Sustainable Business Strategies: Investors

Investors are one of the biggest, “below the radar”, drivers of sustainable business for the future, and are making slow and steady progress in sustainable and responsible investments.

The lessons for corporate sustainability champions are:

  1. While it may not seem that investors care about sustainability, their interest is steadily growing and will become very visible in a few years.
  2. The cost savings for companies from sustainability and rising expectations of limited partners are driving the interest in these investments.
  3. This trend will accelerate when the metrics for monitoring investments improve, which seems to be taking place now.  Nearly half of all shareholder resolutions typically have to do with sustainability.

Sustainable Business Strategies: Risk Management

2012 was the year in which risk management strategies to cope with sustainability mega forces became more sophisticated.

risk management

The lessons for corporate sustainability champions are:

  • Risk management for climate change and other environmental threats must become part of enterprise risk management.  If it isn’t, then you’re really in the minority.
    You need to make it a priority within your company.
  • Focus on business resilience, not just to extreme weather events that disrupt supply chains and operations, but also to the threat of resource constraints.

Business Strategies: Sustainability Megatrends

As sustainable business strategies get revised for 2013, it is time to take an informed look at the sustainability megatrends highlighted in 2012.

The clear message of 2012 is that sustainability mega forces are accelerating in strength, which makes it a corporate strategy challenge and opportunity. One of the best reports on these megatrends describes a world in 2030 that is radically different from today: greater individual empowerment, shift in power to a multipolar world, much greater urbanization and migrations, and a demand-supply gap for food, water and energy that creates a dangerous nexus.

Accelerating Sustainability in Business

Call me optimistic, but the sea change in corporate sustainability seems to be gaining momentum.

Hurricane Sandy is the prime example of an event that drew attention to the perils of climate change.
But there are other, less obvious events of 2012 that are driving this sea change.

The Rio+20 conference in June this year, despite its modest achievements at the government level, had many important developments. For the first time, it became obvious that the real driver of a more sustainable world is going to be business. The spotlight is now on corporations to drive the sea change, which is great for business.