There is growing concern among businesses as climate change gradually affects their ability to work, grow and remain profitable. This is where sustainability risk management (SRM) comes in. By integrating a sustainable approach, businesses actively decrease their contributions to the climate crisis. They also make decisions that ultimately further their own growth goals in the long term.
According to Sustainable Review, SRM is a growing field thanks to concerns around climate change and the risks it poses for people and the planet. However, experts at Supply Chain Management Review (SCMR) point out that pressures to streamline supply chains for cost-effectiveness also result in decreased care towards SRM.
Attention to sustainability is increasingly seen as a fundamental component of business, particularly concerning public-facing communications. Companies are under more and more pressure to meaningfully address environmental concerns.
SRM and Corporate Sustainability
The online Master of Business Administration (MBA) with a Concentration in Corporate Sustainability program from Southern Oregon University (SOU) prepares professionals for a variety of roles that directly impact SRM. Graduates understand the interplay between corporate sustainability and SRM: Corporate sustainability is where SRM goals align a company’s aim to make profits with its aim to act in an environmentally responsible manner. Sometimes, SRM expertise comes from within a company via a dedicated role or team. Other times, outside consultants are vital in analyzing production flows and offering tailored best practices.
Professionals in this space must also understand that meaningful SRM goes beyond PR management, according to TechTarget. It works by assessing and responding to the three ESG factors: environmental, social and governance (ESG). While we often think of environmental factors such as pollution, deforestation or wasteful consumption at the top of the list when it comes to sustainability, the ESG factors show us that there is more at play here.
As TechTarget explains, “The risks that come with ESG-related issues can have legal and financial consequences as well as affect a company’s overall reputation.” Due to these concerns, companies must identify and address possible risks before they become serious issues. Business-minded administrators with an education in SRM can help such organizations assess company practices and find ways to avoid taking unnecessary risks, like those that could endanger the planet and fellow human beings.
Purpose of an MBA in Corporate Sustainability
An advanced degree that provides both business and environmental governance knowledge is the key to the future of SRM. An MBA in corporate sustainability can empower future leaders in this area by providing them with education on relevant laws and governance plans.
An interesting example presented by Deloitte explains that “organizations that put in place strong governance and controls may be better positioned to deliver on their goals and comply with reporting and regulatory requirements.” The writers of the article note that to work toward a “green world through environmental, social, and governance (ESG) compliance,” sectors like power and utilities hold the key to unlocking sustainability-minded business practices the world over because governments and industries work very closely.
Consequently, knowledge of planned and probable government intervention is a highly important field of study for companies wanting to increase their SRM responsiveness. In the long run, time and energy invested into SRM can also help businesses unlock new potential, as stakeholders increasingly want to ensure their businesses act responsibly. This is why those with SRM backgrounds are more valuable than ever as candidates for corporate roles.
Gain Corporate Sustainability Insights Online in Southern Oregon University’s MBA Program
SOU’s online MBA Corporate Sustainability program aims to produce strategic thinkers who can respond to real-time events while considering the needs of their companies and ESG factors. Such individuals provide corporations with a new level of resiliency in the face of uncertainty. SOU’s program includes courses that analyze real-life examples of corporate sustainability, in-depth financial statement analysis and much more to create adept workers who are ready to overcome SRM challenges.
Program graduates are excellent candidates for director-level roles in sustainability analytics and ESG reporting. As corporations take ESG factors more seriously due to public pressure and a desire to mitigate their own business risks, graduates of advanced degree programs like SOU’s will find expanding career opportunities in the sector.
Learn more about Southern Oregon University’s online Master of Business Administration with a Concentration in Corporate Sustainability program.
