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Resilience in a hotter world.

Andrew Winston

    Harvard Business Review
    |May 17, 2014
    PubMed
    Summary
    This summary is machine-generated.

    Companies must pivot to address extreme weather and resource scarcity. This involves prioritizing global challenges and integrating sustainable practices for long-term profitability and resilience.

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    Area of Science:

    • Environmental Science
    • Business Strategy
    • Economics

    Background:

    • Increasingly severe weather events and dwindling resources pose significant threats to global prosperity.
    • These challenges impact supply chains, power grids, and corporate profits, necessitating urgent strategic shifts.

    Purpose of the Study:

    • To outline a strategic framework, termed 'the big pivot,' for companies to navigate environmental challenges.
    • To demonstrate how prioritizing global problem-solving can be achieved profitably through capitalism.

    Main Methods:

    • Adopting a long-term vision focused on science-based goals and radical innovations.
    • Implementing new investment appraisal tools that account for unpriced environmental and social costs/benefits.
    • Fostering collaboration, including with competitors, to reduce resource dependency and enhance resilience.

    Main Results:

    • Companies can increase resilience to volatile resource prices, power outages, and changing customer demands.
    • Strategic adaptation leads to improved business performance and contributes positively to the common good.
    • The 'big pivot' enables profitable engagement with critical global issues.

    Conclusions:

    • A fundamental shift in corporate strategy, operations, and mindset is essential for sustainable business success.
    • Integrating environmental stewardship with profit motives is achievable and beneficial.
    • Proactive adaptation to climate change and resource scarcity is critical for future prosperity.