The theme of sustainability has transcended academic boundaries only in the last decade, assuming an increasingly central role in businesses and the common perception of consumers. Although it is a widely popular topic today, sometimes overused, the concept has been discussed for some time. The first official discussions addressing environmental rights and healthy, efficient production took place during the United Nations Conference on the Human Environment in 1972.
A clear definition of sustainable development was provided by the United Nations in the Brundtland Report, published in 1987 under the title "Our Common Future." According to the report, "sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs". The report highlights that, in a world plagued by widespread poverty and prone to ecological and other disasters, technology and social organization can become tools to create sustainable development methods, extending the right to access a dignified life for all.
In 1992 the Rio Earth Summit further solidified global attention on the need for an integrated and sustainable approach to development. Various agreements and documents were discussed and adopted, including the "Rio Declaration on Environment and Development" and "Agenda 21." These documents emphasize the importance of reconciling economic development with environmental protection and social well-being.
Additionally, a significant step in raising awareness of sustainability was taken with the adoption of the United Nations' Agenda 2030. The Sustainable Development Goals (SDGs), endorsed by 193 countries in 2015, consist of 17 objectives to be achieved by 2030, comprising 169 targets. These goals provide key global indicators to address common challenges such as climate change, poverty, disease, food security, decent work and more. The SDGs are aimed at governments, businesses, and citizens worldwide with the goal of fostering sustainable development across various aspects. Achieving success in this ambitious agenda requires collaboration among governments, international organizations, the private sector, and civil society.
Corporate Social Responsibility (CSR) aligns with sustainability and demands substantial commitment from companies that are progressively opting to recognize their influence on society and the environment. An illustration of how productivity aligns with the Agenda points can be seen in the Smart Industry, seamlessly fitting into Goal 9.5, which strives for the upgrade and modernization of industries. The Smart Industry represents a new vision of an intelligent industry, integrating technology, efficiency, sustainability, and sustainable development. This concept, based on technological progress, focuses on achieving intelligent production through the Internet of Things, Artificial Intelligence, and digitization.
Given the multifaceted character of corporate social responsibility and the range of policies adopted by companies, European regulations afford member states a degree of flexibility in enacting policies to embrace sustainability practices. The frequency and manner in which companies communicate their goals and accomplishments is heterogeneous across EU countries.
In the Italian context, there exist currently minimal legal obligations for divulging information concerning environmental impacts, health, safety, utilization of renewable energy resources, gas emissions, pollution, and other social factors. Italian No. 254/2016, transposing European Directive 2014/95/EU, imposes requirements for non-financial reporting and strives to monitor the commitment of states to sustainable development. This reporting is effectively mandatory for two entities:
- Public interest entities: organizations, institutions, or companies that wield a substantial role in the broader societal interest, boasting over five hundred employees surpassing at least one of the subsequent size thresholds at the conclusion of the balance sheet: a) total assets on the statement of financial position exceeding 20 million euros; b) total net sales and services revenues exceeding 40 million euros
- Parent companies: holdings, employing a workforce of more than five hundred and presenting a consolidated financial statement meeting at least one of the following criteria: a) total assets on the statement of financial position greater than 20 million euros; b) total net sales and services revenues exceeding 40 million euros
The Italian government has underscored the significance of sustainability within businesses. This is evident, for instance, in the Economy and Finance document, where indicators of well-being and sustainability are incorporated alongside traditional metrics like GDP, employment, and public debt.
A set of recent directives geared towards advancing sustainability is Green Public Procurement (GPP). These directives pertain to the public administration's acquisition of products and services with minimized environmental impact, endorsing recycled materials that are devoid of harmful substances and easily recyclable. These measures also extend to all companies serving as suppliers or potential suppliers to the public administration, especially in sectors like cleaning, catering, the paper and wood supply chain, plastics, and road maintenance. For example, in the province of Bolzano, asphalt is made with recycled tire rubber instead of noise barriers, adding value to waste and helping reduce the cost of disposing of materials that would otherwise be discarded.
However, there is divergence among companies in their interpretations of sustainability. Some view it as a constraint, responding only through adherence to voluntary standards, while others see it as an opportunity, leveraging it for competitive advantage and differentiation. The motivation to embrace sustainability may derive from a vision linked to environmental respect, business objectives, or a blend of both.
Sustainability demands a considerable investment of energy by the company, yet it brings forth advantages:
- Motivation and engagement of employees: they are prouder and more involved when working for a sustainable company with goals beyond economic objectives
- Enhancement of reputation and credibility: sustainable companies generally enjoy a more favorable image among the public
- Boost in sales and loyalty of stakeholders, especially consumers
- Better relations with the community
- Improved relations with the community
- Upturn in economic performance
- Utilizing waste as raw materials achieves a diminished environmental impact by making use of existing materials, thereby easing the burden of waste disposal
- Better relations with financiers who are increasingly attentive to the sustainable conduct of the companies in which they invest
The optimal solution is to seek a socio-economic synthesis, a "win-win" scenario where benefits are obtained on both the economic and social fronts. External pressures, such as public opinion and social movements, drive towards this convergence. To achieve an effective solution, it is necessary to balance economic and social objectives so that each sustainability project or initiative leads to improvements in both sectors.