There are many definitions of sustainability, derived by different organisations, expressed in different words, based on their perspectives, understanding and experiences. However, all these versions point to a common objective: making planet Earth a better place for everyone to thrive and lead a happy and prosperous life without exploiting natural resources, instead using them judiciously.

For instance, a simple definition of sustainability is from the United Nations Brundtland Commission. It defines the term sustainability as: "meeting the needs of the present without compromising the ability of future generations to meet their own needs.” This is the best and easiest definition of sustainability.

Incidentally, to explore more about sustainability and to familiarise yourselves with the emerging topics within it, check out our definitions and interpretations available here, as experts in ESG, climate technology, and sustainability markets.

Another example is the definition provided in the charter for the UCLA Sustainability Committee: “The integration of environmental health, social equity and economic vitality in order to create thriving, healthy, diverse and resilient communities for this generation and generations to come. The practice of sustainability recognizes how these issues are interconnected and requires a systems approach and an acknowledgement of complexity.”

Sustainability Definition or Concept of Sustainability

In a broad sense, the term sustainability means considering the impact of our actions—whether as individuals, businesses, or other entities—on future generations. It means weighing the pros and cons of our choices and ensuring the well-being of present and future generations.

From a business perspective, sustainability means not using up natural and physical resources so they are available for all types of businesses to use in the future. In return, this contributes to the overall environmental, social and economic development of stakeholders – nature, society and governments. This is what businesses call corporate sustainability.

International Energy Agency notes that "Total energy-related CO2 emissions increased by 0.8% in 2024, hitting an all-time high of 37.8 Gt CO2. This rise contributed to record atmospheric CO2 concentrations of 422.5 ppm in 2024, around 3 ppm higher than 2023 and 50% higher than pre-industrial levels."

So companies have a bigger role to play in protecting the natural environment and in sustainable development, as they are the main source of greenhouse gas (GHG) emissions to the atmosphere through their activities such as transportation and electricity generation.

Meaning of "Sustainability" and "Sustainable"

These terms are pretty much the same; however, the difference lies in one being a noun (sustainability) and the other an adjective (sustainable).

The term 'sustainable' refers to the ability to continue something over a period of time without damaging or harming the environment. For example, riding a bicycle is a sustainable choice because it reduces pollution. On the other hand, driving a petrol or diesel car is not sustainable because it increases pollution and harms the environment. Another example would be when someone goes fishing; if they are aware of the fish population and ensure it remains healthy and able to reproduce, it is called sustainable fishing.

Sustainability refers to the quality of being able to continue over a period of time. For example, sustainability measures and actions in a city or town include recycling programmes, green building initiatives, and waste management, among other activities.

Read more: What are the Benefits of Sustainable Development?

What should Businesses do for Sustainability?

Many companies have realised that their non-sustainable business policies can negatively impact, among other things, human lives, economic resources, biodiversity and the wider economy. As concerns about biodiversity loss, climate change, and ecological imbalance surge, they have begun to acknowledge the importance of sustainable practices and embark on a journey towards achieving them—but watch out for greenwashing attempts. For example, ESG reporting is a manifestation of this shift.

To achieve environmental sustainability, companies should switch to renewable energy like wind and solar, for their daily operations. They should also increase sustainable investing and integrate sustainable practices into company policies, including energy efficiency, waste reduction, and water conservation.

What is Sustainable Investing?

Investing is the process of spending money to acquire assets or items to generate income through their appreciation over a certain period of time. Investors in this regard focused on two main factors: Risk and Reward, in their investment strategy.

However, today, majority of the investors recognise the growing importance of environmental, social, and governance (ESG) factors in their investment decisions and processes, as these factors turn into real economic factors in the long term.

Hence, sustainable investment refers to investment decisions and processes that focus on three factors: Risk, Reward, and ESG.

Sustainable investment strategies include ESG integration, impact investing, thematic investing, stewardship, and screening.

