{"id":51356,"date":"2025-03-14T11:04:01","date_gmt":"2025-03-14T15:04:01","guid":{"rendered":"https:\/\/www.ienyc.edu\/the-blueprint\/?p=51356"},"modified":"2025-03-26T06:37:04","modified_gmt":"2025-03-26T10:37:04","slug":"corporate-sustainability-reshaping-global-business-standards","status":"publish","type":"post","link":"https:\/\/www.ienyc.edu\/the-blueprint\/corporate-sustainability-reshaping-global-business-standards\/","title":{"rendered":"How corporate sustainability is reshaping global business standards\u00a0"},"content":{"rendered":"\n

Sustainability is back at the top of the corporate agenda\u2014but what does this mean for the future of the landscape? <\/strong><\/em><\/h2>\n\n\n\n

Back in 2009, the Harvard Business Review published a groundbreaking article<\/a> exploring sustainability as the key driver of innovation. At the time, it was necessary to address business leaders\u2019 growing concerns that pursuing sustainability would increase costs and decrease competitiveness yet deliver few immediate benefits. Since then, attitudes have changed dramatically: sustainability is no longer seen as a tedious \u201ccheck-the-box\u201d exercise, but as a crucial component of any business strategy.  <\/p>\n\n\n\n

It\u2019s increasingly clear that consumers care about a company\u2019s corporate responsibility and sustainability credentials; in many cases, they are willing to pay a premium for products they see as environmentally and socially responsible. A 2023 study by McKinsey and NielsenIQ<\/a> found \u201ca clear and material link between ESG-related claims and consumer spending,\u201d with products making ESG-related claims accounting for 56% of all growth over a five-year period. Meanwhile, PwC\u2019s 2024 Voice of the Consumer Survey<\/a> revealed that, even amid a cost-of-living crisis, buyers will pay up to 9.7% more for sustainably sourced or produced goods. <\/p>\n\n\n\n

Corporate sustainability and corporate social responsibility: what\u2019s the difference?<\/strong> <\/h3>\n\n\n\n

These two terms are frequently used interchangeably\u2014and there\u2019s actually considerable overlap. But they are not synonymous. The OECD defines corporate sustainability<\/a> as \u201cintegrating environmental and social considerations into a company’s business strategy and operations.\u201d In contrast, corporate social responsibility<\/a> (CSR) is \u201ca business’s contribution to sustainable development.\u201d <\/p>\n\n\n\n

Since social and environmental concerns are closely linked, it\u2019s easy to understand why most view corporate sustainability as part and parcel of corporate social responsibility\u2014and vice versa. CSR is just one aspect<\/a> of sustainability<\/a>, focused on a company’s ethical responsibility to its stakeholders, with sustainability being a broader concept covering collective responsibility for the planet’s future. <\/p>\n\n\n\n

Corporate sustainability and its impact on business<\/strong> <\/h3>\n\n\n\n

Corporate sustainability is about measuring success in terms of social and environmental impact rather than in purely financial terms. However, these differing perspectives can complement each other, especially when organizations implement sustainable principles purposefully. And, as we\u2019ve seen, a socially responsible business is more likely to be a financially successful one.  <\/p>\n\n\n\n

Companies with a sustainability ethos not only create a positive social impact, but they\u2019re often also able to unlock new markets. A sustainable energy producer, for example, will attract environmentally conscious customers who want to reduce their energy bills by switching to \u201cgreen\u201d products.  <\/p>\n\n\n\n

Stakeholders, too, take note of a company\u2019s sustainability efforts. In the past, many investors may have been wary of sustainability initiatives for fear of losing out on short-term profits, but the opposite is now the case. According to a recent EY-Parthenon survey<\/a>, 90% of global institutional investors revise their investment if a company doesn\u2019t at least consider ESG criteria in its business model. <\/p>\n\n\n\n

\"corporate<\/figure>\n\n\n\n

Corporations and sustainability: successful, real-world cases<\/strong>  <\/h3>\n\n\n\n

If you need any more proof that corporate sustainability makes good business sense, take a look at some success stories from today\u2019s biggest companies: <\/p>\n\n\n\n

Google<\/strong> <\/h4>\n\n\n\n

You might not think of a tech giant as a green business, but Google<\/a> is leveraging AI to lead the transition to a more sustainable future. They\u2019re driving climate action through several projects, such as making climate information more accessible and working to address the environmental impact of AI. Google has set a goal to achieve net-zero emissions<\/a> across all its operations by 2030. <\/p>\n\n\n\n

Interface<\/strong> <\/h4>\n\n\n\n

Carpet tile manufacturer Interface<\/a> is renowned for innovation, having introduced the first \u201cfree lay\u201d carpet tiling to the USA in 1973. The company also proudly states that \u201csustainability is in our DNA.\u201d Two decades ago, Interface embarked on Mission Zero<\/a>, an ambitious program aiming for zero negative impact on the planet by 2020.  <\/p>\n\n\n\n

Since achieving this goal, the company has continued its commitment to sustainability<\/a>. Interface has reduced market-based GHG emissions at its carpet manufacturing sites by 96% since 1996, and 51% of materials used in its products are recycled or bio-based. <\/p>\n\n\n\n

Lego<\/strong> <\/h4>\n\n\n\n

\u201cWe want children to inherit a healthy planet.\u202fWe\u2019re determined to play our part in making that happen.\u201d No, this isn\u2019t an environmental campaign\u2014it\u2019s a statement from Lego<\/a> and part of its sustainability pledge. The world-famous Danish toy company has a long tradition of business corporate sustainability and CSR. It supports the circular economy by encouraging customers to pass on their unused bricks<\/a>, as they are designed to be durable and reusable in many different combinations. Lego is also investing in sustainable raw materials<\/a>, joining forces with industry to develop innovative solutions. <\/p>\n\n\n\n

Business for a better world<\/strong> <\/h3>\n\n\n\n

Companies have a duty not just to their stakeholders, but to the ecosystems and communities they operate in, too. By implementing corporate sustainability principles, business leaders can foster good governance and sound decision-making processes, creating more resilient and profitable organizations. <\/p>\n\n\n\n

If you\u2019re passionate about corporate sustainability and corporate social responsibility, the Master of Science in Business for Social Impact & Sustainability at <\/em>IENYC<\/em><\/a> is a hands-on, cutting-edge program delivered by leading academics and practitioners. Located in New York City, the international business and cultural hub, this program empowers future-ready leaders who aspire to do business with a positive social impact. Check out the program <\/em>here<\/em><\/a>.<\/em> <\/p>\n","protected":false},"excerpt":{"rendered":"

Sustainability is back at the top of the corporate agenda\u2014but what does this mean for the future of the landscape?  Back in 2009, the Harvard Business Review published a groundbreaking article exploring sustainability as the key driver of innovation. 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