Business and Technology · Environmental and sustainability factors

Sustainability and Sustainable Development in Business

Updated 11 October 2026 · Fact-checked

Sustainability means meeting present needs without damaging the ability to keep operating, or the ability of others to meet their needs, in the future. The Brundtland definition of sustainable development says exactly this for future generations. To answer exam questions, define the term, then link it to long-term environmental and social impact on the organisation.

Understand Sustainability and Sustainable Development

Start with a simple idea. Resources are limited. If a business uses them up or damages the environment and society around it, it may not be able to carry on in future. Sustainability is about keeping something going over the long term.

Sustainable development applies this to society and the economy. The best-known definition comes from the Brundtland Commission (the UN's World Commission on Environment and Development, 1987): development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

The definition has two key parts. First, needs, especially the basic needs of the world's poor. Second, limits, because technology and social organisation limit what the environment can supply. Growth is not rejected. It must be balanced against the long term.

For an organisation, this means looking beyond this year's profit. A firm should consider its use of energy, water and raw materials, its waste and emissions, and how it treats employees, communities and suppliers. Sustainability is often described as having three strands: economic, environmental and social.

Why should organisations care? Reasons include: laws and regulation, pressure from customers, investors and employees, reputation and brand, lower costs through efficiency, access to finance, and the risk that scarce resources become costly or unavailable. Ignoring sustainability can bring fines, boycotts and lost trade. Acting on it can create competitive advantage.

Key formulas to remember

Brundtland definition of sustainable development: Development that meets the needs of the present without compromising the ability of future generations to meet their own needs; Learn this wording closely. Exams often ask you to identify or apply it.
Three strands of sustainability: Economic + Environmental + Social; Also called people, planet, profit. Use these as headings to structure answers.
Two key ideas inside Brundtland: Needs (especially of the world's poor) + Limits on the environment's capacity; Shows that sustainable development is about balance, not stopping growth.

How to solve Sustainability and Sustainable Development questions

Use this method for any sustainability question, whether it is a definition, a scenario or a multi-task item.

1Read the question and decide what is asked: a definition, a reason, a benefit, a cost or an application to a scenario.
2If a definition is needed, recall the Brundtland wording: present needs met without harming future generations.
3Spot the time frame. Long-term impact points to sustainability. Short-term profit only does not.
4Sort any scenario facts into economic, environmental and social effects.
5Link each effect to the organisation: cost, risk, reputation, regulation or stakeholder pressure.
6Eliminate options that confuse sustainability with simple profit maximisation or with legal compliance alone.
7Choose the answer that balances present and future needs, and check you answered exactly what was asked.

Quickest way: Future-needs test

When to use it: Use this for multiple choice questions when you have under a minute.

Ask: does this statement involve meeting today's needs while protecting the future?
If yes, it fits sustainable development. If it only mentions short-term profit or growth, reject it.
Check that the option does not say sustainability means stopping all development. That is wrong.
Pick the option that mentions both present needs and future generations or long-term impact.

Common mistakes in Sustainability and Sustainable Development

Treating sustainability as only about the environment.
The word is linked in the news to climate and pollution.
Fix: Remember the three strands: economic, environmental and social. Mention people and finances as well as planet.
Saying sustainable development means no economic growth.
Students read it as limiting use of resources.
Fix: Brundtland supports development, but in a way that does not harm future generations.
Muddling up the Brundtland definition by omitting future generations.
Students remember only 'meeting needs'.
Fix: Always include both halves: present needs and future generations' ability to meet theirs.
Confusing sustainability with corporate social responsibility (CSR).
Both deal with social and environmental topics.
Fix: Sustainability stresses long-term survival and resource use. CSR is about an organisation's responsibilities to society. They overlap but are not identical.
Giving only the cost side, such as the expense of going green.
Students think from a short-term accounting view.
Fix: Also give benefits: reputation, efficiency savings, lower regulatory risk and better access to customers and investors.
Assuming sustainability only matters for large companies.
Examples in textbooks are often multinationals.
Fix: State that organisations of any size, including public sector and not-for-profit bodies, can be affected.

Worked examples

Example 1

Which of the following best matches the Brundtland definition of sustainable development? A) Maximising shareholder profit each year. B) Development that meets present needs without compromising the ability of future generations to meet their own needs. C) Stopping all use of natural resources. D) Complying with all current environmental laws.

Show the solution

Recall the definition: present needs are met, and future generations' ability to meet theirs is protected.
Option A focuses on short-term profit, so it does not fit.
Option C is too extreme. Brundtland accepts development and use of resources within limits.
Option D is about legal compliance, which is not the definition.
Option B matches the wording.

Answer: B

Example 2

A mining company plans to expand. It will create jobs in a poor region but will pollute a river that local farmers use. Explain why the board should consider sustainability before deciding.

Show the solution

Define the issue: sustainability means considering long-term effects, not just current profit.
Social: jobs meet current needs, but farmers could lose their water and livelihoods, harming future needs.
Environmental: river pollution may be hard to reverse and affects future generations.
Economic: fines, clean-up costs, lawsuits or loss of operating licence could reduce future profit.
Stakeholders and reputation: communities, investors and regulators may object, damaging the brand and access to finance.
Conclude: the board should weigh short-term gains against long-term harm and consider ways to reduce pollution.

Answer: The board should consider sustainability because the expansion helps present needs through jobs but threatens future needs through river pollution. That could create financial, legal and reputational risks that harm the company's long-term survival.

Exam tips

Learn the Brundtland definition word for word. It is an easy mark in objective tests.
In scenario questions, label effects as economic, environmental or social to find the right option quickly.
Watch for options that say sustainability means stopping growth or only following the law. These are usually distractors.
For multiple response questions, select exactly the number stated and pick options that show long-term thinking.
Link sustainability to the organisation's own interests, such as risk, cost, reputation and stakeholder pressure, not only to ethics.

Practice questions from Environmental and sustainability factors

Sustainability and Sustainable Development in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Sustainability and Sustainable Development: frequently asked questions

What is sustainability in business?

It means running an organisation so that it can continue over the long term without exhausting resources or harming society and the environment. It covers economic, environmental and social impact. Businesses use it to manage risk and build trust.

What is the Brundtland definition of sustainable development?

It is development that meets the needs of the present without compromising the ability of future generations to meet their own needs. It comes from the 1987 report of the UN's World Commission on Environment and Development. It is the most widely quoted definition.

Why is sustainability important for organisations?

It helps organisations manage legal, resource and reputation risks. It can cut costs, attract customers, investors and staff, and protect long-term survival. Stakeholders increasingly expect it.

Is sustainability the same as sustainable development?

They are closely linked but not identical. Sustainability is the broad idea of keeping something going over time. Sustainable development applies that idea to growth and progress for society and the economy.