What Is Sustainability?
Sustainability focuses on meeting the needs of the present without compromising the ability of future generations to meet their needs. The concept of sustainability is composed of three pillars: economic, environmental, and social—also known informally as profits, planet, and people. Increasingly, companies are making public commitments to sustainability through actions like reducing waste, investing in renewable energy, and supporting organizations that work toward a more sustainable future.
KEY TAKEAWAYS
Sustainability focuses on meeting the needs of the present without compromising the ability of future generations to meet their needs.
Investors can be wary of companies that commit to sustainability. Although the optics can be beneficial to share price, investors worry about companies being transparent with their earnings results.
Big brands often make pledges to sustainability, but it often takes a long time to achieve sustainability goals.