When we say the word "sustainability" the first connection our mind creates is with the word "environment". Issues relating to the protection of the planet are considered important by 64,7% of Italians, while social and finally economic issues are at a great distance.
Perhaps it is the Greta Thunberg effect or perhaps it is the feeling that while something concrete can be done to help the Planet with small daily gestures, the economic problem is further away.
And that is why, according to the data analyzed on a sample of a thousand people regarding the 17 objectives of the 2030 Agenda that are considered most important, only a low percentage of people mention economic growth, industry, innovation and infrastructure.
Another really significant fact is that in the sample analyzed only one in 4 Italians knows the UN sustainable development goals. (SDG – Sustainable Development Goals). Among the most informed are the children of "Generation Z" who are part of the most educated segment of the population.
The channels that disseminate information about sustainability are mainly traditional media (49,9% television and press), the web (34,6%) and finally social networks (24,9%).
85,8% of people know at least one objective among the 17 Objectives. However, nearly two million people declared that they are not interested in issues related to sustainability and the Planet and about ⅓ of them said that they do not adopt eco-sustainable behaviors because it costs too much.
Why a more sustainable economy is essential
Economic sustainability is the basis of sustainable development. Already in the 1970s there was talk of economic growth linked to respect for the ecosystem, however, it was not until 1987 that the Independent Commission on Environment and Development (World Commission on Environment and Development) declared that “humanity has the possibility of making development sustainable, that is, of ensuring that it meets the needs of the current generation without compromising the possibility of future generations meeting their needs.”
Economic sustainability can be defined as the capacity of an economic system to generate income and work to sustain populations.
Therefore, economic sustainability is the basis of any macro area of sustainability, whether it involves the safeguarding of economic, human, social and natural capital. This is because the principle of any development must be to guarantee future generations the same availability of resources that we currently have, following a principle of equity.
Sustainability is a continuous process and the three main dimensions (society, economy and environment) are closely linked to each other and cannot be analyzed individually. If when undertaking an economic strategy (for greater benefit) attention is not paid to the human and environmental sphere, sustainable development cannot be achieved.
Economic sustainability and circular economy
The sustainable economy is a type of economy that provides that the development of society is pursued on the basis of a concept of sustainability from both an economic, social and environmental point of view.
The resources used to support our economic development must be able to be regenerated to also be available for future generations.
In the sustainable economy, world heritage is the support point and driving force of social development and this heritage is not only based on environmental resources but also concerns all forms of diversity present on Earth, starting with cultural diversity.
Therefore, the concept behind the sustainable economy is the indispensable capacity of the "Earth system" to restore the energies that have been used in a given period to also guarantee them to those who will need them in the future.
To understand what is meant by “circular economy” we have to go back to 1976, when in a report presented to the European Commission, titled “The Potential for Substituting Manpower for Energy”, Walter Stahel and Genevieve Reday explained their idea of a circular economy and its impact on job creation, resource savings and waste reduction.
«In a circular economy, the value of products and materials is keeps as long as possible. Waste and resource use are minimized , and when a product reaches the end of its useful life, it is reused to create new value » .
Below we list the pillars on which the circular economy is based:
- Use few resources before the production process and limit the production of new raw materials by recycling existing ones
- Minimize waste production (from products/energy that are disposed of or wasted)
- Keep individual materials in the production circle as long as possible
Circular business models take into account not only the impact on the environment but also the economic and business factor, so it can be said that the circular economy does not coincide with the green economy.
In addition, the circular economy also produces benefits in business continuity, this is because shortages of raw materials, sudden fluctuation in material prices and possible interruptions in supply (as happened in the case of the Evergreen cargo ship stuck in the Suez Canal) They make the linear economy model unstable and not at all secure.
Inevitably, the circular economy produces benefits (social, economic and environmental) throughout the production chain, stimulating growth and continuous improvement of all production phases, design, production, distribution, consumption, collection, recycling, etc.
The current economic model has been based for decades on the production of new raw materials to make the world and the economy circulate, causing enormous environmental risks and generating continuous social problems.
However, limiting dependence on the production of new raw materials, using and recirculating materials that have already been used, strongly limits the risks listed above.
How to address business economic sustainability based on knowledge
For SMEs, sustainability is a challenge. Today, every Italian company has the obligation to rethink the industrial options of the past to take advantage of strategic opportunities related to sustainability.
It is necessary to know how raw materials are produced at the base of our manufacturing industry and what working conditions can be considered acceptable. It is important to think in terms of environmental impact both in your supply chain and in the distribution chain of the products sold and the services offered.
For this reason, the new industrial strategy of the European Union supports the sustainable growth of SMEs through a series of objectives to be pursued and through monetary funds:
- revitalize fossil fuel dependent territories using the Just Transition Fund, which is part of the EU climate finance plan;
- ensure that EU subsidies are targeted at environmentally sustainable companies and improve sustainable financing for companies in the decarbonisation process;
- use the mechanism carbon border adjustments to protect EU businesses and jobs from unfair international competition;
- develop the circular economy, promoting efficiency and energy savings and renewable energy technologies;
- use natural gas and hydrogen as potential technological innovation;
- invest in artificial intelligence and implement a single European data and digital market, define European standards on cybersecurity;
- invest more in research and development;
- review EU antitrust rules to ensure global competitiveness.
To adequately address corporate economic sustainability, companies must first collide with another factor that hinders sustainable development: the lack of knowledge.
A BCG study (an American multinational strategic consulting company) found that 90% of the business executives interviewed believe that the concept of sustainability is important, 60% of them incorporate sustainability into their business strategy, 25% of them incorporate it into their business model.
One of the main problems when pursuing business development based on sustainability is not knowing where to start.
We have reached a point of no return, perhaps soon there will be no more time to start.
We have decided to do our part, what about you?
