Will We Survive the Sustainability Challenge?

The business world has always been in a state of constant flux due to the introduction of innovative technologies, the dynamic nature of the market, the global nature of the business and legal frameworks. Agile businesses who have been able to adapt themselves to these challenges have not only been able to survive but thrive and there are numerous examples of the same. 

The latest challenge that businesses can no longer ignore in an increasingly eco-conscious universe is incorporating environmental factors into the business landscape. It is extremely critical to understand the environmental factors which shape the industry. Without understanding the environmental implications of their business operations, they are highly likely to face regulatory hurdles very soon in the future which will result in unforeseen challenges. Can small and medium sized businesses survive the sustainability challenge? What will be the impact of inability to understand the importance of reducing carbon footprint or adapt their manufacturing processes to ensure compliance in the future.

To understand the same, we need to start with the basics. How did we come to this?

Infinite growth on a finite planet.

The world population reached one billion in 1800. These numbers slowly and steadily increased in the next 150 years to reach 2.5 billion in 1950. Since then, the human population has increased incredibly and reached an unprecedented level of 6.5 billion by 2005. We crossed a historic date in human history on November 15, 2022, with earth’s population reaching 8 billion mark. 

The latest projections by the U.N. shows that the global population may reach 8.5 billion in 2030 and 9.7 billion in 2050. It is projected to peak at around 10.4 billion during the 2080s. What are the reasons for this tremendous growth in population and what are the counter measures which are required at this moment is a discussion we will keep for another day. 

This unprecedented growth in population has resulted in utilization of natural resources 1.7 times faster than our planet’s biocapacity to regenerate.  This has led to:

1. Lack of clean drinking water, population has increased multiple folds but the amount of water available has remained steady or even depleted.
2. Increase in food needs leading to competition of arable land and increase in agriculture which again impacts water tables.
3. Increase in demand for goods resulting in industrialization causing depletion of natural resources and pollution of water resources.
4. Earth Overshoot and overconsumption: Individuals consuming more resources than they need and much faster than earth can replenish. The natural process of renewal of resources is not able to match the speed of consumption.
5. Deforestation: Large-scale deforestation to seek new areas for resource extraction and infrastructure.
6. Income inequality: Overpopulation has led to inadequate housing, healthcare, and education.  Lesser job availability leads to higher unemployment and higher poverty rates increasing social inequalities within communities.
7. Increased pollution: Due to energy consumption and use of fossil fuels. 
8. Rapid urbanization: Increase in population leading to rapid urbanization and expansion of informal settlements. These in turn are responsible for inadequate waste management, polluting water bodies and exacerbating health risks.

Some interesting facts:

1. Technosphere: We have created more than 1,70,000 different materials (glass, ceramics, cement, plastics) against just 5000 natural minerals.
2. Food insecurity: While there is overconsumption on some parts of planet, we are staring at food catastrophe on the other side of the planet. Every night around 828 million people go to bed hungry, according to the World Food Program (WFP), a United Nations organization focusing on providing food assistance globally. Since 2019, the number of people facing significant food insecurity has increased from 135 million to 345 million, according to WFP.
3. Mobile Phones: There are more mobile phones than people in the world. According to the International Telecommunication Union (ITU), there were more than 8.58 billion mobile subscriptions in use worldwide in 2022, compared to a global population of 7.95 billion halfway through the year.
4. Vehicles: As of today, there are around 1.475 billion vehicles on Earth for 8 billion humans.  There is a car for every 5.492 humans or 182 cars per thousand humans.
5. Water Scarcity: According to a report by WWF, about 1.1 billion people face water shortages worldwide. At least 2.7 billion people experience water shortage at least one month a year. From the report, water shortage affects 27% of the world’s population.

The numbers are very overwhelming, and businesses need some serious introspection on how we can counter the challenges that we are facing today. Can we survive the sustainability challenge?