The four pillars of sustainability (2024)

The term sustainability is used broadly to denote programs, initiatives and actions aimed at conserving a particular resource. But it actually refers to four different areas: human, social, economic and environmental – known as the four pillars of sustainability.

Human sustainability

Human sustainability aims to maintain and improve human capital in society. Investments in health and education systems, access to services, nutrition, knowledge and skills are all programs under the umbrella of human sustainability. Natural resources and available space are limited and it is necessary to balance continued growth with improvements in health and achieving economic well-being for all. In the business context, an organization will see itself as a member of society and promote corporate values ​​that respect human capital. Human sustainability focuses on the interests of everyone directly or indirectly involved in the manufacture of products or the provision of services or broader stakeholders (the human capital of the organization) (Benn et al., 2014). Societies around the world can be positively or negatively affected by business activities or affected by methods used to obtain raw materials. Human sustainability involves the development of skills and human capacity to support organizational functions and sustainability and promote the well-being of local communities and societies.

Social sustainability

Social sustainability aims to preserve social capital by investing and creating services that provide the framework for our society. The concept encompasses a broader view of the world in relation to communities, cultures and globalization. It means preserving future generations and recognizing that what we do can have an impact on others and on the world. Social sustainability focuses on maintaining and improving social quality with concepts such as cohesion, reciprocity and fairness and the importance of relationships between people. It can be encouraged and supported by laws, information and shared ideas about equality and rights. Social sustainability encompasses the idea of ​​sustainable development as defined by the United Nations Sustainable Development Goals. The principle of sustainable development concerns social and economic improvement that protects the environment and supports equality, and therefore the economy, society and ecological system are mutually dependent (Diesendorf, 2000).

Economic sustainability

Financial sustainability aims to keep capital intact. If social sustainability focuses on improving social equality, economic sustainability focuses on improving living standards. In a business context, it refers to the efficient use of assets to maintain the company's profitability over time. As stated by the UK Government (2000 Annual Report, January 2001):

“Maintaining a high and stable level of economic growth is one of the most important objectives of sustainable development. Giving up on economic growth is not an option. But sustainable development is more than just economic growth. The quality of growth is just as important as the quantity.”

Critics of this model recognize that a major gap in modern accounting practice is the failure to include the costs of land damage in market prices (Hawking, 2010). A more recent approach to economics recognizes the limited integration of the environmental and social components in this model. The new economy includes natural capital (ecological systems) and social capital (relationships between people) and challenges capital's mantra that sustainable growth is good and bigger is better when there is a risk of harming the ecological and human systems ( Benn et al., 2014).

Environmental sustainability

Environmental sustainability aims to improve human well-being through the protection of natural capital (e.g. land, air, water, minerals, etc.). Initiatives and programs are defined as environmentally sustainable if they ensure that the needs of the population are met without the risk of compromising the needs of future generations. Environmental sustainability, as described by Dunphy, Benveniste, Griffiths, and Sutton (2000), emphasizes how companies can achieve positive financial results without harming the environment in the short or long term. According to Dunphy et al. (2000), an environmentally sustainable company attempts to integrate all four pillars of sustainability, and to achieve this goal they must all be treated equally.

The principle of the four pillars of sustainability states that for full sustainability, problems must be solved in relation to all four pillars of sustainability and then sustained. While these may overlap in some cases, it is important to identify the specific type of green business to focus on as the four types have unique characteristics. Companies must make a strategic decision about this to effectively integrate the chosen approach into their policies and procedures.

Reflection

Think about how companies can integrate all four pillars of sustainability into their core activities.