may occur when a natural product or service that the company relies on is no longer available (or available at an affordable price) as resources become scarce through over-exploitation, climate change or policy change.
and difficulties in accessing affordable capital increase as financial institutions and other investors seek higher standards, such as achieving the UN Sustainable Development Goals (SDG).
Legal or regulatory risks
arise as environmental standards and local laws become more stringent in line with policies such as thePost-2020 Global Biodiversity Framework.
arise and managing poor public opinion and negative press coverage increases in importance as consumers become more aware of the issues, for example, associated with forest-risk commodities.