subject: The Sustainable Development Journey [print this page] Growing environmental concerns, coupled with public pressure and stricter regulations, are changing the way people do business across the world. Industry is on a three-stage journey from environmental compliance, through environmental risk management, to long-term sustainable development strategies.In the initial phase of the journey, the need to comply with environmental regulations drives improvements in environmental performance.
Businesses adopt a more proactive approach in the next phase. Environmental risk management is introduced, to reduce environmental liabilities and to minimize the costs of regulatory compliance.A substantial number of companies recognize that the implementation of sustainable business strategies can lead to new opportunities and improved results - the business and sustainable development phase.
Step 1: regulatory compliance
The introduction of new environmental regulations, both national and international, forces businesses to improve their environmental performance. But compliance often creates unexpected costs that threaten profitability. The most significant financial liabilities for companies are those associated with remediation, clean-ups and penalties for breaches of legislation. Businesses can face difficulties if they fail to anticipate their environmental liabilities.
Operating in 'compliance' mode, businesses commonly regard environmental protection as an unnecessary burden, a costly undertaking that decreases a company's competitiveness and adversely affects market performance and business results.Faced with the increasing burden of regulation, some businesses choose to go beyond compliance towards comprehensive environmental programmes and sustainable development.
Step 2: environmental risk management
Environmental risk management is the next stage on the journey towards sustainable development.To improve their control of environmental performance, some companies conduct environmental health and safety (EHS) assessments, develop environmental policies, and implement environmental management systems (EMSs). Techniques such as pollution prevention or recycling are used to translate policy objectives into practice.
Step 3: sustainable business strategies
Business strategies for sustainable development mark the final phase in the journey. The aim is to seek win-win situations which can achieve environmental quality, increase wealth, and enhance competitive advantage.
Sustainable development strategies uncover business opportunities in issues which, in earlier stages of the journey, might be regarded as costs to be borne or risks to be mitigated. Results include new business processes with reduced external impacts, improved financial performance, and an enhanced reputation among communities and stakeholders.
