Turbulence = Opportunity!
The chart on the right shows how prices of resources have fluctuated. It has six lines: 2 of energy (oil and coal), 2 of food (corn and wheat), and 2 of minerals (copper and iron). Our economy is based on cheap oil. However, every year since 1984, we humans have consumed more oil that we have discovered, and the gap keeps increasing. Plus, extracting oil from the new discoveries is more costly
The precipitous drop in the stock market in late 2008, coupled with lack of liquidity in the financial markets, presents another challenge. Socially responsible companies attract and retain the better shareholders and investors, and have a higher P/E ratio, because they carry lower risk.
Net/net: Companies that start seriously on their Sustainability journey will have competitive advantages in all scarce resource areas. They will also have an advantage in dealing with the increased regulations that are almost certain to be created in the coming years, because they’ll be well ahead of the regulatory curve.
How does Sustainability work? Click New Paradigm to learn more