Sticks and Stones…but Sustainability Risk?

"You generally hear that what a man doesn't know doesn't hurt him, but in business what a man doesn't know does hurt." -Gerald Brenan

With countless examples making headlines every day, there is less and less debate over the benefits of integrating sustainability concepts into business. Largely driven by cost savings opportunities or risk mitigation, the business world is gradually making the ‘sustainability shift’. Simultaneously, universally around the world and across most industries, business leaders recognize the bottom line as the primarily measure of business success. The survival of a company is ultimately determined by whether there is a red or black number at the bottom of the page.   For each organization, the factors that determine the size and color of this bottom line number may vary. However, there is a common and growing factor creeping into the calculation.

According to Ernst & Young’s 2010 Business Risk Report, corporate social responsibility and the need for social acceptance both appeared on the top ten risks facing businesses. "Regarding corporate social responsibility or "radical greening", the report finds that in order to maintain the corporate image and reduce environmental impact, companies must take proactive measures, including more complex decisions regarding capital spending, production procedures, and installed technologies." ~ Environmental Leader

While many organizations falsely subscribe to the belief that business sustainability is only for larger organizations, there is the recognition that risk doesn't discriminate. To unprepared organizations, the business risks of carbon, water, and climate change disclosure takes many forms:

•    Potential increase in operating cost
•    Potential increase in supply costs
•    Potential disruptions to supply or loss of supplier relationships
•    Potential loss of revenue or market share
•    Potential to business reputation
•    Potential inability to secure investment dollars or capital

Water, carbon, and energy management is becoming a critical sustainable business strategy to address internal and external risk.   As business sustainability consultants, we stress the value in creating an overarching business case for sustainability as an incentive for continuous engagement and implementation.   By determining the criteria that will move your company along the business sustainability continuum, organizations have a clear map toward success.