Sustainability: What Is It and Do I Need to Pay Attention?

Emerging in the late 80s, the term "sustainability" has become a buzzword in various sectors, from business to personal lifestyle choices. This buzz isn’t just international but is rapidly translating to the NZ market. The NZ Post 2023 market segment report recognised that kiwi consumers are increasingly choosing sustainable companies over companies that aren’t environmentally responsible. By 2023, 72% of kiwi consumers expected sustainable options, and by 2025, 85% of consumers say businesses should take responsibility for their environmental and social impacts.  

Ultimately, this shift in consumer priorities will result in the value of the green economy reaching an estimated NZD of $4.5 trillion from the market we see today (source - BCG). BCG's latest article questions what New Zealand will be known for in 2050.

But what exactly does Sustainability and green economy mean, and why should you care? Let's dive into the concept of Sustainability and explore its importance in our daily lives.

What is sustainability for business?

Sustainability refers to maintaining or improving the quality of life for current and future generations without depleting natural resources or causing ecological damage, leaving the Earth as you found it (if not better).

But what does that mean for business?

It calls for doing your best to do good. That looks like:

·         minimising natural resource use

·         finding better end-of-life solutions

·         analysing potential climate-related risks (double materiality)

·         considering your wider implications on people and the planet, and doing so

·         all while maintaining your profit margins.

Phew, sounds tiring, huh?

To simplify the process, businesses typically use ESG or the triple bottom line frameworks, which we summarise below. These provide a structured framework to build off, one step at a time, with the ultimate goal of Sustainability being a permanent mindset within the business.

ESG Framework

Environmental	Social	Governance
·         Resource Conservation ·         Pollution Reduction ·         Climate Change Mitigation ·         Biodiversity Protection ·         Sustainable Practices ·         Circular Economy	·         Human Rights ·         Labour Practices ·         Community Engagement ·         Diversity and Inclusion ·         Access to Essential Services ·         Social Justice	·         Board Composition and Structure ·         Ethical Business Practices ·         Transparency and Reporting ·         Stakeholder Engagement

The triple bottom line (TBL)- People, Profit and Planet:

Planet	People	Profit
·         Resource Conservation ·         Pollution Reduction ·         Climate Change Mitigation ·         Biodiversity Protection ·         Sustainable Practices ·         Circular Economy	·         Human Rights ·         Labour Practices ·         Community Engagement ·         Diversity and Inclusion ·         Access to Essential Services	·         Ethical Business Practices ·         Sustainable Growth ·         Fair Trade ·         Innovation and Efficiency ·         Risk Management

Why Should You Pay Attention?

We are all Kaitiaki or Guardians for the next generation*.  While you may or may not believe that Climate Change is an issue, you will likely agree that we are or have been polluting the world, which isn’t beneficial for future generations.

Wider public opinion argues that from a global perspective, our Earth is facing significant environmental challenges, which, depending on your viewpoint, may include climate change, deforestation, and pollution, which in turn create an impact on the displacement of humanity. For our business, the flow-on effect could disrupt our supply chain and operational risk, disrupting your ability to do your job at a local level.

The current trend in business is that by adopting sustainable practices, you can help manage the risk associated with these issues and preserve the environment for future generations – a win for our grandchildren!

But what’s in it for you right now?

Being a part of that rapidly growing billion-dollar industry mentioned earlier! Economic benefits from sustainable practices can include cost savings, enhancing your reputation within your community, and tapping into a new trend of customers being increasingly influenced by a brand’s sustainability efforts and ethical practices.

·         Save money by stripping down unnecessary processes and operating costs

·         Consumers are willing to pay more for premium sustainability products

·         Stay ahead of climate legislation and consumer trends

·         Keep relevant in an international market

·         Choice – choosing to do business from an environmental or social responsibility perspective.

How to get started?

Six simple steps can get you on your way:

1. Start mapping out goals and objectives: Why are you starting and what are you hoping to achieve?

2. Complete a materiality assessment to see where your business is:  What are your core activities, and what are your positive and negative impacts? What are the areas of risk in your business?

3. Understand your industry’s perspective on their concerns for your sector and industry. How does your business measure up to these standards?

4. Identify who in your business could be a champion for sustainability.

5. What will your road map look like? Will you take small steps or jump right in?

   1. Quick initial win: Reduce, Reuse, Recycle – start minimising operational waste. Ensure appliances are switched off and look for ways to minimise water use.

6. Culture Shift - Educate Yourself and the Wider Team: learn about sustainable practices and get your staff involved.

Sounds too scary? Contact us for a consultation.

Conclusion

Sustainability is not just a trend; some would argue it's a generational attitudinal shift, initially seen in younger generations such as the Millennials and Gen Z.  These digitally native cohorts evaluate their buying choices to ensure a healthy, prosperous future. By understanding the principles of sustainability and taking manageable action, we can positively impact the world around us.

Yes, you need to pay attention to sustainability – it's part of the next generation business!

Article Links:

• NZ Post Article - Demand for sustainability

• Toitu Envirocare: Kiwi consumers prioritise the environment even as social issues grow

• Kantar Better Futures 2025, Sustainable Business Council

• BCG Mega Trends, By  Geoff Healy,  Phillip Benedetti,  Rebecca Russell, and  Richard Hobbs, August 07, 2023.

• Future of NZ Inc:  What will New Zealand be known for in 2025?, By  Kelly Newton,  Phillip Benedetti,  Matthew McQueen,  Emily Wu,  Morgan Dolfing, and  Florence Wu, March 06, 2025.

• Who Cares Wins, 2004–08, IFC Advisory Services in Environmental and Social Sustainability, by UN Global Compact Report 2004

• “25 Years Ago I Coined the Phrase “Triple Bottom Line.” Here’s Why It’s Time to Rethink It”, John Elkington, Harvard Business Review, Jun. 5, 2018

  
  

*Kaitiakitanga is a Maori concept meaning guardianship, stewardship, or the responsibility to care for and protect something, often the environment or natural resources. It's a way of managing the environment based on the traditional Maori worldview.