Sustainability Drivers in a New Political Environment

Many companies now build sustainability practices into their business models. Companies are motivated by mandatory drivers (sticks), including regulations, common law litigation, and contractual requirements, and incentives for voluntary actions (carrots), which includes financial incentives, certainty, and competitive advantage. This article will discuss the evolution of these drivers, the current sustainability landscape and how companies can navigate this landscape through both responsive and proactive risk management. The article will discuss critical developments arising with and after the 2015 Paris Climate Conference, which hosted the 21st Conference of the Parties (COP21) and the Sustainable Innovation Forum 2015. Finally, the article will review how sustainability programs, incentives, and other drivers toward implementation may be impacted by the policies and early direction of the new U.S. administration.