Chapter 29 – Environmental Sustainability in the Private Sector
29.1 Historical Context & the Evolution of Sustainability Practices in Business
The concept of environmental sustainability in business has evolved significantly over time.
In the early 20th century, many businesses operated without considering their environmental impact. Factories often released pollutants into the air and water, and there were few regulations to control this. As industrialization grew, so did the negative effects on the environment, leading to serious problems such as air and water pollution.
What Is Environmental Degradation?
Environmental degradation refers to the decline in the quality of the natural environment caused by human activity. It happens when resources like air, water, and soil are damaged or depleted faster than they can recover. Examples include polluted rivers from factory waste, smog from burning coal, or deforestation that destroys wildlife habitats.
In the early 20th century, industrial growth often came at the expense of the environment, with little thought given to long-term consequences. Understanding environmental degradation is important because it highlights why sustainability practices are necessary to prevent further damage and protect resources for future generations.
In the 1960s and 1970s, awareness of environmental issues began to increase. The publication of Rachel Carson’s book Silent Spring in 1962 highlighted the dangers of pesticides, sparking public concern about environmental health. This period also saw the first Earth Day in 1970, which aimed to raise awareness about environmental protection. As a result, governments started to introduce laws to reduce pollution and protect natural resources. The U.S. Environmental Protection Agency (EPA) was established in 1970 under President Richard Nixon to enforce these laws.
The U.S. Environmental Protection Agency (EPA)
The U.S. Environmental Protection Agency (EPA) was created in 1970 to enforce laws that protect the environment and public health. The agency sets and enforces standards for clean air, safe drinking water, and the management of hazardous waste. It also oversees regulations that limit pollutants released by factories, vehicles, and other sources.
Protecting the environment is not only about preserving natural resources. It is also about protecting people. Polluted air can cause asthma and heart disease, while contaminated water can spread illness. By reducing pollution and promoting cleaner practices, the EPA helps safeguard both ecosystems and human health.
In the 1980s, the United Nations commissioned a study on the long-term impacts of environmental degradation on economic and social development. The Brundtland Commission’s 1987 report, “Our Common Future,” introduced the concept of sustainable development, emphasizing the integration of economic, social, and environmental considerations. The commission’s primary goal was to address the accelerating deterioration of the human environment and natural resources, and the consequences of that deterioration for economic and social development.
Their plan laid the groundwork for how businesses and other organizations perceived their responsibilities beyond mere profit generation, integrating broader social and environmental impacts into their strategic considerations. The Brundtland Commission Report, introduced the concept of sustainable development, defined as “development that meets the needs of the present without compromising the ability of future generations to meet their own needs.”
Businesses started to recognize the importance of sustainability. Companies began adopting practices to reduce waste and pollution. The idea of corporate social responsibility became popular, where businesses took responsibility for their impact on society and the environment. Many companies started to report on their environmental performance and set goals to improve it.
In the 21st century, the focus on environmental sustainability has become even more critical. Climate change, resource depletion, and pollution are major global challenges. Businesses are now expected to play a significant role in addressing these issues. This includes reducing greenhouse gas emissions, conserving water, and using sustainable materials. Many companies are also investing in clean energy technologies and developing products that are easier to recycle.
Today, being environmentally sustainable is not just about compliance with regulations; it is also about innovation and leadership. Companies that lead in sustainability often gain a competitive advantage. Consumers and investors are increasingly favoring businesses that are committed to protecting the environment. As a result, sustainability has become an integral part of business strategy, shaping how companies operate and grow in the modern world.
Reference
Gleeson-White, Jane. 2015. Six Capitals, or Can Accountants Save the Planet? Rethinking Capitalism for the Twenty-First Century. WW Norton & Company.
