A Thin Green Line: Raising Awareness of Planetary Boundaries

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A Thin Green Line: Raising Awareness of Planetary Boundaries

18 April 2024 / Report

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Businesses already know that they need to manage risks stemming from climate change and the transition to a net zero world. Many are already on a pathway to making business models and operations more resilient. However, most are not yet aware of the concept of planetary boundaries, and why they matter.

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The planetary boundaries framework helps companies understand and manage environment risks to increase resilience. The framework offers an innovative lens for companies to map their environmental dependence and potential impact on diverse and inter-related areas. Embracing these boundaries can lead to benefits such as reduced risk, enhanced innovation, and improved stakeholder relationships, positioning businesses for long-term success in a rapidly changing world. By taking a proactive approach businesses can minimize their environmental footprint, better understand how their individual company operations contribute to resource limitations at a global scale, and build resilience against both the physical and transitional risks associated with environmental damage.

Companies should move beyond isolated climate-centric approaches and adopt interconnected strategies to address the cascading risks from stressed planetary boundaries. Six of these crucial environmental limits—biogeochemical flows, freshwater, land use, biodiversity, climate change, and novel entities such as synthetic organic pollutants, genetically modified organisms, and micro-plastics—have already been breached. Failure to address planetary boundaries can have negative consequences for businesses in the long term, including supply chain disruptions, reputational damage, and increased costs.
Businesses will face stricter environmental regulations, driving a focus on minimizing their footprint, regardless of planetary boundaries legislation. Environmentally conscious corporations should consider aligning their sustainability efforts with planetary boundaries principles for stronger risk management and environmental accountability. Disclosure frameworks

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Authors

Ioannis Siskos

Senior Research Fellow, Environmental, Social & Go…
The Conference Board

Catherine Early

Catherine Early

Research Fellow, Environmental, Social & Governanc…
The Conference Board

Anuj Saush

ESG Center Leader, Europe
The Conference Board

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