Sustainability Presents several Difficulties

As an example, in the field of energy generation, where the emphasis has been on finding new deposits
to keep up with the depletion of existing reserves, the push for sustainability can be seen. A number of
electricity companies, for example, are now stating publicly their goals for generating energy from
renewable sources such as wind, hydroelectricity, and solar power.

Companies, on the other hand, often find the transition to sustainable production to be a difficult
process. By making decisions based on longer time horizons, it becomes easier to justify some of the
higher upfront investments in efficiency and renewable energy sources. For the time being, however,
investors have had to adjust their expectations for returns because a company that is committed to the
sustainable development of resources may have less impressive earnings results in the short term.

Many businesses have been chastised for taking advantage of cost-cutting measures such as offshoring
production in order to obtain lower-cost labor. Despite the fact that this practice is beneficial to the
bottom line, it frequently comes at the expense of worker safety and security. One of the most dramatic
examples of how offshoring can go wrong was the 2013 collapse of the Savar factory in Bangladesh,
which resulted in the deaths of more than 1,100 people. Other methods of cost-cutting can be
detrimental to long-term sustainability, such as: The waste generated by a factory that discharges into a
nearby body of water in an effort to save money on immediate disposal expenses can cause costly and
significant long-term environmental damage.

Numerous businesses, typically retailers and restaurants, that are particularly sensitive to consumer
backlash have announced sustainability plans to reduce carbon footprints, packaging waste, and the
suffering of animals in their operations.

Some investors have become wary of sustainable investments as a result, at least until companies
become more transparent about their financial and business practices.