3 Main Principles of Sustainability

Sustainability pillars or legs are classified into three types:

Environmental Sustainability

This means making choices that protect nature. For example, what we eat, what we wear, and how we travel. Using renewable energy like solar and wind as said above can cut down on pollution. Another example is managing water efficiently — about 80% of countries do this to keep water clean, conserve resources, and mitigate the impacts climate change.

Social Equity

Social sustainability is about making sure people, including workers, communities, and customers are treated fairly. It covers diversity, fair wages, addressing LGBTQ+ community's concerns, safe working conditions, education, and healthcare.

Social justice means giving everyone a fair chance to access resources and opportunities. Many developing countries find this incredibly difficult, especially with education and poverty. However, the situation is improving at a faster pace. For instance, in India, there is a significant reduction in poverty, says the World Bank report published in April 2025.

Economic Sustainability

This is about creating jobs and growing the economy in a way that lasts. Sustainable businesses and responsible investments conserve natural and financial resources for the long term. They acheive this by producing goods more efficiently, waste less, and reduce harm to the environment so that future generations have enough resources to depend on when their needs arise.

Read more: What is CSR? Corporate Social Responsibility Meaning, Types, and Benefits

Key Challenges in Business Sustainability

Many organisations and their senior leadership teams are ready for a sustainable shift, but the hard part is transitioning from ambition to execution. Businesses often struggle and become unsuccessful in this transition process.

Following are some of the big challenges that thwart companies from achieving a sustainable transformation:

Lack of Plan

It is common to see companies targeting ambitious sustainability plans, such as net-zero goals, which is great and commendable. However, there is a tendency for them to focus only on the end result and lack a detailed plan on how to reach it. After all these announcements, if they fail to achieve the goals, it can erode the trust of stakeholders and can have huge implications.

Read more: Climate Technology: The Path to Net Zero and Sustainability

Huge Investments

Sustainability is a large-scale transformation that requires major investments in acquiring new technology and organised implementation efforts. The impact of these investments is difficult to quantify, as the sustainability initiatives spread over several business units and functions, from manufacturing to distribution. This is one of the main challenges that holds companies back in this transformation.

Tackling Scope 3 emissions

These are emissions that companies are not directly responsible for. They include emissions from a company's supply chain and are not produced directly by the company. Strong collaboration across the entire value chain is essential to curb this problem. But, many organisations struggle with managing Scope 3 emissions, which often leads to the exclusion of this emission category in sustainability reporting.

Inconsistent Reporting Standards

Sustainability reporting metrics and standards are evolving year after year, as a result, firms tend to focus more on their scores than on adopting a comprehensive sustainability strategy, as the pressure to report their sustainability performance mounts. This increases confusion and prompts them to rush their reporting just to satisfy regulatory requirements.

Read more: What is Sustainability Reporting? Meaning, Types, and Benefits

Despite all these challenges, companies must act now. There is value at stake in meeting new customer demands, accessing capital and managing risk. Many examples of climate solutions and mitigation efforts show how companies are working to achieve their sustainability goals.

How to Overcome Business Sustainability Challenges

The world has to deal with myriad global issues today, from climate change and inequality to social and economic imbalance. Gone are the days when sustainability was seen as an option; now investors, employees, governments, and other stakeholders insist that companies reduce their environmental footprint and give due importance to sustainability efforts.

Businesses of all sizes can become more sustainable by following the strategies below.

Understand Business Goals

Clearly defining and setting goals, and what you want to achieve from the beginning, will help build your relationship with sustainability.

• Grow your customer base by getting aligned with sustainability.
• Be seen as a green business with environmental accountability.
• Attract eco-conscious customers and boost your brand.
• Build your brand through sustainability initiatives.
• Promote net-zero in your marketing.
• Meet investor ESG demands.
• Meet emerging environmental regulations and standards.
• Get employees involved in sustainability decisions.
• Grow and operate your business more sustainably.

Identify Difficulties

Now that you have your business goals set, you might be thinking about how you will achieve them while aligning your business with sustainability.

