The three areas of corporate sustainability

Companies bear their responsibility for sustainable development through corporate sustainability. Corporate sustainability encompasses three main areas: environmental, social, and economic sustainability and good governance (also known as ESG):

• Environmental sustainability addresses the impacts of business operations on the natural environment. This area covers issues such as the sustainable use of natural resources, reducing carbon emissions, conserving water, managing waste responsibly, using renewable energy, and protecting biodiversity.
• Social sustainability addresses impacts of business operations on people and communities. Its foundation is formed by corporate human rights responsibility, whose themes are determined by international human rights norms. The area includes, for instance, health and safety issues, labour rights, working conditions, equality and non-discrimination, and diversity and inclusion.
• Economic sustainability and good governance concerns sustainable business practices that contribute to long-term success and addresses companies’ economic impacts on communities and society. It includes, for instance, efficient and ethical use of financial resources, ethical leadership, anti-corruption measures, responsible tax practices, and compliance with international sanctions.

The three pillars are equally important in sustainability work, and the issues within the three areas of sustainability are interrelated. For example, environmental degradation also has negative impacts on people’s health and other human rights issues as well as livelihoods. How a company manages its finances and operations affects the environment and people.