Environmental ‘megaforces’ loom large

A report from KPMG has identified ten environmental ‘megaforces’ and says businesses must act now because impact costs are doubling every 14 years. Charlotte Reid has more.

The report, called Expect the unexpected: building business value in a changing world, looks at the impact climate change, energy and fuel and water scarcity, amongst other environmental factors will have on business.

The 10 global sustainability ‘megaforces’ are:
•    Climate change
•    Energy and fuel
•    Material resource scarcity
•    Water scarcity
•    Population growth
•    Wealth
•    Urbanisation
•    Food security
•    Ecosystem decline
•    deforestation

Vincent Neate, KPMG’s UK head of climate change and sustainability, said, “We are living in a resource-constrained world … The rapid growth of developing markets, climate change, and issues of energy and water security are among the forces that will exert tremendous pressure on both business and society.

“Business must take a leadership role in the development of solutions that will help to create a more sustainable future.”

The findings were published at KPMG’s summit in preparation for this summer’s Rio+20 conference. Connie Hedegaard, EU commissioner for climate change, says Rio+20 is an “opportunity to rethink” the way the economy currently works.

Yvo de Boer, KPMG’s special global adviser on climate change and sustainability, said, “Corporations are recognising that there is value and opportunity in responsibility beyond the next quarter’s results; that what is good for people and the planet can also be good for the long term bottom line and shareholder value”.

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