One of the longest ongoing debates in the modern world involves sustainability and how it can be integrated into the economic and social aspects of society. There is no doubt that sustainability plays a crucial role in the restoration of the planet and the survival of living beings. Rapid industrialization is putting undue pressure on our planet’s resources and decision-makers across the globe need to take immediate action if they wish to restore the planet.
Even nations and businesses that are simply concerned with achieving economic growth must acknowledge that the sustainability of business depends on the planet’s natural resources, such as clean water, fertile land, and a diverse population. In light of this, let’s examine the subject of economic sustainability and look at some change-provoking examples of economic sustainability.
What is economic sustainability?
Economic sustainability describes actions that support a company’s or country’s long-term economic growth while simultaneously preserving the environment, society, and culture. Despite a generally shared understanding of the types of business practices (such as the use of harmful manufacturing techniques, the production of food waste, and the burning of fossil fuels) that contribute to climate change, very few organizations today are successful in achieving economic sustainability.
The goal of economic sustainability is to achieve economic growth without making the negative environmental trade-offs that traditionally go hand in hand with growth. Economic sustainability is a broad collection of decision-making principles and corporate practices.
When it comes to environmental impact, the truth regarding the damage caused by the global business community is harsh. They are one of the worst contributors to the abuse of natural resources and carbon emissions. By not prioritizing environmental sustainability, businesses around the world are contributing to the negative environmental impact.
Generally speaking, businesses which make use of the cheapest manufacturing technology have the worst environmental impact. One example of this is fast fashion[1] and single-use plastic. This is due to the fact that increasing costs to the environment do not result in higher pricing for consumers. This is understandable given that companies are rarely required to cover the full cost of the environmental damage their operations generate.
What are the benefits of economic sustainability?
The benefits of economic sustainability are numerous. They are not only beneficial for the planet but they can also help the business increase their revenue and stay profitable for the long term. There are many reasons why a sustainable economy is important, from corporate interests to idealistic environmentalism, here are some of its benefits:
- The sustainability of the global economy: Since the planet’s natural resources are finite, the reliance on unsustainable methods must come to an end. Any commercial enterprise that wants to last the long haul needs to invest in new resources and develop new procedures of production.
- The preservation of human life: The exploitation of fossil fuels has exacerbated the catastrophic situation facing Earth and human habitation. Humans have the chance to protect the earth for future generations by making efforts to reduce energy usage and change how businesses operate.
- Innovative breakthroughs: Innovation and discovery have historically come from the natural world. Therefore, the chance to discover novel substances and processes that can form the basis of new goods or other economic advantages is threatened by the ongoing destruction of the natural environment.
Examples of economic sustainability in practice
Fortunately, there are many real-life examples of economic sustainability practices emerging globally. Businesses and governmental organizations in some situations are enhancing their sustainability procedures to lower their carbon footprint. While this is going on, innovative businesses are producing goods or technology that helps the environment in one way or another.
Circular manufacturing at Schneider Electric’s Hyderabad plant
Schneider Electric’s Hyderabad facility has been recognized as a “Sustainability Lighthouse” by the World Economic Forum for its exemplary circular economy practices. Over four years, the plant achieved significant reductions: 59% in energy consumption, 57% in water usage, and 61% in CO₂ emissions, while improving waste optimization by 64%. These accomplishments were driven by digitized operations and smart factory initiatives, showcasing the tangible benefits of integrating sustainability into core manufacturing processes.
This example underscores the practical application of economic sustainability practices, highlighting how companies can achieve substantial environmental benefits while also realizing cost savings and operational efficiencies.
Importance of promoting economic sustainability globally
- Encourages long-term growth by aligning business goals with environmental responsibility
- Drives innovation through sustainable technologies and digital transformation
- Reduces operational costs by minimizing energy, water, and material waste
- Strengthens global supply chains by promoting resource efficiency and resilience
- Supports inclusive development by creating green jobs and upskilling workers
- Builds stakeholder trust through transparent and measurable sustainability goals
Schneider Electric: Inspiring sustainable growth
Sustainability and Schneider Electric go hand in hand. It has been and will remain the foundation of everything we do. In just 15 years, we’ve helped our clients reduce their carbon footprint by 120 million tonnes while also increasing global energy access by around 30 million. At Schneider Electric we are fully committed to ensuring that our clients are making the most out of their sustainability initiatives. We have set out our own Schneider Electric pledge, which can be seen in our Climate Commitments page.
