Over time, the concept of sustainability ended up being associated in a limited way by the general public with “ecological actions” or “less polluting”. The good news is that brands that claim to be sustainable are already seen more positively by consumers, even if they don't understand exactly what that means. The bad news is that the limitation of the concept in the collective imagination negatively interferes with the understanding of what “sustainable development” is.
It is important to bear in mind that the essence of the definition of sustainable is to perpetuate the planet, being directly associated with words such as legacy, continuity, balance. The permanence of the world as we know it depends on how we manage to manage our impacts. Resources are finite and we are all responsible for their preservation.
However, it can be difficult to understand what actions are being taken in practice that can guarantee this continuity. To clarify this point, we developed this article, with the objective of presenting the definition of sustainable development, what movements companies are carrying out and the role of CEBDS (Brazilian Business Council for Sustainable Development) in this context. Check out!
What is sustainable development?
Sustainable development is the one able to meet the needs of the present generation without jeopardizing the ability to meet the needs of future generations. Therefore, as already mentioned in this article, the definition is linked to the terms “legacy” and “continuity”.
Developing sustainably, whether in a small sphere (in the context of a company, for example) or in a large sphere (in the context of a country), presupposes enabling people, now and in the future, to reach a satisfactory level of socioeconomic development and cultural, making reasonable use of natural resources so as not to deplete them for future generations.
To achieve such results, planning is necessary, as well as the understanding that resources are finite. Therefore, we cannot confuse sustainable development with economic growth, since the latter usually depends on the growing consumption of energy and natural resources. The big difference of this thought is in promoting the balance between the objectives of economic development, social development and environmental conservation.
What movements are being made in favor of sustainable development?
The concern of the international community with the limits of the development of the planet is a reality: they are being carried out from great actions as the Paris Agreement and the ODS (Sustainable Development Goals), to everyday actions by companies. Understand better:
About the Paris Agreement
The Paris Agreement, signed at the COP 21 (Conference of the Parties, promoted by the UN), came into effect from November 4, 2016 and brings a commitment and action plan to be developed by nations to combat climate change.
What are SDGs?
SDG is the acronym for Sustainable Development Goals and is part of the document “Transforming Our World: The 2030 Agenda for Sustainable Development” published by the UN. The document comprises, among other items, 17 SDGs aimed at improving people's quality of life, preserving the ecosystem and ensuring economic prosperity. For more information, check out This article.
Main movements of companies in relation to sustainable development
Despite the awareness that changes are not optional, but essential, there is still a need for greater adaptation in the business sector. Adhering to sustainable development goes far beyond being good for the planet: changing attitudes guarantees the business continuity.
In research carried out in Brazil, of the 100 business leaders of the largest corporate groups present in different sectors, 99% believe that sustainability is important or very important for business and that companies play an essential role in making the change of model viable. The research reinforces the thesis that the great economic, environmental and social challenges can and should be transformed into opportunities.
Several companies are already working with the Circular Economy model
Companies face a growing challenge to expand and create value in the midst of a scenario of instability and scarcity in the supply of resources, with rising costs and uncertainty in business.
The key to managing this challenge is the Circular Economy, an alternative model that dissociates growth from the use of scarce resources, as it enables economic development within the limits of natural resources and promotes the opportunity for companies to innovate.
The concept consists of a continuous positive development cycle that preserves and optimizes natural capital, resource production and minimizes systemic risks, managing finite stocks and renewable flows.
More practically, among the Circular Economy business models is the product lifecycle extension, which aims to extend the useful life cycle of goods and their components through repair, upgrade and resale. To better elucidate the concept and other business models proposed by the circular economy, simply access this document.
Natural Capital: a way to measure how much each action against nature and for business costs
Currently, we can count on many actions and tools for the implementation of successful sustainability strategies in companies. An example of this is the valuation of natural capital, which gives the dimension of how much each action against nature and for business costs. To the financial institutions began, in several situations, to incorporate this concept when analyzing projects seeking financing, as they understood the repercussions of the risks associated with the intensive use of the planet's natural resources and their eventual impacts on the activity/productivity of corporations.
in this brief video, with subtitles in Portuguese, the World Business Council for Sustainable Development (WBCSD) further explains the importance of measuring and valuing natural capital for companies.
The sustainable lifestyle and the Brazilian
According to the study: “Sustainable lifestyle in the Brazilian context”, carried out by CEBDS, in partnership with HAVAS, Brazilians seem to be aware of the risks of excessive consumption:
84% of respondents believe that progress is not about consuming more, but consuming better;
75% understand that overconsumption is putting our planet at risk and would like to have a better society where people share more and own less.
However, in Brazil consumption is strongly associated with success:
67% of people say they respect/admire people who have enough money to buy whatever they want;
57% claim that if people consume less, they will end up with jobs;
50% of people believe that a healthy economy requires a high level of consumer spending.
The current consumption paradigm: Brazilians have good intentions, but still buy a lot.
What is the role of CEBDS for sustainable development?
O CEBDS is dedicated to promoting sustainable solutions and innovations in the business sector, in addition to training and dissemination of knowledge.
There are several important themes and areas that are worked on by the organization through the Thematic Chambers (forums that bring together representatives of companies associated with CEBDS for the construction and development of projects related to the major sustainability themes), which cover seven priority areas:
Climate and Energy
Many national and international companies have already started to manage the impact of their activities on the climate, recognizing, communicating or establishing targets for reducing greenhouse gas (GHG) emissions.
Some of them also explore market-oriented strategies. Even with the uncertainties regarding the future of regulations and market pressures, the current moment is enough for companies to obtain benefits by managing their impacts on the climate.
