Despite the significant implications and measurable financial impacts of sustainability-related risks and opportunities, in many companies, sustainability often has weak links to the corporate financial, risk and strategy agendas. Companies must identify, assess and respond to the strategic and operational risks and opportunities presented by this changing business environment. Those that do not may find themselves losing ground in an increasingly competitive global marketplace.
Unlock Growth By Integrating Sustainability, a new AFP whitepaper produced in collaboration with Marsh & McLennan and Greenbiz, reveals three key actions for both sustainability leaders and risk and finance leaders to help companies make progress: integrate sustainability into strategic planning and enterprise risk management (ERM) planning processes, embed sustainability into financial modeling and risk assessment processes and create a common set of terminology.
“Corporate sustainability and social responsibility are no longer just things that sound good, but rather are taking front and center in corporate strategy and risk management,” said Craig Martin, AFP’s director of executive programs. “The forces of a changing physical environment present businesses with a wide array of strategic and operational risks, including supply-chain disruptions caused by decreased availability of key resources, the loss of customers or vendors and changing policy and regulatory regimes aimed at reducing the risk of climate change.”
It is clear that corporate sustainability approaches must move from “nice to have” efforts to promote the company and create employee engagement to a means to drive growth, manage risks to corporate earnings, and engage with financial markets. Companies that can effectively identify, assess, respond to, and manage the strategic and operational risks and opportunities presented by the changing business environment will be best positioned for long-term growth.
Download Unlock Growth By Integrating Sustainability here.