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Many of the most important business and economic risks are directly linked to environmental and social issues. This includes both threats and opportunities, not only in relation to reputation, which is often mentioned in this context, but, even more importantly, in relation to innovation capability and legislative change on inevitably more and more sustainability-driven markets. It is, however, unclear through which mechanisms such sustainability risks currently affect companies and how they can be systematically identified and managed. Based on the Framework for Strategic Sustainable Development, this study investigates the dynamics and implications of society's sustainability transition from a company risk management perspective. In addition, exploratory and descriptive studies were conducted at two large product innovation companies to identify current risk management practices and preconditions for sustainability integration. The results reveal that a society moving closer towards a collapse of environmental and social systems leads to increasing sustainability-related threats for unsustainable businesses and increasing opportunities for sustainable businesses. Also, risk management is found to be a promising way for maneuvering in a smart zone between being too passive and being too pro-active in relation to sustainable innovation.The study participants at the case companies were knowledgeable about risk management in general but were largely unfamiliar with risks associated with sustainability and no processes or support tools exist to work systematically with such risks. Key steps to accomplishing an integration of a strategic sustainability perspective into risk management are proposed as: (i) identifying the effects of sustainability issues on internal and external stakeholder value; (ii) actively including sustainability in objective setting and cascading objectives across the levels of the organizational hierarchy; and (iii) developing concrete support for identifying, assessing, and managing economic sustainability risks. Thereby, companies can enhance their competitiveness while providing leadership in the sustainability transition. ; open access ; Sustainability Implementation Package

Numerous examples have shown how environmental and social issues can affect companies to an existential level. In fact, today's most urgent business risks, e.g. brand value, legislative change, litigation, and supply chain disruptions, are directly linked to sustainability issues. These risks need to be systematically identified and strategically managed on both strategic company-and operational product development level in order for a company to be long-term competitive. Based on literature review and interviews at case companies, this paper investigates the current state for integrating a strategic sustainability perspective in risk management processes and related support tools. Results show that sustainability risks are not consciously identified and managed at the companies. Research is at an early stage and few frameworks and tools exist. Based on the findings, the study identifies and provides a comprehensive analysis of challenges for sustainability integration, which work as a foundation for future research. Finally, key steps to advance understanding and methods in sustainability risk management are suggested.

Society's transition towards sustainability comes with radical change, which entails significant threats and opportunities for product development and manufacturing companies, for example related to new legislation, shifting customer preferences, and increasing raw material prices. Smart risk management therefore plays a key role for successfully maneuvering society's sustainability transition. However, from a company perspective, it remains challenging to connect the macro-level societal change with tangible risks for the business on the micro level. Based on interviews with academic and industrial experts, this study identified 21 key aspects for sustainability risk management. Drawing on these results and research from the areas of transition design, strategic sustainable development, and sustainability risk management, a conceptual approach for strategic risk management within the sustainability transition is presented. It builds on layered, double-flow scenario modelling in which backcasting from a vision, framed by basic principles for sustainability, is combined with forecasting from the present. The implications of such scenarios, i.e., risks, can then be identified and managed. By doing so on different scales, connections between macro- and micro-level change can be established. Thereby, product development companies shall be supported in making sustainability an intrinsic part of decision-making across the strategic, tactical, and operational levels to increase competitiveness while contributing to the transition towards a sustainable society. ; open access

The Blekinge Institute of Technology (BTH) Karlskrona, Sweden, will begin a new Master's programme focusing on sustainable development in September 2004. The programme is intended to contribute to a growing international network of sustainability practitioners, including early and mid-career professionals, resource managers, executives and political decision-makers. As with many programmes of this type, this one will require coverage of numerous complex economic, social and ecological issues. In so doing, it will cover a number of interrelated disciplines concepts and tools (e.g. environmental science, system dynamics, public policy, business strategies, corporate social responsibility, dematerialization and 'green technologies'). Various sectors of the sustainability arena will also be studied including agriculture, transportation, health, energy and product development. To deal with the high complexity inherent in sustainable development, we intend to test the enhanced learning capabilities of three unique and interrelated aspects of this Master's programme including: (1) a structured comprehension of sustainable development, using "Backcasting from Basic Socio-Ecological Principles of Sustainability"; (2) free creativity within basic constraints established by the structured comprehension and (3) a learning process that 'walks the talk' with respect to free creativity within basic constraints. Recognizing that "society within the biosphere" is inherently a complex system, the programme will revolve around a generic, structured model for planning and decisionmaking in any complex system. The model is adaptable to any system at any scale – e.g. an organization, a football game, and in this case, "society in the biosphere". The programme distinguishes five essential system levels including: (i) the system; (ii) success; (iii) strategy; (iv) actions and (v) tools. Second, a structured comprehension, anchored to basic principles at the success level – the 'trunk and branches of sustainability' – allows for and promotes free creativity on actions in a particular context – the 'leaves'. Third, the students will be exposed to a learning process of creative use of actions and tools that the model allows for in any organization – sharing the basic trunk and branches and practicing free creativity amongst the leaves. The programme's learning process will facilitate a systematic approach to analysis of all kinds of current sectors and problem areas through envisioning of solutions and finding strategic paths of actions and tools towards sustainable outcomes within those sectors. It will culminate in a thesis, following the same general structure, during the last-half of the programme.