With increasing volatility, where everything from natural resources to supply chains to political realities to the global economy can be turned topsy-turvy in relatively short order, “sustainability” takes on new, poignant meaning. It has to do with aligning economic, environmental and social interests, of course.
But increasingly, it is taking on even more strategic importance, linked to reducing supply-chain risk and ensuring business continuity during disruptions, the right to operate in resource-stressed areas, reliable and cost-efficient energy supplies, and brand value and reputation.
In other words, the things upon which companies sink or swim.
Ours is a world in which a flood in Thailand can cut off global supplies of computer disk drives for the better part of a year; where a record-low Mississippi River can choke the flow of commerce; where an unprecedented hurricane (or “superstorm”) can upend one of the world’s financial centers for weeks.
In that context, how should a company view climate change, renewable energy, and resource efficiency? How should its shareholders view risk and resilience as it relates to the surety of their investments? And how should communities assess the responsibility of companies within their regions, in terms of the fair appropriation of local resources when they become scarce?