A lot of businesses grapple with: where to begin; obtaining the resources or data; limited funds or sustainability expertise; understanding the technical side of a sustainability strategy and carbon footprint; balancing sustainability spending with the budget; carbon footprint offsetting; the complexity of the carbon credit market and project verification; and stakeholder expectations for quick wins.

So, before we go further, a quick question to address your pain points: Are you a company or an individual hoping to integrate sustainability into your operations but unsure how to begin? No worries — our ESG Marketplace helps you find the right sustainability providers who can offer expert advice and practical solutions to address your challenges.

Address Business Needs

To overcome these difficulties, you need to think about your business needs and what resources or tools will help you overcome them. Examples of business needs are:

• Simple tools to calculate and track carbon emissions.
• Expert partners to advise on carbon footprint measurement, offsetting and reduction.
• Guidance on developing and implementing a bespoke sustainability strategy.
• Reliable data and reports to back business strategies and decision making.
• Visible reporting of your environmental impact.
• Custom pricing for carbon footprint measurement and carbon reduction.
• Trusted partners with high quality, verified carbon products like carbon credits.
• Marketing materials to promote your sustainability.
• Quick fixes for current business impacts.

These are basics that every business needs to evaluate and consider, before they set their foot on sustainability journeys.

Why is sustainability important in business?

There are plenty of benefits businesses can gain by incorporating sustainability into their models and policies. Sustainability is important for the following reasons:

Sustaining Natural Capital

Natural capital refers to everything that nature provides humans to produce goods and services. It includes natural assets such as geology, soil, air, water, and all living things. A sustainable business model values and protects these resources and reduces environmental impacts to sustain and maintain them for present and future generations to use.

Cost Reduction

Sustainability can reduce costs and manage financial resources effectively. For example, installing solar panels on building rooftops can substantially reduce electricity charges and pollution. This will allow you to allocate the budget to core aspects of running a business more smoothly while also benefiting the environment.

Stakeholder Relation

A business can only survive with strong support from its stakeholders. Studies show that gaps in consensus between executives and stakeholders weaken the link between sustainability and profitability. By strengthening their "Sustainability DNA," leadership teams can improve engagement with stakeholders while creating economic value and positive environmental and social impacts.

ESG Risk Management

ESG risk management can make or break a business, well, it is true, as operating with integrity has become the new norm. By incorporating sustainability into a company's operations, you can monitor and act quickly to avoid ESG risks. For instance, responsible supply chain management can help avert or reduce risks related to human and environmental violations.

Young Talents

Young people, particularly Gen Z, are more concerned about climate change and sustainability. They want to work with companies that align with their values. So, to attract these talents to your business, sustainability is paramount. When employees are happy and feel valued, their productivity increases, contributing to the overall economic growth of the organisation.

Recap

For businesses to remain competitive in their respective markets, continuous sustainability efforts are a must for their long term viability. The changing business landscape is demanding them so much like never before, as a result of global warming and climate change.

For businesses, integrating sustainability not only contributes to environmental preservation but also improves brand reputation, attracts eco-conscious customers, and meets regulatory requirements.

The definition of sustainability is simple, but the journey towards it might be complex, with challenges like investment demands and emissions management on the rise, only detailed planning and a real commitment to sustainable development goals can lead to meaningful results. Eventually, the benefits—ranging from cost savings and risk management to stronger stakeholder relations, talent attraction, and economic and social development—spotlight the value of embedding sustainability into core business strategies.

Frequently Asked Questions (FAQs)

What is the best meaning of sustainable?

The term sustainable refers to the ability to continue an activity over time without causing harm to the environment. For example, taking the bus instead of driving a private car is considered a more sustainable choice for ecological health.

What does ‘sustainability’ mean?

Sustainability is the quality of being able to continue over time in a way that doesn’t damage natural resources or the environment. Actions like recycling and managing waste responsibly are examples of sustainability in practice that conserve natural resources.

What is sustainability in one word?

Endurance or balance.

What is a simple definition of sustainability?

"Meeting the needs of the present without compromising the ability of future generations to meet their own needs," defined by the United Nations Brundtland Commission.

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