Business operations are increasingly paying attention to environmental indicators impacting the supply chains and manufacturing process as well as consumer demands when taking strategic decisions. This report identifies eight key natural resources themes that are expected to stay relevant in the long-term, and are important for understanding operational and environmental risks. These include water risks, climate change, and commodity price volatility.
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The supply and demand of natural resources present risks in the form of potential disruption to supply chains, falling brand loyalty and increased competition for finite resources, leading to commodity price hikes. On the other hand, sustainable business models can reduce costs, preserve and protect the planet’s endangered resources, and build on a brand’s reputation.
The fluctuation in commodity prices has important business implications as it can impact profit margins. Natural resources commodity price forecasts help to make budget allowances.
Consumers are increasingly leaning towards green brands, in line with the New Consumerism, which sees consumers reassessing their priorities, with conscious consumption increasingly replacing conspicuous consumption.
Before expanding in an existing market or entering a new one, it is necessary to know the availability of resources to avoid additional costs arising from resource constraints.
This Strategy Briefing identifies eight key natural resources themes that are expected to stay relevant in the long-term, and are important for understanding operational and environmental risks. These include water risks, climate change, and commodity price volatility.
Many companies have already adjusted their models to become more sustainable, and the case studies provide examples of how they have done so. Businesses that are prepared for these shifts will be best-placed for long-term success.