History and Implications of Sustainability to Business and Society

Climate change costs the world $60 million per hour, and new rules, such as the EU’s Corporate Sustainability Reporting Directive, require businesses to be more transparent than ever before. The race to limit global warming to 1.5°C and transitioning to a low-carbon economy is on. This foundational chapter provides essential historical context by illustrating how sustainability has progressed from Rachel Carson’s seminal environmental awakening in 1962 to the planetary boundary frameworks of today. It demonstrates how environmental awareness has evolved from a minority concern to one of the most significant strategic priorities facing us all. Salient pedagogical features include thorough frameworks for understanding the shift from shareholder primacy to stakeholder capitalism, as well as real-world examples from companies like Google and Walmart that demonstrate how to gain a long-term, sustainable competitive advantage. This chapter provides numerous examples of organisations that have seized the sustainability opportunity. The speed of development is illustrated in the Citadel’s $8 billion climate intelligence Mini Case Study, which demonstrates how to swiftly convert a market opportunity and utilise weather forecast data to inform sustainability decision-making. This chapter presents the book’s methodical four-part structure, which is designed to provide leaders with valuable thoughts and tools for transforming and enhancing the performance of their organisations.