Don't Let Sustainability Be the Victim of a Recession

While profit making is not guaranteed for businesses during a recession, expect companies and investors to shift their focus to greater sustainability efforts. The key components of sustainability—making operations more efficient; reducing waste; communicating effectively with customers, staff, and supply chains; identifying risks; and devising strategies for the long term—will all lay the foundation for businesses to survive the tough times and grow as soon as conditions allow. Investors will increasingly seek business models that value sustainability strategies.

Furthermore, a robust sustainability program can help during a crisis as it provides guardrails for decision-making during a time of heightened uncertainty. By their very nature, effective sustainability programs also require a high degree of horizontal collaboration across an organization, an openness to innovation and ideas that come from unconventional sources, and an ability to “look around the corner”—all of which can speed the response and spur innovation during a time of crisis. 

Finally, a sustainability strategy is as much about innovation as it is about risk reduction. Time is a critical factor while stepping up sustainability actions when there is a forecast of an impending recession. Companies must analyze emerging risks to prepare themselves for the myriad challenges of a recession, and a delay in implementing sustainability strategy changes can lead to missed opportunities or even higher risk exposure. When it comes to a sustainability strategy, a culture of collaboration can be a catalyst for innovating solutions to society’s thorniest challenges. 

As the clouds of recession loom in Europe and elsewhere in many major economies, businesses should look to lessons learned from previous economic downturns—sustainability actions should be stepped up, not down, to help companies not only survive but thrive. 

For more, read Don't Let Sustainability Be the Victim of a Recession