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This is Part One of a five-part blog series, “Aligning Profit and Environmental Sustainability.” Each installment will offer solutions for businesses to better integrate environmental sustainability into their everyday operations. Look for these posts every Thursday for the next four weeks.

Implementing corporate environmental sustainability strategies is increasingly becoming standard practice. For example, more than 300 of the S&P 500 report their greenhouse gas (GHG) inventories each year to the Carbon Disclosure Project, and companies from the Fortune 100 and S&P Global 100 are investing billions of dollars to reach renewable energy procurement targets. Some companies are going further and taking steps to reduce the environmental impact of their products, services, and supply chains.

Despite this encouraging progress, a confluence of global environmental challenges is putting more pressure on corporate environmental sustainability strategies to get to scale quickly. Not enough global businesses have integrated environmental sustainability into their long-term decision making. And, as it stands today, existing practices are not enough to protect the natural resources that society and businesses depend on.

WRI examines this gap between existing corporate sustainability practices and the environmental protection needed for the 21st century in our new report, Aligning Profit and Environmental Sustainability: Stories from Industry. We interviewed sustainability managers from AkzoNobel, Alcoa, Citi, Greif, Johnson & Johnson, Mars, Natura, and Siemens to better understand why strategies that are good for both business and the planet are not getting to scale.

We identified four barriers in these discussions, as well as ways companies can overcome them:

At the World Economic Forum in Davos two weeks ago, I was struck by how often the issue of water risk was raised by business executives. As the global economic turmoil is receding, many CEOs and global leaders are turning to other threats—and water is high on the list. For the second year in a row, water crises were named among the top four global risks at the WEF.

It’s easy to see why. More than 1.2 billion people already face water scarcity. By 2025, two-thirds of the world population will experience water stress. That’s largely due to population increase and climate change, but also behavior patterns: Water use grew twice as fast as population growth in the 20th century. The “food-water-energy nexus” was one of the top four megatrends to watch in the recently released Global Trends 2030 report by the U.S. National Intelligence Council.

CEOs increasingly recognize that water is essential for their business models and economic growth. Disrupted availability of affordable, clean water leads to business interruptions, increased commodity costs, and reduced earnings. The extreme drought gripping much of the United States is likely to cost up to one percent of GDP, potentially making it the costliest natural disaster in U.S. history.

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Greenhouse Gas Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard

This standard (also referred to
as the Scope 3 Standard) provides requirements and
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The global recession has brought new attention to chronic structural flaws in current economic models and assumptions. As economies struggle to recover, many are taking a closer look at the broad concept of a "Green Economy," one that simultaneously promotes sustainability and economic growth What would this type of economy look like, and how could we get there? WRI Managing Director Manish Bapna responds to some of the most commonly-asked questions:


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