It is appropriate to write about risks to the world economy and the problems of the Euro zone in a blog about sustainability, not only because these are important issues but because there are close parallels between the Euro crisis and the challenge of sustainability. European politicians are taking decisions that will take them through the next three months or the next year. There is little time for the deep thinking required when the focus is on the immediate containment of the crisis. Business leaders are subject to the same pressure to deliver this quarter’s, or this year’s results. Deep thinking over the longer term has to wait until the company is doing well and short-term profitability is secured.
The operations of many businesses are unsustainable, dependent on long supply chains and relying on fossil fuels, directly and indirectly through the electricity supply. The action of many executives is to focus on the medium-term, hedging fuel costs and seeking insurance for supply chain disruption. The real solution is to think longer term, remove fossil fuel from operations and shorten supply chains to bring them under closer control. This is not primarily a CSR activity, or action designed in response to climate change – although such reasons can be cited to burnish the reputation of the corporation – these are strategic choices to de-risk operations and lay the foundations for long-term profitability.
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