On one account, sustainability "concerns the specification of a set of actions to be taken by present persons that will not diminish the prospects of future persons to enjoy levels of consumption, wealth, utility, or welfare comparable to those enjoyed by present persons." Sustainability interfaces with economics through the social and ecological consequences of economic activity.
Sustainability economics represents: "... a broad interpretation of ecological economics where environmental and ecological variables and issues are basic but part of a multidimensional perspective. Social, cultural, health-related and monetary/financial aspects have to be integrated into the analysis."
However, the concept of sustainability is much broader than the concepts of sustained yield of welfare, resources, or profit margins. At present, the average per capita consumption of people in the developing world is sustainable but population numbers are increasing and individuals are aspiring to high-consumption Western lifestyles. The developed world population is only increasing slightly but consumption levels are unsustainable. The challenge for sustainability is to curb and manage Western consumption while raising the standard of living of the developing world without increasing its resource use and environmental impact. This must be done by using strategies and technology that break the link between, on the one hand, economic growth and on the other, environmental damage and resource depletion.
Sustainability and a Green Economy
A recent UNEP report proposes a green economy defined as one that “improves human well-being and social equity, while significantly reducing environmental risks and ecological scarcities”: it "does not favor one political perspective over another but works to minimize excessive depletion of natural capital".
The report makes three key findings: “that greening not only generates increases in wealth, in particular a gain in ecological commons or natural capital, but also (over a period of six years) produces a higher rate of GDP growth”; that there is “an inextricable link between poverty eradication and better maintenance and conservation of the ecological commons, arising from the benefit flows from natural capital that are received directly by the poor”; "in the transition to a green economy, new jobs are created, which in time exceed the losses in “brown economy” jobs. However, there is a period of job losses in transition, which requires investment in re-skilling and re-educating the workforce”.
Treating the environment as an externality may generate short-term profit at the expense of sustainability. Business practices, on the other hand, integrate ecological concerns with social and economic ones (i.e., the triple bottom line). Growth that depletes ecosystem services is sometimes termed "uneconomic growth" as it leads to a decline in quality of life. Minimizing such growth can provide opportunities for local businesses. For example, industrial waste can be treated as an "economic resource in the wrong place". The benefits of waste reduction include savings from disposal costs, fewer environmental penalties, and reduced liability insurance. This may lead to increased market share due to an improved public image. Energy efficiency can also increase profits by reducing costs.
Sustainability as a Business Opportunity
The idea of sustainability as a business opportunity has led to the formation of organizations such as the Sustainability Consortium of the Society for Organizational Learning, the Sustainable Business Institute, and the World Council for Sustainable Development. Research focusing on progressive corporate leaders who have embedded sustainability into commercial strategy has yielded a leadership competency model for sustainability. The expansion of sustainable business opportunities can contribute to job creation through the introduction of green-collar workers.
From Wikipedia: http://en.wikipedia.org/wiki/Sustainability#Economic_dimension