Strategic Focus: The New Role Of Sustainability Risk Management In Operational Excellence Initiatives

Executive Summary

2021 has seen an explosion in environmental, social and governance (ESG) and sustainability news, from the mainstreaming of ESG investment strategies to the US rejoining the Paris Climate Agreement under President Joe Biden. This creates a new environment for senior executives in operations and maintenance roles, with sustainability becoming a key mandate for driving operational excellence (see Verdantix Market Overview: Investor Focus On ESG Will Transform Sustainability Strategies). A number of market forces, such as investor focus and government policies, are raising sustainability on the corporate agenda, while facility-level considerations such as climate change resilience and mitigating environmental pollution at industrial facilities make it relevant for executives at industrial sites. A host of technologies exist for these executives to meet sustainability challenges. The focus for senior executives within operations, maintenance and engineering is moving from considering isolated parts of sustainability – such as safe operations, environmental risk mitigation and leadership accountability – towards a more encompassing approach. Meanwhile, their responsibilities are also increasing, to meet new corporate sustainability goals.