1. What is Economic Sustainability?

Economic sustainability is one of the three pillars of sustainability. It is a practice of maintaining profitability of an organization while ensuring that they don’t negatively impact the environmental, social and financial parameters over time.

“An economy where everyone has access without worrying too much about whether supplies will run out soon enough and become unaffordable is a sustainable economy”.

It requires balancing economic growth with social and environmental goals to ensure that economic activities are both productive and sustainable over time. This led to a rethinking that our existing linear model isn’t sustainable and at a given point might extinct our resources. Hence, the new model of circular economy came into picture.
In this model, devising a less wasteful system and bringing in new innovation to fully revolutionize waste will help in building a sustainable business innovation model.

Importance of Economic Sustainability for businesses

In addition to driving social and environmental change, Economic sustainability looks at the long - term methods to sustain the resources and the business. It does not necessarily mean sacrificing profits or putting the growth of the company at the backseat. Instead, it has proved to be a crucial element as part of any successful strategy. These sustainability strategies are considered today as a short - term investment but they can lead to long- term benefits. A company with a high ESG rating can outperform the market in both medium and long term. Creating a green/sustainable business with a strong economic model can suffice to both the corporates as well the environmentalists. The benefits can be achieved by :

• Prioritizing low - impact economic development
• Devising less wasteful systems
• Switching to Renewable energy source