Read the notes, then try the practice. It adapts as you go.When you're ready.
Session Length
~17 min
Adaptive Checks
15 questions
Transfer Probes
8
Sustainable business refers to the practice of operating enterprises in ways that meet the needs of the present without compromising the ability of future generations to meet their own needs. It integrates environmental stewardship, social responsibility, and economic viability into core business strategy rather than treating them as peripheral concerns. Companies pursuing sustainability seek to create long-term value for all stakeholders, including shareholders, employees, customers, communities, and the natural environment, by managing their environmental footprint, ensuring fair labor practices, maintaining ethical governance, and developing products and services that contribute positively to society.
The modern sustainable business movement has evolved from early corporate social responsibility (CSR) efforts into a comprehensive strategic framework. The concept of the triple bottom line, coined by John Elkington in 1994, challenged businesses to measure success not only by profit but also by their impact on people and the planet. Today, Environmental, Social, and Governance (ESG) criteria have become central to investment decision-making, with trillions of dollars allocated according to ESG performance. Frameworks like the UN Sustainable Development Goals, the Global Reporting Initiative, and B Corp certification provide structures for companies to set targets, measure progress, and communicate their impact transparently.
As climate change, resource scarcity, and social inequality intensify, sustainable business practices are shifting from optional to essential. Circular economy models that eliminate waste, science-based emissions reduction targets, inclusive supply chain management, and stakeholder capitalism are reshaping industries from energy and agriculture to technology and finance. Companies that integrate sustainability into their operations often discover competitive advantages through innovation, risk reduction, brand loyalty, and access to capital. Far from being a constraint on profitability, sustainable business increasingly demonstrates that doing good and doing well can be mutually reinforcing.
One step at a time.
A business framework coined by John Elkington that evaluates corporate performance across three dimensions: profit (economic), people (social), and planet (environmental), rather than focusing solely on financial returns.
Example: Patagonia measures its success not only by revenue but also by its environmental impact (recycled materials, carbon neutrality) and social impact (fair labor, community grants).
A set of criteria used by investors and companies to evaluate corporate behavior and sustainability performance. Environmental covers emissions and resource use; Social addresses labor practices and community impact; Governance includes board diversity, ethics, and transparency.
Example: BlackRock, the world's largest asset manager, integrates ESG criteria into its investment decisions, engaging with companies that fail to disclose climate risks or lack board diversity.
An economic model that eliminates waste and pollution by designing products for durability, reuse, remanufacturing, and recycling, keeping materials in productive use for as long as possible rather than following a linear take-make-dispose pattern.
Example: IKEA's furniture take-back program resells and refurbishes used furniture, and the company designs products for disassembly so materials can be recovered and reused.
A private certification issued by the nonprofit B Lab to companies that meet rigorous standards of social and environmental performance, accountability, and transparency. B Corps legally commit to considering the impact of their decisions on all stakeholders.
Example: Ben & Jerry's became a certified B Corp, committing to fair trade sourcing, living wages, and climate justice initiatives while maintaining profitability as a subsidiary of Unilever.
An economic philosophy that holds that corporations should serve the interests of all stakeholders, including employees, customers, communities, suppliers, and the environment, not just shareholders. It contrasts with shareholder primacy.
Example: The Business Roundtable's 2019 statement, signed by 181 CEOs, redefined the purpose of a corporation to promote an economy that serves all stakeholders, not just those who own stock.
Greenhouse gas emission reduction targets that are aligned with the level of decarbonization required to keep global temperature increase below 1.5 degrees Celsius compared to pre-industrial levels, as validated by the Science Based Targets initiative.
Example: Microsoft set a science-based target to become carbon negative by 2030 and to remove all historical emissions by 2050, investing in carbon capture technology and renewable energy.
The practice of making misleading or unsubstantiated claims about the environmental benefits of a product, service, or company practice. Greenwashing erodes consumer trust and undermines legitimate sustainability efforts.
Example: A fast-fashion brand marketing a small 'eco collection' while the vast majority of its production relies on exploitative labor and disposable synthetic fabrics is engaging in greenwashing.
Managing the environmental, social, and ethical impacts across the entire value chain, from raw material extraction through manufacturing, logistics, use, and end-of-life, ensuring that suppliers meet responsible sourcing standards.
Example: Apple publishes an annual Supplier Responsibility Report and audits its global supply chain for labor violations, hazardous substances, and environmental compliance.
More terms are available in the glossary.
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