External stakeholders may not objectively assess the


External stakeholders may not objectively assess the risks
of the corporations operations caused by a lack of
information and understanding of the corporation’s
activities. Need for communications strategy including
education of risks and actions being taken.
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5

Reaction orientated risk management strategy

Management of the potential reaction of different
stakeholders after an emission has occurred.

Goal is to increase level of certainty about reactions of
various stakeholders
–
Reduce the asymmetric distribution of information
between parties impacted by the emission
–
Communication and dissemination of information is
critical
–
Resolve disputes in an objective manner where
practicable
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6

The Seven Rules of Effective Risk
Communication
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7
1. Accept and involve the public as a legitimate partner in
the decision making process
2. Listen to your audience
3. Be truthful, honest, frank and open
4. Coordinate, collaborate with other credible sources
5. Meet the needs of the media
6. Speak clearly and with compassion
7. Prepare, plan carefully and evaluate your communication
performance

What is
sustainability?
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8

Environmental sustainability

Environmental sustainability is defined as responsible
interaction with the environment to meet the resource and
services needs of current and future generations without
compromising the health of the ecosystems that provide
them.

It is the response of an ethical business to the demands
of diminishing finite natural resources and impact of
industrialisation on the environment.

It supports the other components of sustainability since a
healthy environment is essential for social and
economic wellbeing.
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9

Economic benefits of
environmental sustainability
13
0

Encourages business process re-engineering with improved efficiency
and lower costs using fewer resources including greater energy
efficiency, improved waste management, lower cost transportation and
packaging

Increases competitive advantage where customer buying preferences
favour businesses with a better environmental performance

Encourages innovation of new products and services that meet the
increasing demand for socially and environmentally conscious
alternatives and adaptability to meet changes in the environment

Improves access to capital from share and debt markets as investors
shift preferences to low carbon businesses (transition risk and ESG)

Contributes to management actions which prevent attracting greater
regulatory supervision and/or penalties and fines

Increases the ability to attract talent and be an employer of
preference

Improves stakeholder engagement and decreases reputational risk

What is ESG?
Environmental, Social and Governance (ESG) Criteria is a
set of standards for a company’s operations that socially
conscious investors use to screen potential investments.

Environmental criteria look at how a company performs
as a steward of the natural environment.