Corporate Sustainability

As we will discuss in this chapter, companies are an important steering parameter for sustainable development as they develop new, more sustainable products and services or improve the sustainability of their organizations and internal processes. However, companies will not be willing to make a substantial contribution to sustainable development if this does not also pay off economically. Current developments suggest that corporate sustainability is becoming increasingly important in both the field of sustainability policy and the field of management. Five reasons have been identified for these developments. First, there is societal pressure on companies to do their part for sustainable development, which will lead to stricter policies and shifts in demand. Second, many new business opportunities are emerging for companies, which also makes it attractive to profitable invest in this area. Third, companies should worry about the immediate impact of climate change on their operations. Fourth, there is a growing risk of litigation over climate change. Fifth, the financial sector is also doing its part to increase the pressure on companies, in some cases banks are making harder for unsustainable companies to obtain credit.