Sustainability
Sustainability is meeting present needs without reducing the ability of future generations to meet theirs. In a corporate setting it means running a business within environmental and social limits, measured against evidence rather than intent.
The definition comes from the 1987 Brundtland report and covers three areas: environmental, social, and economic. Companies most often use the word for the environmental part, which includes greenhouse gas emissions, energy and water use, waste, and land use.
The word has lost precision through overuse, so regulators have replaced it with specific reporting duties. The EU's CSRD requires disclosure against the ESRS standards. California's SB 253 and SB 261 require emissions reporting and climate risk disclosure. The ISSB standards ask for the same information in the language of financial materiality. In each case the claim has to be supported by data that an auditor can trace back to a bill, a meter, or an invoice.
That is the practical meaning of sustainability for a reporting team: a number, a source, and a method that survives review. Vague commitments now carry legal risk under greenwashing rules, so the work is measurement first and communication second.
Frequently asked questions
What is sustainability? +
Sustainability is meeting present needs without reducing the ability of future generations to meet theirs. For a company it means operating within environmental and social limits and reporting the results with evidence.
What is the difference between sustainability and ESG? +
Sustainability describes the outcome a company is aiming for. ESG is the reporting framework investors and regulators use to assess environmental, social, and governance performance against that aim.
How do companies measure sustainability? +
Most start with a greenhouse gas inventory under the GHG Protocol, then add energy, water, waste, and social metrics required by the frameworks they report to, such as CSRD/ESRS, CDP, or the ISSB standards.
Related terms
ESG (Environmental, Social, Governance)
ESG stands for environmental, social, and governance: the three categories used to assess how a company manages risks and impacts outside its financial statements. Investors, customers, and regulators use ESG data to compare companies on emissions, labor practices, board oversight, and similar factors.
Sustainability Reporting
Sustainability reporting is the disclosure of an organization's environmental and social performance to stakeholders, including regulators, investors, customers, and employees. It covers GHG emissions, energy, water, waste, and social metrics, structured according to frameworks like CSRD/ESRS, CDP, GRI, and ISSB.
CSRD (Corporate Sustainability Reporting Directive)
The Corporate Sustainability Reporting Directive (CSRD) is the European Union's mandatory sustainability reporting law. It requires companies operating in the EU above certain thresholds to disclose environmental, social, and governance (ESG) information according to the European Sustainability Reporting Standards (ESRS), with third-party assurance.
Net Zero
Net zero means reducing greenhouse gas emissions as close to zero as possible, with any remaining residual emissions balanced by an equivalent amount of carbon removal from the atmosphere. The SBTi Corporate Net-Zero Standard requires at least 90–95% absolute emission reductions before carbon removals can be used.
Greenwashing
Greenwashing is the practice of making misleading or unsubstantiated claims about the environmental benefits of a product, service, or corporate practice. It ranges from vague language ('eco-friendly,' 'sustainable') without supporting evidence to selective disclosure that highlights positive actions while concealing negative impacts.
Materiality Assessment
A materiality assessment is a structured process for identifying and prioritizing the sustainability topics most relevant to an organization and its stakeholders. Under CSRD, it specifically refers to the double materiality assessment (DMA) that determines which ESRS topics require full disclosure.