Long-term risks are existing risks associated with current trends that are anticipated to increase; or risks currently not material, but that could develop into major areas of concern for a business, or for society as a whole. We monitor the development of these risks as part of our risk management process and include them in our overall strategic assessment.
The most significant long-term risks we observe are:
- Public concern over specific substances and their environmental impact (such as hazardous substances, plastics/synthetic polymers, fossil fuels), could result in major changes in our markets
- Emerging technologies – including downstream process technology, digital and cybercrime – transforming our markets, the application of our products and supply chains and triggering the introduction of an ever more stringent legal and regulatory environment
- Failing to listen to, and engage with, an ever-widening field of stakeholders and address their social and environmental concerns, leading to reputation and financial damage
- Not making sustainable business imperatives an integral part of economic value creation, due to variable maturity of markets, as well as real and perceived differences in risks and opportunities
- Increased instability due to a rise in national sentiment, increased public pressure to move away from globalization, increased geo-political tensions and failure of national and supranational governance, having a negative impact on business and an effective global response to climate change, or man-made environmental damage in general