Climate change and global warming need to be tackled by companies now to avoid a Doomsday situation.

That is the stark warning from a panel of experts who held a debate on business sustainability and how to be a better corporate citizen at the Risk and Insurance Management (RIMS) 2008 conference in the San Diego convention centre this week.

The discussion, entitled 'The Future is Now - Upgrading from Enterprise Risk Management (ERM) to Sustainability', focused on how critical it is for firms to develop and implement sustainability programmes in order to succeed in the current climate and ensure the future of their business.

It was led by moderator Peter Breitstone, CEO and managing principal of Aon Environmental Services Group and panelists John Vargo, of Johnson Controls Inc., a director of risk management, and Dan Anderson, a professor from the University of Wisconsin School of Business and author of 'Corporate Survival: The Critical Importance of Sustainability Risk Management'.

Mr. Breitstone outlined what sustainability means to companies and the problems facing a number of firms to become more sustainable.

He said sustainability was forcing companies in all sectors to shift from a single-minded focus on the financial bottom line to a more holistic business view that includes economic, social and environmental factors and considers the changing and multiplying regulations world-wide.

Failure by corporations to proactively develop a sustainability programme may result in third party legal actions, shareholder boycotts and reputation damage, Mr. Breitstone warned, with the outcomes potentially leading to a loss of market share and decreased profit. He added that the harsh reality was if those organisations which fail to act now on the issue may not survive. "ERM is generally focused on a certain aspect of a business and it talks about risk management," he said. "But ERM is a sub-set of a much bigger topic and that is sustainability.

"Sustainability is actually something that we have practised all of our lives — it is about operational, strategic and financial and social issues and principles and values.

"We feel that if you look at sustainability is a broad base you are looking at a lot of other exposures that are important to your business. The bottom line is — if you do not appreciate sustainability you could lose your jobs."

Mr. Breitstone said there were a number of key issues facing companies at large, including a fast-expanding population, estimated to hit nine billion people in 2040, resulting in a reduction in space, and that they needed to understand the risks and how to manage them and even how to turn them to their advantage.

"We have to look at these big risks that impact our companies — it trickles down through the entire fabric of your organisation because it has a direct or indirect impact on your company's bottom line," he said.

Mr. Anderson then talked about how businesses needed to sit up and take notice of the very real sustainable and critical risks taking place in this day and age. "It sounds a bit Doomsdayish, but it really is — there are some serious problems and there needs to be changes made, but as we do so, there are going to be opportunities as well," he said.

"Risk managers have got to get involved in this area because not only does it impact you, but you also have the chance to make a significant difference."

The meeting, which also covered how sustainability risk assessments fill the void in emerging issues such as carbon and greenhouse gas emissions, international environmental compliance standards, social responsibility and up-and-coming risks not addressed by the traditional ERM process, was wrapped up by Mr. Vargo, with a questions and answers session at the end.