Exploring Sustainability Risk Management

Starting a new venture or expanding on current company operations often requires external financing. As credit remains tight and the economy continues to be in a state of uncertainty, business sustainability may appear to be the last thing on the mind of executives. However, current and future market forces are adding a new dynamic to business evaluation.

In, Why Investors Should Consider Sustainability Risk Management, author Daniel Goleman explains the new risks businesses are facing. While regulatory and legislative risks have been on the radar for a long time, the business world is beginning to realize the emerging threats to business reputation.

With the dramatic increase in global eco awareness, there has been a significant shift in the expectations placed business. Consumers are now on the forefront and are demanding that a company’s actions speak louder than words. As a result, sustainable business reputations are now dramatically affecting profitability and access to capital.

As a sustainability consultant, I advise clients of the value of incorporating sustainability concepts into their business core values. Now that financial institutions are considering sustainability risk as a business evaluation criteria, more companies may seek to incorporate demonstrated sustainable actions into their daily business processes.

A strong reputation is a critical component of every business, but it is becoming increasingly important in risk management. Companies need to be able to demonstrate their business sustainability values through specific visible actions. At Taiga Company, our sustainability consulting works directly with clients to create value ties to a sustainable business reputation.