Impact of business on the environment doubles every 14 years

The business community would reduce profits by 15 percent if thy internalized their environmental impact, which is doubling every 14 years, said Yvo de Boer, special global advisor, Climate Change and Sustainability at KPMG International, during a conference on sustainability hosted on Thursday by KPMG in Bucharest.

He explained that global challenges, ranging from climate change to water shortages, further toughen the operational field for companies.

In Romania, the cost of internalizing the environmental impact for food producers would make up 200 percent of their profit. For energy and mining industries, this figure stands at 86 percent and 64 percent respectively.

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“Companies are beginning to turn sustainability to their business advantage,” said De Boer.

The KPMG representative said it is “encouraging” that more Romanian companies understand the importance of non-financial reporting, whether they do it as a separate exercise or as part of an integrated reporting process.

Yvo de Boer has been involved in climate change policies since 1994. He led the UN Climate Change Secretariat between 2006 and 2010.

Ovidiu Posirca