust as your organization makes progress.

Challenges when implementing corporate sustainability practices

Once you’ve decided to move forward with sustainability initiatives, the real work begins. That said, when you understand what roadblocks you may encounter, you can create ways to overcome them. Some of the biggest challenges to improving corporate sustainability include:

Initial costs

Corporate sustainability initiatives often require a significant upfront investment, which can cause hesitation for companies. Examples of these expenses may include the costs of new equipment, infrastructure upgrades, research and development, or employee training.

Implementing change

The transition to more sustainable business practices requires companies to adapt their operations, culture, and mindset. This can be a complex and time-consuming process involving shifts in established workflows, supply chain management, and internal policies.

Measuring success

Assessing the effectiveness of sustainability efforts can be challenging because of the multifaceted nature of these initiatives and the lack of universally accepted metrics. You need to develop comprehensive monitoring and evaluation systems and consider how you’ll determine what metrics are meaningful.

Complex regulations

To navigate the evolving landscape of environmental and social regulations is no easy feat. Compliance with various local, national, and international laws and guidelines may require extensive documentation, reporting, and auditing.

The future of corporate sustainability

It’s clear that sustainability isn’t just something that’s nice to think about or a passing trend. The integration into core business strategies will become increasingly essential, as companies recognize the long-term financial, reputational, and operational benefits of responsible and sustainable practices.

As you move forward, adopt a holistic and proactive approach to corporate sustainability strategy. A focus on continuous improvement is the key to making progress. By weaving this into the structure of your organization, you can work toward creating a safer and more equitable world for all.

How Uber for Business can help you on your journey to corporate sustainability

In the pursuit of more sustainable business practices, companies are increasingly turning to solutions that help them reduce their environmental impact while streamlining their operations. Uber for Business offers a platform that promotes more sustainable business travel using Uber and options to reduce waste through meal programs and deliveries with Uber Eats.

Our analytics and reporting tools also empower you to help measure and showcase your sustainability efforts with ease and precision. Metrics are available in a user-friendly dashboard, and you can even check the estimated CO2 emissions of rides. Together, these capabilities enable you to make data-driven decisions and demonstrate your commitment to a greener future.

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