From Risks to Rewards: How Collaboration Fuels Sustainability Success 

By Bill Bradshaw

Bill Bradshaw, London Operations Manager for FM underscores the vital role of collaboration between Chief Sustainability Officers (CSOs) and risk managers in achieving successful sustainability outcomes. By fostering strong internal and external partnerships, organisations can effectively identify and mitigate risks associated with sustainability initiatives, enhance climate reporting and stakeholder transparency, leverage data and innovation for resilient strategies, and ultimately navigate the complexities of a changing climate to ensure long-term business success. 

The importance for businesses to integrate sustainability into their core operations has never been clearer. Climate change presents significant risks – take the record flooding seen in Europe last year – demanding a proactive and strategic approach to sustainability. While Chief Sustainability Officers (CSOs) champion environmental and social goals, effective implementation requires a cross-functional effort, and risk managers are an essential part of that mix. By fostering strong partnerships across the C-suite and risk function, organisations can leverage diverse expertise, enhance climate reporting frameworks, and embed resilience into their sustainability strategies.    

The Evolving Role of Risk Managers 

To properly understand the benefits of effective organisational collaboration, it’s vital to also gain an understanding of the changing roles risk managers are playing when it comes to sustainability. Traditionally, risk managers may have been perceived as a barrier to ambitious sustainability initiatives, focused instead on the potential downsides and risks. However, their role is rapidly evolving. With increasing regulatory scrutiny, investor pressure, and the growing physical and financial impacts of climate change, risk managers are now crucial allies in securing business resilience while pursuing sustainability objectives. 

Consider the example of photovoltaic (PV) panel installations – a common pathway to reducing carbon emissions. While seemingly straightforward, the integration of solar technology can introduce new operational risks, such as fire hazards, electrical grid instability, or cybersecurity vulnerabilities. Risk managers, with their deep understanding of potential threats and mitigation strategies, can play a vital role in assessing these risks, advising on appropriate safeguards, and ensuring the long-term viability and safety of such initiatives.    

Building Bridges: CSOs and Risk Managers 

Effective collaboration between Chief Security Officers (CSOs) and risk managers is paramount to the success of an organisation’s sustainability strategy. By actively engaging with each other, they can: 

• Share critical information: CSOs bring invaluable insights into the evolving landscape of sustainability, offering early warnings about emerging trends, as well as updates on relevant regulatory changes and shifting stakeholder expectations. This is crucial as sustainability strategies often require flexibility. On the flip side, risk managers bring a wealth of data, scenario analyses, and risk models that can help CSOs understand the broader picture. By sharing this information, both parties can make more informed and aligned decisions. 
• Identify and mitigate risks: Jointly assessing the risks associated with sustainability initiatives is critical for minimising disruptions and maximising success. For example, if a company is shifting its supply chain to more sustainable sources, there could be operational risks such as logistical challenges, supplier instability, or even regulatory obstacles. A collaborative approach allows CSOs and risk managers to identify these risks early and develop comprehensive strategies for mitigating them.  
• Strengthen climate reporting: As organisations face increasing pressure to report on their sustainability efforts, integrating risk management perspectives into climate reporting becomes important for credibility. Stakeholders – from investors to customers—demand transparency regarding an organisation’s climate-related risks and resilience strategies. Risk managers can provide the data and modelling that strengthens climate-related disclosures, helping to forecast the potential physical and transitional risks posed by climate change.  
• Drive innovation: By combining their expertise, these teams can develop new strategies, tools, and technologies that help solve both sustainability challenges and risk mitigation needs. For example, new approaches to carbon footprint reduction could be evaluated alongside the risk of disruption to business operations or supply chains. This innovation extends beyond technology, influencing business models, operations, and even partnerships with other organisations.  
• Leverage data for informed decision-making: Data is the backbone of both sustainability and risk management efforts. By tapping into advanced analytics, organisations can gain a clearer, more precise understanding of the climate-related risks they face – whether those risks are physical (such as extreme weather) or transitional (such as changes in market dynamics or regulations). Both CSOs and risk managers can use data to model potential scenarios and assess how different strategies could impact the organisation’s overall sustainability goals. Furthermore, data analytics can track progress over time, identifying trends, gaps, and areas of improvement.  

The Power of External Partnerships 

While internal collaboration is essential, organisations can further enhance their resilience by seeking external partnerships. These partners, including insurance providers, bring valuable expertise, data, and tools to the table. By leveraging such resources, organisations can navigate complex sustainability challenges more effectively, mitigate potential risks, and identify the most effective solutions to safeguard their long-term operations. 

For example, third-party organisations can collect data that can facilitate informed decision-making. By analysing climate-related risks and vulnerabilities, organisations can prioritise investments in mitigation measures, such as installing the most effective flood protection barriers or implementing robust supply chain diversification strategies.

Climate change presents a multifaceted challenge that requires a comprehensive and integrated approach. By encouraging strong collaboration between CSOs and risk managers, and leveraging the expertise of external partners, organisations can build resilient sustainability strategies that protect their long-term value, enhance their reputation, and contribute to a more sustainable future. In this era of increasing uncertainty, embracing a proactive and risk-informed approach to sustainability is not just a responsible course of action; it is essential for long-term business success.

About the Author

Bill Bradshaw joined FM in 2002 and has held senior roles across EMEA and APAC, including Vice President, Client Service Manager. Now London Operations Manager, he oversees growth and client services in the U.K., Ireland, Nordics, and Middle East. He holds a doctorate in mechanical engineering from Liverpool John Moores University.