Profitability and sustainability - this is a future task that companies must face today. Not only society, but also financial institutions and legislators demand responsible and sustainable behaviour from companies. This will become increasingly important in the future, because sustainability has become a decisive competitive criterion.
Sustainable business practices are an important factor in the success of companies because they enable them to increase their competitiveness, remain attractive to investors and customers, gain access to new markets and use resources efficiently. Companies must therefore take sustainability factors into account when making decisions in order to ensure their long-term success.
Sustainability or sustainable development means meeting the needs of the present in a way that does not limit the opportunities of future generations.
It is important to consider the three dimensions of sustainability - economically efficient, socially just, ecologically viable - on an equal footing. In order to preserve global resources in the long term, sustainability should be the basis of all political decisions.
Since the UN Conference on Environment and Development held in Rio de Janeiro in 1992, sustainable development has been internationally accepted as a global guiding principle. Concrete approaches to its implementation can be found in Agenda 21, which was adopted in Rio.
Source: Federal Ministry for Economic Cooperation and Development Nov.2022
The definition of sustainability, Corporate Sustainability Responsibility (CSR) is:
Keeping sustainability records and producing sustainability reports can be a time-consuming and difficult task. However, it is important for companies to remember that sustainability is not only good for the environment and the community, but can also be profitable.
By implementing sustainability initiatives, companies can improve their bottom line while helping to make the world a better place. be seen as leaders in sustainability are more likely to attract customers and investors as sustainability becomes more important in business decisions.
Governance (corporate governance ESG)
Within the framework of a company's CSR activities, sustainability activities must be reported in accordance with EU standards. This will be briefly explained in detail
Environmental responsibility refers to the commitment of companies to protect the environment. This includes reducing emissions, conserving resources and minimising waste. Many companies have started to implement environmentally friendly policies and practices to reduce their impact on the environment.
Social responsibility refers to the commitment of companies to consider the impact of their business activities on society. This includes issues such as human rights, labour standards and community engagement. Many companies support social causes such as education and poverty alleviation.
Governance or ESG (Environmental, Social and Governance) responsibility refers to the obligation of companies to ensure that their business practices comply with the principles of good corporate governance. This includes, among other things, ensuring the integrity of financial reporting, protecting shareholder rights and maintaining effective risk management systems.