Sustainable business: the risk of doing nothing

Climate change poses several risks to your business. Doing nothing is far more costly.

We all know it. On the one hand, you want to contribute to limiting climate change, but on the other, you also have your day job. In addition, you have your day-to-day tasks, and you don’t really know where to start with sustainability. These are well-known reasons why companies are reluctant to change in favour of the climate, while it actually offers opportunities to stand out. Moreover, postponing these changes initially seems like a cost saving, but in the long run it leads to various risks and actually higher costs. No worries, you’ve come to the right place. In this article, we describe the possible risks and we are your guide as to how you can tackle them and make the most of the opportunities.

Transition Risks

So-called transition risks are risks in the sustainable transition for companies. The Dutch Central Bank [1] defines these risks as follows: 

Transition risks result from the process of adjustment towards a carbon neutral economy. These adjustments are driven by changes in climate related policy, disruptive new low-carbon technologies and/or shifting market segments. The failure to appropriately address these changes may also directly increase reputational and/or liability risks for organisations.

These risks are manifested in various areas. At the same time, these risks offer opportunities. We list the most important risks and the corresponding solutions.

Policy and regulatory risks

Technological risks

Reputational risks

To anticipate these risks and to distinguish yourself, it is therefore important to take action. Use the opportunities to create a future-proof business with our expertise. Would you prefer to discuss this directly with one of our team members? Contact us for more information.

Sources and links

[1] https://www.dnb.nl/media/a4gdcovq/consultation-document-good- practice-integration-of-climate-related-risk-considerations-into-banks-risk-management-nov-2019.pdf

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Saro
Saro
Co-founder

Saro, life cycle specialist, both boxing- and chess enthusiast (not at the same time) and a big fan of the Italian kitchen. His sustainability journey began at his bachelor years ago together with Joost and Philip. After a few years of LCA experience, he is ready to support companies in their transition towards sustainability. He knows best the added value of sustainable performance.

His mission is ensuring sustainability becomes the norm. In this way, he hopes he doesn’t have to explain to his aunt every time during family birthdays that sustainability is more than solar panels on the roof.

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