Sustainability Flashcards
(15 cards)
Mega Trends
- Climate Change
- Demographic shifts
- Technological disruption
- Fracturing world
- Social instability
Climate Change and Resource Scarcity
- rising temperatures are predicted to lead to significant and permanent environmental changes
- pressure on natural resources is predicted to increase dramatically (food, water, …)
- rising sea levels endager cities and countries
Demographic Shifts
- Global urban population is increasing
- Cities attract talent, ideas, share knowledge and support businesses development
- Cities generate most of the world’s GDP (85% in 2015)
- Cities elevate the living standards of their citizens (e.g. China)
Technological Disruption
- when a new piece of technology changes the way consumers, companies, and industries operate
- the pace of technological innovation is increasing
- technology is a prerequisite for adressing the challenges caused by the megatrends
Fracturing World
- more countries are competing for global power which creates a larger number of spheres of interest
- some try to promote their own systems, others aim to disrupt
- many nations are caught in the middle, having to choose sides or try to navigate independently
- creates a more complex world
- competition may also lead to stronger and more diverse players
Social Instability
Asymmetry, Disruption, Age, Polarisation and Trust
Perspektive of Companies
- Companies have formed larger teams that specialize entirely in ESG and sustainability issues
- Companies must take sustainability into account when developing products for their customers
- Products have to be less harmful to the environment and at the same time, the price needs to be attractive to consumers
Enviromental Social Governance (ESG)
A holistic framework that measures the sustainable and ethical behaviour of a business.
They are part of many EU-Regulations
Environmental
- Climate protection
- Adaptation to climate change
- Protection of biodiversity
- Protection of healthy eco systems
- Protection of resources
- Circular economy
- Reduction of environmental pollution
- Sustainable land use
Social
- Recognized labor standards
- Ensuring occupational health and safety
- Fair wages
- Fair working condictions
- Ensuring sufficient product safety
- Inclusive projects or consideration of minority concerns
Governance
- Tax compliance
- Anti-corruption measures
- Sustainability management by the Board of Directors
- enabling whistle Blowing
- Data protection
- Transparent information
Perspektive of Companies: Reasons for Sustainability
Long-term success
Sustainability helps secure long-term profitability by reducing risks and increasing resilience
Reputation and Trust
Being sustainable improves the company’s image and builds trust with customers, investors, and employees
Cost savings
Using resources efficiently can lower costs
Innovation
Sustainability drives new ideas, products, and business models
Regulations
Companies that act early can better adapt to future environmental and social laws
Attracting talent and investors
More people want to work for or invest in responsible companies
Taxonomy Regulation
A legally binding EU regulation that defines which economic activities are environmentally sustainable
Taxonomy Regulation: Purpose
- Prevent greenwashing
- Direct investments toward truly sustainable activities
Taxonomy Regulation: The Six Environmental Objectives (E in ESG)
- Climate change mitigation
- Climate change adaptation
- Sustainable use and protection of water and marine resources
- Circular economy
- Pollution prevention and control
- Protection and restoration of biodiversity and ecosystems
