As part of the corporate
corporate sustainability
there is what is known as economic sustainability. This, together with
social sustainability
y
environmental sustainability,
sets the pillars for future economic
future economic development
development worldwide.
Sustainability, as applied to business, is the way to satisfy the needs of consumers without compromising future generations. It is to meet the current demand from a social, environmental and economic perspective. In other words: based on a
circular economy
fair for people, for our natural environment and that guarantees future economic development.
Definition of economic sustainability
But what iswhat is economic sustainability? exactly? We could say that the economic sustainability is one of the pillars of corporate
corporate sustainability
It is closely linked to social justice, social welfare and environmental respect, since the balance between all of them is vital.
The economic dimension of sustainability refers to the implementation of sustainable criteria within the organization, in its capacity to produce or provide services in a profitable manner, optimizing the use of available resources to the maximum. It is about doing business in a responsible manner.
Examples of economic sustainability
We found examples of economic sustainability companies that have decided to reuse
reuse discarded or surplus raw materials, reintroducing them back into the production process and avoiding the extraction of new materials, as well as minimizing the cost of waste management.
We have also found examples of economic sustainability in companies that have decided to reuse discarded or surplus raw materials, reintroducing them back into the production process and avoiding the extraction of new materials, as well as minimizing the cost of managing the waste generated.
Also in those corporations that have designed
energy saving plans
or that have trained
have trained their staff in the proper use of water resources, electricity, etc.
water, electricity, etc.
But without a doubt, one of the most effective strategies to ensure economic sustainability is the economic and, incidentally, environmental and, incidentally, environmental sustainability, is to carry out a Life Cycle Assessment (LCA).
Life Cycle Assessment (LCA)
of a product or service to reduce its environmental
environmental impact
i.e. its
carbon footprint
Why is economic sustainability important?
Measures such as those mentioned above not only contribute to creating goods, services or processes that are kinder to the planet, but also entail significant savings for companiesenabling its economic sustainability The company has been able to reduce its expenditure over time thanks to lower spending and the availability of resources as a result of this wasteful spending restraint.
This cost reduction comes from a lower use of energy and raw materials, from an optimization of manufacturing, storage, logistics and transportation processes, and even from greater efficiency in services related to marketing and communication actions.
The economic sustainability is important because it
it makes it possible for companies to survive
sustainable activities over time, as they do not waste or damage resources or raw materials. In other words, a growth model that respects society and is viable.
Economic sustainability indicators
There are indicators to measure the economic economic sustainability of a project or the economic sustainability of a project or the economic sustainability of a company. Some of them are:
- Working capital.
- Debt.
- Turnover.
- General and reduced liquidity.
- Profitability.
- Gross value added.
However, all these indicators can be confusing if they are not put in context, in relation to the environmental and social sustainability they promote, as mentioned above. For this reason, some economic sustainability indicators that we should include are:
- The level of utilization of the resources already circulating in the market.
- The development of innovative solutions that maximize efficiency levels.
- The design of goods with a durable life cycle over time.
- The use of clean and renewable energies versus the use of other transitional and more polluting energies.
- An increase in the levels of sustainable and qualified development over and above exponential and quantitative growth.
In order to measure them and make the right decisions regarding the future of the company and its activity, SMEs and large companies can count on
technological solutions based on business sustainability criteria
. Because it has never
digitization
digitalization had proved so decisive on the road to corporate sustainability.
sustainability.
