Sustainability is no longer a niche reserved for ‘green’ businesses; it is increasingly a necessity for any organization to succeed. Showing a commitment to sustainability isn’t just an ethical approach, but good business sense, with a recent BCG/MIT study showing that 44 percent of investors divest from companies with poor sustainability performance.
Professor Knut Haanaes of IMD Business School defines sustainability as: ‘a business approach to creating long-term value by taking into consideration how a given organization operates in the ecological, social and economic environment’. With a rise in CSR and transparency in organizations, this long-term value has never been more important.
Many large companies are showing an increased commitment to sustainability, such as sports retailer Adidas creating a greener supply chain and eliminating plastic bags. Similarly, car manufacturer Volvo have announced that as of 2019, all new models will be electric or hybrid.
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