In Brazil, pro-climate financing consists of resources from public institutions, such as the BNDES. However, there is a growing participation of other banks and development agencies. Banco do Nordeste and the development agency Develop SP are some examples.
This increase in participation takes place both through the transfer of BNDES lines, as well as through the investment of own resources and participation in bank consortia. Much of the country's climate finance is directed towards investments in energy efficiency and renewable energy projects and technologies.
A study by the Carbon Trust indicated an offer of R$400 million in exclusive financing lines and financial instruments for this area in the country.
Communication and Education
The dynamics of sustainable development applied to the businesses of the companies materializes the concept of sustainability, aiming at the maintenance, continuity and survival of the businesses.
This dynamic affects the company's reputation and, consequently, performance, acceptance or rejection by its stakeholders. There are companies that make a commitment to the world and not only rethink their processes to make them future-friendly, but also disseminate this idea.
In this context, communication and education are strategic for companies to communicate effectively and productively with their stakeholders, in addition to government institutions and civil society, and inspire changes in behavior towards a more sustainable development model.
Companies can be agents of local, regional and even planetary change, correctly informing their actions, attitudes and postures in pursuit of sustainability. The company needs to focus on itself and value the multiplication of learning, stimulating processes that educate others to help build a more sustainable reality.
sustainable finance
Financial institutions play a fundamental role in building sustainable development. Despite generating a smaller direct impact compared to other sectors of the economy, banks have a great responsibility for granting credit and financing projects that have an impact in socio-environmental terms.
For this reason, financial institutions increasingly need to deal with the inclusion of social and environmental criteria in the traditional economic evaluation of projects. This makes the analysis much more complex, and banks that first increase their valuation capabilities will be at an advantage.
A Sustainable Finance Thematic Chamber (CTFin) is one of the CEBDS working groups and brings together the largest financial institutions in Brazil. Officially launched in 2005, CTFin has already consolidated its position as a source of induction of a new development model, working on vanguard themes for the financial sector.
CTFin helps financial institutions assume their role in promoting sustainable development, encouraging discussion of principles and best practices.
Water
There is a symbiotic relationship between the use of water resources and business. In addition to the direct and indirect dependence on this essential natural resource, some issues are points on which the business sector needs to discuss and act proactively, such as:
- multiple use of water;
- relationship between business users and their counterparts in the same basin;
- adaptation to weather conditions;
- concerns related to the level of sanitation in the country.
A greater understanding of the role of the business sector in the dynamics of water resources is an important factor for better allocation of resources, gains in eco-efficiency, cost reduction, increase in profits and, mainly, the advancement of sustainability from a decisive movement of this sector.
See examples of technology investments in nine high-consumption sectors:
Biodiversity and Biotechnology
Biodiversity underpins the functioning of the ecosystems we depend on to:
- food;
- potable water;
- health;
- leisure;
- climate regulation;
- protection against natural disasters.
Their degradation, therefore, affects the ability of ecosystems to provide essential services for human well-being and for business.
Companies that already realized in advance the need to measure their impact, their dependence on environmental services and have clear strategies to use them in the best possible way, have a competitive advantage in relation to the others.
A Biodiversity and Biotechnology Thematic Chamber (CTBio) is formed by large Brazilian companies and aims to help the sector to take advantage of new market opportunities and minimize the risks arising from the use of:
- biodiversity;
- access to genetic heritage;
- use and conservation of ecosystem services;
- natural capital tools.
CTBio monitors and participates in the Conferences of the Parties to the Convention on Biological Diversity (CBD) and in forums of the Federal Government and civil society, such as PanelBio and the Brazilian Business and Biodiversity Initiative – IBNBio.
Logistics and Transport
Logistics is a fundamental part of any company's process, from the available infrastructure to the dynamics of contact with suppliers and the final disposal of products. A capillary multimodal network with good quality are fundamental factors for the distribution of goods and services.
However, sustainability issues must be considered in this dynamic. For example, the great dependence on road transport – in the Brazilian case -, whose roads do not have a reasonable state of conservation for a country with continental dimensions. This implies:
- saturated network;
- inefficient network;
- large GHG emissions.
The urban mobility scenario also shows signs of lagging behind. The urban agglomeration, poor road planning and scarce and low-quality public transport have turned cities into a chaotic environment for commuting.
The result is an increase in the cost of transit for both citizens and companies. With this scenario, it is extremely necessary that the logistics network and urban mobility become sustainable and efficient.
The Transport sector is one of the main responsible for emissions of GHG in Brazil and in the world, largely due to the burning of fossil fuels.
The Paris Agreement converted the promise of reducing emissions into a legal commitment, the central objective of which is to maintain the average global temperature 2ºC below pre-industrial levels. Brazil committed itself – through the NDC – to reduce absolute emissions by 37% by 2025, thus requiring a task force in the area of transport.
social impact
Business is a significant driver of social impact as it:
- create jobs;
- train workers;
- build physical infrastructure;
- acquire raw materials;
- transfer technologies;
- pay taxes;
- increase access to products and services from food to energy and information technology.
Businesses affect people's assets, capabilities, opportunities and quality of life. Because these people are employees, customers, suppliers, distributors, retailers, and neighbors, their growth and well-being are critical to the company's financial success.
Today, an organization with happy customers, healthy value chains, happy local communities and support from governments and other stakeholders is well regarded. As a result, the business sector is increasingly interested in measuring its socio-economic impact for a range of reasons, from reducing costs to creating and seizing opportunities.
If you want to follow more content that presents the challenges and actions regarding sustainable development in Brazil, just access our blog!
