You might know what the EU taxonomy is, but if you’ve read the targets and the requirements, you might be wondering to yourself ‘what is a sustainable business?’ If you’re unsure what it means, don’t worry - we’ve got you covered!
The EU Taxonomy Explained - What does it mean to be sustainable?
As the EU Taxonomy explained, businesses that are seen as being sustainable are those that make efforts towards the EU’s initiative to protect the environment and reach net-zero carbon emissions. Most business opportunities that are sustainable are typically small start-up companies that are making use of innovative technologies and services that allow the business to operate sustainably.
In particular, for a business to be classed as sustainable it is required to contribute to one of several environmental goals such as mitigate climate change or protect ecosystems, while also not conflicting against any of those targets. Once the conditions are met as the EU taxonomy explained, then it is a sustainable business.
Jumping on the trend of being sustainable does not automatically make a business ‘sustainable. A sustainable business model is not an easy way to earn large profits (at least at first) or generate success overnight. As the EU taxonomy explained, it involves a commitment to making changes to the business that is long-term, continual, well defined, and positive. In other words, sustainable businesses need to be open-minded and flexible, and not solely focused on profits.
The EU Taxonomy Explained - Why should businesses strive for sustainability?
The sustainable model is both ethical and wise in the business model. An ethical business is leaner and more efficient, more cost-efficient, and more productive. What’s more it can be all of these things without causing irreparable damage to the environment.
When you begin to wonder whether a sustainable business has the power to develop sustainable practices rather than damaging others, do not forget about all the potential business opportunities that are available. When you discover that you have a sustainable business you will have the choice to behave, be as I've described it, ethical, and a positive influence for the health of your community and our world.
The EU Taxonomy Explained - Why is the Taxonomy needed?
When it comes to something as important as climate change and the environment, businesses cannot just be bystanders. Again as the EU Taxonomy explained, businesses need to play an active part in mitigating climate change, they need to be innovative, and be willing to change their ways when it is necessary.
Just because it is not wholly focused on profit, that doesn’t mean that a sustainable enterprise has to be an all-encompassing investment though. Your business does still need to make a profit and continue doing whatever it needs to do to get the job done, otherwise it is not contributing to the economy and will cease to operate - making the business unsustainable from another level. However, when you are a business, one of the steps that will serve a positive impact on the environment, community, society, and economy is to be more conscious of your impact on the community and the environment. There is a risk that your business can be damaging to the environment.
As we’ve mentioned above - and as the EU Taxonomy explained too - damaging the environment is something that sustainable businesses try to do as little as possible in the pursuit of their business success, but there does still need to be profitability and success..
In conclusion
There will always be ethical and moral corporations and businesses, however, there also will be businesses whose strategies and practices will cause great harm to the human way of life. Sustainability is a business model that seeks to offset that harm, and undo the mistakes of the past as much as possible..
When we donate our time or money through charity, we’re voluntarily taking a hit to our own wallet or leisure time to help those that need it. In a way, sustainability can be seen as a business' way of being charitable to the planet, now that it’s clear that our environment is in need of some help. Just like the work we do for charity in our lives is of high benefit for our communities and for our society, sustainable business does the same for the planet on which we live.