SWEEP | WHITEPAPER
02 HIGHLIGHT THE RISKS AND HIDDEN COSTS OF INACTION
From supply chain disruptions to mounting regulatory pressure, the risks of ignoring sustainability are no longer distant threats – they’ re already hitting business bottom lines. Climate-related events are causing increasingly frequent and severe disruptions to logistics and production, leaving companies exposed to delays, shortages and rising costs. At the same time, regulatory environments are tightening across markets, with fines and compliance failures becoming more common and more costly. Businesses that fail to adapt are finding themselves outpaced
THE MAIN TAKEAWAY:
Sustainability is a risk imperative. Ignoring it exposes your business to costly disruption, lost market share and regulatory fallout. by competitors who are actively managing these risks through ESG strategies. The financial consequences of inaction can be significant, affecting not only operational performance but also long-term resilience, investor confidence and brand reputation.
Sustainability protects your brand and market share Falling behind on sustainability incurs real business costs. Capgemini’ s recent report found that:
• 54 % of companies lost market share to rivals that could evidence more ESG action
• 44 % suffered reputational damage
• 68 % say sustainability helps attract and retain customers
Sustainability reduces regulatory and financial risk Ignore ESG, and the penalties stack up:
• 27 % have already faced regulatory fines
• Up to 25 % EBITDA loss by 2050 from climate-related risks
100 July 2025