BACKGROUND IMAGE: iSTOCK/GETTY IMAGES
Sustainability risk management (SRM) is a business strategy that aligns profit goals with a company's environmental policies.
The goal of SRM is to make this alignment efficient enough to sustain and grow a business while preserving the environment. One of the chief drivers for SRM adoption is increasing demand for compliance with global and national regulations.
Organizations implementing SRM generally focus on the environmental effects of each business process individually and then look for ways to minimize them. The IT department assists by managing data as it relates to the company's sustainability goals and providing automated auditing and reporting capabilities.
An effective SRM framework can help management identify emerging issues of concern that may affect supply chain, operations and production. Examples of emerging issues include the availability of renewable energy sources, the depletion of non-renewable resources or changing government regulations.
Continue Reading About sustainability risk management (SRM)
- SIRAN is an analyst network that supports social investment research analysts, including those who work on SRM.
- SkillSoft released a white paper entitled "The Greening of Training: How Sustainability Is Reshaping Organizational Learning."
- Dan Anderson reported on "The Critical Importance of Sustainability Risk Management" for AllBusiness.com.