A Risk Issue
Corporate Sustainability: a business approach that creates long-term shareholder value by embracing opportunities and managing risks deriving from economic, environmental and social developments
Corporate Sustainability leaders achieve long-term shareholder value by gearing strategies and management to harness the market’s potential for sustainability products and services. At the same time there is a need to successfully reduce and avoid sustainability costs and risks within each industry.
Sustainability factors should be considered by managers like any other business risk issue. These factors are expected to have a substantial impact on corporate management.
An Enterprise Sustainability Risk Management (ESRM) model fulfils the requirements to consider these factors.* In the model the triple bottom line (TBL) agenda is incorporated into the companies’ sustainability management.
Enterprise Sustainability Risk Management deals with the environmental, social, and ecological risks as well as the strategic, economic, operational, and threat risks of companies.
The best Corporate Sustainability strategies and management approaches require the consideration of all corporate risks in both a holistic and systematic way.
Organisations need a strong sustainability management framework to effectively manage economic, environmental and social risks to:
- achieve their corporate sustainability objectives
- meet their stakeholders’ demands
- turn risks into potential corporate advantages
