Competitive advantages and risk management: capitalizing on the economic benefits of sustainability

Climate change and ecological degradation are two of the many pressing global issues that make sustainability pertinent to all stakeholders, including shareholders. Such issues are relevant to companies across all industries and sectors and are increasingly pressuring managers to consider how their organizations can utilize resources effectively while minimizing impact on the environment. It is critical to consider the underlying relationship between business and the environment: companies ultimately operate within the natural environment and are dependent upon it for the resources they use. A narrow focus on short-term economic interests without consideration for environmental impacts ignores the overarching system in which the planet supports business; without resources from which to make products there are no products to sell and, consequently, no profits.