Business is progressing on a journey from environmental compliance, through environmental risk management, to long term sustainable development strategies. In the initial phase of the journey, the necessity to comply with environmental laws and regulations drives improvements in environmental performance.
Businesses adopt a more proactive approach in the phase that follows.
Environmental risk management is introduced to reduce environmental liabilities and to minimize the costs of regulatory compliance. A substantial number of companies recognize that the implementation of sustainable strategies can translate into new opportunities and improved business results, leading them to the business and sustainable development phase. Regulatory Compliance Compliance with regulatory measures represents the first step on the journey. Growth in national and international environmental laws and regulations forces businesses to improve environmental performance to avoid financial liabilities. Regulatory compliance often results in unexpected expenditures that threaten companies' business results.