How can managing risk improve sustainability and reduce your carbon footprint?
Managing risk effectively can significantly improve resilience and longevity of a company and reduce the carbon footprint by proactively identifying and addressing the operational and environmental impacts of business operations. To succeed, a company has to implement and monitor the effectiveness of critical controls in several key areas.
An enterprise risk management framework is essential, and these should include environmental assessments that focus on high-emission areas such as energy use, logistics, supply chain emissions, and production methods. That means companies can prioritise risk mitigation and emission reduction strategies. Aligning that with a well-structured, robust monitoring framework, including KPIs, gives a platform for continuous improvement and accountability.
In addition, companies should also be willing and able to adapt some of the current working practices such as divesting from fossil fuels, switching to renewables, and adopting sustainable product design. That’s not easy, the transformation needs to be planned in detail and implemented over time.
Critically evaluating the supply chain helps to identify vulnerabilities and leads to constructive conversations with current and potential future suppliers to ensure certainty about the continuation of all supply chain matters, often leading to cost savings for all stakeholders.
All of the above reduces regulatory risk, whilst improving the reputation of the company.
Embedding ESG into Risk Management
Forward-looking organisations integrate ESG into their Enterprise Risk Management (ERM) frameworks to achieve all of the above goals.
If this sounds like something you would can benefit from, let’s work together to take effective action. Our workshops and courses are highly acclaimed. To make a start:
For companies, explore our climate change workshops and our consultancy services at https://peakgovernance.co.uk/carbon-reduction-workshops
As an individual register for our accredited carbon literacy training courses at https://peakgovernance.co.uk/accredited-carbon-literacy-training