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Conflict translates environmental and social risk into business costs.

ABSTRACT: Sustainability science has grown as a field of inquiry, but has said little about the role of large-scale private sector actors in socio-ecological systems change. However, the shaping of global trends and transitions depends greatly on the private sector and its development impact. Market-based and command-and-control policy instruments have, along with corporate citizenship, been the predominant means for bringing sustainable development priorities into private sector decision-making. This research identifies conflict as a further means through which environmental and social risks are translated into business costs and decision making. Through in-depth interviews with finance, legal, and sustainability professionals in the extractive industries, and empirical case analysis of 50 projects worldwide, this research reports on the financial value at stake when conflict erupts with local communities. Over the past decade, high commodity prices have fueled the expansion of mining and hydrocarbon extraction. These developments profoundly transform environments, communities, and economies, and frequently generate social conflict. Our analysis shows that mining and hydrocarbon companies fail to factor in the full scale of the costs of conflict. For example, as a result of conflict, a major, world-class mining project with capital expenditure of between US$3 and US$5 billion was reported to suffer roughly US$20 million per week of delayed production in net present value terms. Clear analysis of the costs of conflict provides sustainability professionals with a strengthened basis to influence corporate decision making, particularly when linked to corporate values. Perverse outcomes of overemphasizing a cost analysis are also discussed.

SUBMITTER: Franks DM

PROVIDER: S-EPMC4040549 | biostudies-literature | 2014 May

REPOSITORIES: biostudies-literature

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Conflict translates environmental and social risk into business costs.

Franks Daniel M DM Davis Rachel R Bebbington Anthony J AJ Ali Saleem H SH Kemp Deanna D Scurrah Martin M

Proceedings of the National Academy of Sciences of the United States of America 20140512 21

Sustainability science has grown as a field of inquiry, but has said little about the role of large-scale private sector actors in socio-ecological systems change. However, the shaping of global trends and transitions depends greatly on the private sector and its development impact. Market-based and command-and-control policy instruments have, along with corporate citizenship, been the predominant means for bringing sustainable development priorities into private sector decision-making. This res ...[more]

PMID: 24821758

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Project description:This research proposes a simulation-based assessment of outdoor thermal and acoustic comfort for a planned business urban district in Singapore for retail planning using a customized OpenFOAM-centric multi-physics environmental simulation platform called the Integrated Environmental Modeller (IEM). IEM was employed to simulate the coupled impacts of solar radiation on wind and air temperature and wind and air temperature effects on traffic noise propagation in the district on the equinox and solstice day of the hottest period. Using IEM simulation results, we computed the thermal and acoustic comfort acceptability indicators derived from local field studies' results. The spatial distribution of environmental comfort acceptability indicators in the worst-case scenario can be used to distinguish the zones exposed to thermal or noise influence. The noise-affected zones are near the main roads and overlap a part of the thermal-affected area. The thermal-affected area is almost everywhere in the studied sites in the worst-case scenario. Having outdoor retail spaces with both poor thermal and acoustic comfort is not recommended if the thermal and acoustic comfort cannot be improved simultaneously. For the high-level retail planning, a simplified parametric analysis considering solar irradiance blockage and wind speed enhancements, is provided. Considering the worst-case scenario, ≥50% thermal acceptability can be achieved by blocking 54%-68% solar irradiance among the pedestrian thoroughfares and the retail spaces. Coupled together, blocking the solar irradiance and enhancing the wind speed can further improve thermal comfort locally. These results can guide the retail mix (e.g., al fresco restaurants, pop-up kiosks etc.) near high footfall areas and provide reference for future plans combining landscape and infrastructure, (e.g., trees with shelter walkaways, green walls with outdoor ventilation fans etc.) taking into account the environmental acceptability of people working in or visiting the tropical urban district.

Dataset Information

Conflict translates environmental and social risk into business costs.

Publications

Conflict translates environmental and social risk into business costs.

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