IRM ERM M2U8.1 Sustainability

Question 1

Sustainable Development defined as

Answer 1

Sustainable Development was defined in the 1987 United Nations Report of the ‘World Commission on Environment and Development: Our Common Future’ to be “Development that meets the needs of the present without compromising the ability of future generations to meet their own needs”.

Question 2

Todays terms for Sustainable Development

Answer 2

ESG (Environment, Social and Governance), Corporate Social Responsibility, Licence to Operate, and Sustainabilit

Question 3

The scope of sustainability

Answer 3

The scope of sustainability is vast and is best captured through the United Nations Sustainable Development Goals (SDGs). Launched in 2015, the 17 goals are supported by numerous targets and metrics.

Many organisations are currently prioritising climate change (SDG #13), as it poses a high level of both physical and transition (non-physical) risk to, and from, organisational activities.

Question 4

ESG “risk and opportunities”

Answer 4

he majority of ESG focused documentation refers to “risk and opportunities” where risk is interpreted to be threat only. While we, as risk management practitioners, know this to be an incorrect use of the term “risk”, it is the common usage, and we should therefore be aware of it.