Sustainability and Risk Management

By focusing on sustainability, a company can anticipate and deal with potential problems before they become serious liabilities. The ability to anticipate and manage such risks is invariably rewarded by investors, customers, and employees. Conversely, companies that do not manage risks have seen their value (stock price) plummet. Indeed, the risk reduction and risk management benefits alone constitute a convincing business case for pursuing sustainable development. 

The benefits to implementing sustainability practices include improved operational efficiency, increased sales growth, reduction of EHS risks, enhanced corporate/ brand reputation, and employee retention and talent attraction. Opportunities arise from new sustainable product innovation that allows access to new markets and provides a competitive advantage. 

One example of this type of product innovation is the 3M Novec 1230 Fire Protection Fluid that was developed using a balanced lifecycle approach. Until the early 1990s, halon was used for critical fire protection applications (e.g., communications and electronic equipment). With the production of halons banned because of high ozone depletion potential and most of the halon replacement 

The implementation of our EHS Management System has required each facility, business unit, and subsidiary to understand and address their EHS issues through an EHS planning process. This process, when integrated into the business strategic planning process, provides better management of business EHS risks and identifies new business opportunities. 

A focus on sustainability brings undeniable benefits for companies, but it also presents risks and challenges that companies must manage if they hope to be successful. 

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