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Requiring Companies to Disclose Climate Risks Helps Everyone

Harvard Business Review

Over 20 years ago, Harvard Business School professor Michael Porter introduced the Porter hypothesis , which posits that environmental regulation can benefit companies by nudging them to explore their current production methods and eliminate costly waste that they have been blissfully unaware of.

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The Comprehensive Business Case for Sustainability

Harvard Business Review

Yet executives are often reluctant to place sustainability core to their company’s business strategy in the mistaken belief that the costs outweigh the benefits. These unpriced natural capital costs are generally internalized until events like floods or droughts cause disruption to production processes or commodity price fluctuation.