Risk Management and Sustainability

Risk management has not typically been in the vocabulary of most companies when it comes to sustainability planning. The last few years have forced businesses to re-evaluate their sustainability strategies to include resilience. Extreme weather has made a major economic impact across the world, and wreaked havoc on supply chains.  It is becoming all too obvious that risk management plays a large and necessary role in sustainability planning.

The article written by Joel Makower, The State of Green Business: Coping with Mother Nature’s Fury raises important questions: “At what point will climate, extreme weather and resource constraints be similarly seen as a potent threat that requires changes to the design and operation of our businesses and supply chains? What will be the dramatic event(s) that provide the tipping point? How much disruption and inconvenience will the public be willing to tolerate?”

These questions ignite the argument of how sustainability is viewed in organizations, whether it is only environmental responsibility, or rather is it also a vital continuity strategy that supports the endurance and resiliency of business in a turbulent and changing world.

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