What is Environmental Sustainability? | Microsoft Sustainability (2024)

Environmental sustainability is about ecological balance. For nearly two millennia, humans have been carbonizing our planet, which has contributed to global climate change. According to the Intergovernmental Panel on Climate Change (IPCC), the United Nations body for assessing the science related to climate change, it is undeniable that human actions have impacted the planet, resulting in the warming of the atmosphere, ocean, and land.

As we continue to see the negative impacts of climate change, an increasing number of governments, organizations, and individuals are embracing and promoting environmental sustainability. These various groups are working towards the lofty goal of decarbonizing our world to protect our global ecosystems for the sake of future generations.

Environmental sustainability definition

Environmental sustainabilityis the ability to maintain an ecological balance in our planet’s natural environment and conserve natural resources to support the wellbeing of current and future generations.

The United States first made a national commitment to environmental sustainability in 1969, with the enactment of the National Environmental Policy Act (NEPA). According to theUnited States Environmental Protection Agency (EPA), under NEPA, the U.S. made it a national policy “to create and maintain conditions under which humans and nature can exist in productive harmony, that permit fulfilling the social, economic, and other requirements of present and future generations.”

In the decades following the passing of NEPA, public interest in environmental sustainability has continued to grow worldwide, as countries across the globe face mounting climate change challenges. In 2015, 196 parties adopted the Paris Agreement at an international climate summit known as COP (Conference of the Parties.) According to the United Nations, the Paris Agreement is a legally binding international treaty, which was adopted by almost every nation in the world in an effort to tackle climate change. The goal of the agreement is to reduce carbon emissions enough to limit the global temperature rise to no more than 2 degrees Celsius above pre-industrial levels—with an aim to keep the increase lower than 1.5 degrees Celsius.

In more recent years, many organizations have madeenvironmental sustainabilitya priority, expanding their efforts to decrease carbon emissions, reduce and eliminate waste, and consume less water.

Environmental sustainability is important for the wellbeing of current and future generations. Climate change presents a variety of complex environmental, social, and economic challenges for countries across the globe. In recent decades, the consequences of climate change have become increasingly apparent—from rising global temperatures and more extreme droughts to strengthening tropical storms, destructive wildfires, and devasting floods.

As humans and ecosystems across the planet are suffering from the damaging impacts of climate change, many individuals, communities, and organizations worldwide are embracing environmental sustainability and making this critical cause a priority. These efforts will allow us to decarbonize our planet and conserve natural resources to support the health and wellbeing of future generations.

For organizations, environmental sustainability isn’t just good for the environment—it’s also good for business. By advocating for sustainability and launching programs that support a healthier environment, organizations across all industries can build brand trust, boost customer loyalty, and enhance employee satisfaction. Environmental sustainability is no longer a luxury for organizations—it’s now acorporate social responsibility.

While organizations across the globe want to accelerate their sustainability efforts, many don’t know where to begin. If you’re looking for ways to reduce your organization’s environmental impact, here are a few environmental sustainability examples and tips to help you get started:

ESG, which stands for environmental, social, and governance, is a set of standards that organizations follow as they strive to be more socially responsible. ESG is important because this is the criteria investors evaluate as they determine whether or not to invest in a company.

Every organization has a direct impact on environmental, social, and governance concerns. Today, the way businesses approach ESG is more important than ever as environmental and social responsibility has become a focus for a wide range of stakeholders—from communities and customers to shareholders and suppliers.

Plus, when an organization commits to strong ESG standards, it can help them attract and retain top talent. That’s because an increasing number of employees are drawn to companies that care about bigger issues beyond profitability and take steps to address environmental, social, and governance concerns.

Corporate Social Responsibility (CSR) is a model that pre-dates ESG. CSR is a general set of standards or policies in which organizations consider their impact on employees, shareholders, and society as a whole. A much broader concept than ESG, CSR has more to do with an organization’s general intentions to make socially responsible decisions. Many critics have pointed out that CSR is more of public relations effort than an actual commitment to change or reporting process.

On the other hand, ESG includes more concrete policies and specific criteria that can be analyzed and measured using ESG ratings. Organizations in some parts of the world, including the European Union, are required to comply with specific ESG regulations. The U.S. is also considering introducing similar reporting requirements. Unlike CSR, ESG provides actual data that can be evaluated to provide a clear picture of a company’s social responsibility and sustainability efforts. Organizations can then tap into these insights to improve their ESG efforts.

Organizations that commit to environmental, social, and governance concerns enjoy a range of valuable benefits. For example, a strong ESG proposition can help an organization:

• Drive business growth by attracting more customers with sustainable products.
• Reduce operating costs through lower energy and water consumption.
• Increase employee satisfaction and productivity—and in turn, decrease employee turnover.
• Attract more employees and customers with social credibility and brand trust.
• Reduce the risk of regulation and government intervention and prompt government support.