10 essential sustainability terms for beginners
- NVS Pawan
- Aug 13, 2024
- 4 min read
Hey there! Since you’re checking out this article, you’re probably new and a bit curious about the buzz around sustainability. This piece is your gateway to seeing how businesses around the globe are gearing up for the future.
Introduction
The world’s population and human activity is growing super-fast, putting a huge strain on our planet’s limited resources. It’s becoming a real challenge to keep up with feeding and supporting so many people. We’re starting to see the impacts of some irreversible changes more and more around the globe. In response, countries are stepping up to address the misuse of natural resources. Here’s a rundown of the key ideas you should know about these efforts:
1. Climate Change:
Climate change is the long-term shifts in temperatures and weather patterns. At present, human activities of burning fossil fuels like coal, oil and gas are the main drivers of climate change. We’re seeing things like melting glaciers, rising sea levels, and disappearing marine life as a result.
2. Sustainability:
Sustainability is defined as meeting the needs of the present without compromising the ability of future generations to meet their own needs. It’s all about keeping the world in good shape so that the people coming after us can enjoy it too.
3. Sustainable Development Goals (SDGs):
This is universal call of action to end poverty, protect the planet and ensure peace and prosperity for all people. They were adopted by the members countries of the United Nations in 2015 (Paris Agreement) to achieve the goals by 2030. There are 17 SDGs designed to end poverty, hunger, AIDS and discrimination against women and girls. All countries are required to take concrete steps towards achievement of these goals.
4. Green House Gas (GHG):
A gas that contributes to the natural green house effect i.e. these gases act like a blanket wrapped around the earth, trapping the sun’s heat and raising temperatures. There are six GHGs viz., carbon di oxide, Methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons and sulphur hexafluoride. Emissions of all these gases are measured in terms of carbon dioxide equivalents. Picture being stuck in a closed room on a sweltering summer day!
5. Carbon Footprint:
It is the amount of carbon dioxide (or its equivalent) added to the atmosphere associated with all the activities of a person or other entity (building, company, event, country, etc.). Carbon footprint includes direct (manufacturing, transportation etc) and indirect emissions (electricity associated with the goods and services consumed). They are generally reported in “tonnes of CO2-equivalent”. Consider your carbon footprint next time you drive alone!
6. Stakeholders:
Stakeholders means individuals or group of individuals or entities who have an interest in and are impacted by the policies and activities of the business, organisation or project. They could be internal (shareholders, employees, labourers, etc.) or external (government, suppliers, local community, customers, etc.). The whole idea of stakeholders is that a business isn’t just about making money for its shareholders. It should be open about how its actions impact everyone involved.
7. Corporate Social Responsibility (CSR):
It is a concept where businesses integrate social and environmental concerns in their business operations and interactions with their stakeholders instead of only considering economic profits. In simple terms, it is the steps taken by a company to make a better society and cleaner environment. It's kind of like the philanthropic work people do, but with businesses getting involved instead.
8. Environment, Social, Governance (ESG):
ESG is a collective term for a company’s impact on the environment and the society as well as robustness and transparency of its governance. It is a framework to assess how the company incorporates the environmental, social and governance practices in its operations. ESG builds on the principles from CSR and adds clear metrics to better measure how a company is doing and what impact it's making
9. Sustainability Reporting:
It is a form of non-financial reporting in the annual report of the company. It enables the company to convey their progress toward goals on various sustainability parameters, including environment, social and governance. It includes disclosure of the positive and negative impacts of their actions on the environment and society. Sustainability Reporting is now a mandatory requirement for some businesses in different countries, and it's likely to become just as important as financial reporting in the future.
10. Sustainable Finance
It refers to the process of taking into account ESG considerations when making investment decisions leading to more long term investments in sustainable economic activities or projects. More and more investors are considering ESG factors to make sure they're backing businesses that are resilient and set up for long-term success.
Conclusion
Sustainability has gone from just a talking point in meetings to a major shift in how businesses run. It’s not just about feeling good—it’s crucial for surviving in a world dealing with climate change, resource shortages, and social issues.
I hope this article helps you see the importance of everyone adopting sustainable practices right now. Good luck!
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