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Risk Management and environment

Environment is the main concern at this end of the year. Few days before the opening of the climate change conference in Copenhagen, media seized the subject and are trying to forecast meeting’s conclusions. For firms the statement is simple : agreement or not in Copenhagen, environment has to be considered as a risk and an opportunity.

Reputation risk should not overshadow other risks linked to the environmental problematic.

If environment has become a major concern for French people (and elsewhere), firms must seize the subject immediately : indeed, first consequence for a polluter firm or not virtuous enough, is a media hype which can immediately be against it and can turn in a major crisis. The challenge is so important that it has been already used in the energy sector, during important African contracts for example. But the brand risk must not overshadow other risks linked within the problematic.

« Green » and « Bio », environment respect, remediation, all those thematic have become dominant’s marketing arguments encouraging several contractors to invest, stirring a double constraint of partnership validation : do news incomings (manufacturers, negotiators in High environmental quality (HEQ), or renewable energy) have enough finances to ensure the aimed contract and are their products qualifications showed real ? Checking that the label “renewable” is not empty is the only way to avoid a negative consequence from actors such as associations, NGO’s and media.

The questioning of productions sites ‘safety becomes also a key with the environmental problematic. From the middle of the 90’s, “ecoterrorism” has become such a reality that FBI recognizes it officially, and British integrated it as economic terrorism. Organisations like Animal Liberation Front or Earth Liberation Front have been suspected by the FBI to organized 600 “criminal acts” in the United States between 1996 and 2002. Obviously, all the industries are not concerned, but some of them (linked far or close to animal experimentation for instance) must take this threat in consideration.

Beyond fatalism, global research of a best environmental equilibrium is an important source of opportunities. Several industries, and first of all, energy, are facing challenges which can turn upside down the competitive balances. Research and development set up on the subject has to be accompanied with an important technology and competitive watch : To be the first in a “clean technology” is a winning guarantee.