Failure of organizations to manage the Environmental and Social (E&S) impact of their business activities and operations produces a plethora of negative impacts for their businesses and communities in which they operate. These impacts often include pollution of land, air and water; destruction of biodiversity and the ecosystem; threats to human health and safety; labour issues and displacement of livelihoods; food insecurity, scarcity and high prices, etc.
An enterprise whose activities do not comply with local environmental standards and regulations can face temporary or even permanent closure. Company operations that are detrimental to the environment can be subjected to direct actions of the community itself through strikes, cutting off access, destruction of factories, buildings, and bombings. Even national and international clients may also boycott or prevent the sale of the company’s products.
Threshold Konsults help their clients to manage their E&S risks better which positively affects their cash flow, and by extension their capacity to meet obligations in an adequate and timely manner. Damage to the environment often poses monumental reputational risk to the responsible organization and such repercussion is better avoided through proactive E&S Management. Many Development Finance Institutions (DFIs) such as the IFC, FMO, PROPARCO and AfDB, require that their “downstream” clients put in place E&S risk analysis systems before they are allowed access to lower cost lines of credit.
Therefore, discerning organizations put in place formal systems to manage their environmental and social impacts in order to reap benefits thereon. Threshold Konsults is well equipped to partner with clients to develop and install effective standard E&S Management Systems that guarantee the noted advantages and business sustainability.