Mitigating Climate Risk with a Sustainability Strategy

Climate Risk, Energy & Energy Utilities, Mining & Construction, Food & Beverage, Healthcare, Transportation, Financial Services, Sustainable product design, Inclusion and diversity, Ethical Governance, Privacy and Security, Customer service and transparency, Talent management, Waste and recycling, Energy and emissions, ESG Rankings, PG&E’s bankruptcy, CSE, the Centre for Sustainability and Excellence, Sustainability (ESG) Leadership Workshop, Workshop for C-Suite Executives, New York City, CMI, GRI, CEOs, CFO, COOs

CEOs are plagued with sustainability demands — noisy headlines which keep them awake at night.

CSE’s 2018 research Sustainability (ESG) Reporting Trends North America 2018 focuses on the influence of Sustainability on Financial Results. We break down the data by sector.  Taking an example from telecom, the most material issues which keep telecom CEOs on edge include:

  • Sustainable product design
  • Inclusion and diversity
  • Ethical Governance
  • Privacy and Security
  • Customer service and transparency
  • Talent management
  • Waste and recycling
  • Energy and emissions

What do these issues have in common?  They all manifest as long-term risk.

One of the most challenging long-term risks, particularly from investors’ viewpoint, is climate change.  With PG&E;s bankruptcy attributed to climate change by the Wall Street Journal, financial analysts are taking heed.  Climate change risks affect volatile markets, supply chains, the urban centers where companies place factories and draw employees, not to mention the hazards to shipping and distribution conduits.

As we posted in Step Aside Fortune 500: ESG Rankings Are Key to Corporate Growth, investment rankings are influenced by sustainability considerations. Fitch Ratings integrated scoring system includes ESG criteria. According to Fitch, about 3 percent of a rating’s derivation is directly attributed to an ESG issue, and 19 percent is influenced by at least one ESG concern.

Companies with sustainability reports and an actively implemented sustainability strategy can mitigate long-term risks such as climate change.  Sustainability can be a driver for stakeholder engagement, innovation and organizational change.

Are CEOs putting their resources in the right place?  CSE’s experience can help C-suite leaders answer this question.  CSE research highlights findings from many sectors including:

  • Energy & Energy Utilities
  • Mining & Construction
  • Food & Beverage
  • Healthcare
  • Transportation
  • Financial Services

There is a link between Sustainability Reporting and Financial Performance at the corporate level.  No longer is financial performance based solely on quarterly returns.  CEOs, CFOs, COOs, and management at all levels must be alert to long-term sustainability on near-term decision making.

Want to learn more about how you can leverage your sustainability efforts to mitigate long-term risk?  Attend the Centre for Sustainability and Excellence (CSE) Sustainability (ESG) Leadership Training Workshop for C-Suite Executives, in NYC on Monday September 30th – Tuesday October 1st, 2019.  CSE specializes in global sustainability consulting, research and training. Clients include governments, NGOs  and Fortune 500 companies. CSE is accredited by CMI and is a GRI organizational stakeholder.

 

 

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