Doing nothing brings significant risk

The consensus among risk experts is firmly against a “wait-and-see” approach

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Even low-probability risks accumulate: exposure to a “1-in-20-year” flood = 23% chance within 5 years

Carbon pricing alone can erode 50% of climate-related EBITDA losses

Innovations scale rapidly; firms ignoring clean tech and adaptation solutions risk losing market share

Consumer and investor preferences are shifting; sustainable products already growing faster than conventional ones (28% vs. 20%)

Trade-offs to consider

The matrix provides a holistic view of the financial trade-offs of a sustainability strategy

Barriers remain — 31% of sustainability leaders cite high costs, 24% demand uncertainty, 24% lack of incentives

See matrix

Short term (1-3 years)

→ Operational efficiency (energy, water, waste)

→ Access to new capital

→ Strategic positioning inc. M&A uplift

→ Lower cost of capital

→ Talent attraction

Long term (3+ years)

→ +5-20% EBITDA

→ ROI 2-14x

→ Brand loyalty

→ Talent attraction

→ Market, legal & regulatory risk resilience

Short term (1-3 years)

→ Upfront Capex

→ Transitional Opex increases

→ Demand uncertainty

Long term (3+ years)

→ Sector-dependent return variability

→ Longer payback

→ Inaction on sustainability: -5-25% EBITDA