Companies which fail to undertake environmental audits risk being sidelined by the increasingly important investment sector of  “ethical investors”, says mega-broker Marsh. The United Nations Environment Program (UNEP) estimates that around $30 trillion will be invested globally in energy infrastructure during the next 20 years. 

“Consumers are putting their money where their mouth is,” Marsh director Stuart Bassett said. “Environmental risk management policies are becoming a key element in the higher investment choices.” 

Whether it be directly from the purchase of shares or superannuation, a broad mix of Australians are investing their money in environmentally responsible companies. Companies that have a good environmental performance also tend to post a more competitive bottom line. These businesses usually plan to be in business beyond 12 months, an attractive prospect for super investments.  

“Companies may also receive wider insurance coverage for potential environmental liabilities, known or unknown,” Mr Bassett said  “They can also access insurance products that remove liabilities from the balance sheet.” 

Potential risks are clearly identified and minimised through an environmental audit.  Companies that do this successfully can effectively position themselves in the “ethical investment” market.  There is a great opportunity to make a big contribution to a sustainable future.