Sustainability's Role in Capital Allocation for the Long-Term

Blog by Julie Urlaub, Founder and Managing Partner at Taiga Company
Mar 2, 2011 2:22 PM ET

Taiga Company blog by Julie Urlaub, Founder and Managing Partner at Taiga Compa…

In today’s increasingly positive business environment, companies are seeking to increase their spending and have higher expectations for more immediate return on their investments.  Specifically, executives and their business stakeholders want to know: will I get the value from my capital program?   

Reflected in many analyst reports and year end summaries, the corporate world is about to witness one of the largest shifts in capital spending in the history of the modern business.  As the economy emerges from its economic slumber, companies are ramping up to spend record amounts of cash.  With many potential pitfalls looming, are executives considering long-term business sustainability criteria in their actions?   To make the right moves in what is sure to be an investment ‘gold-rush’, our sustainability consulting advises executives to establish a business sustainability framework to ensure cash allocation decisions leverage the past and are focused on the long-term future.  Some common points of consideration include:   •    Define, communicate and implement a consistent ‘sustainability’ risk tolerance into capital deployment.   •    Evaluate long-term flexibility and business sustainability ahead of short-term investor return.  Click here to continue reading.
 

Home to one third of the earth's trees, the Taiga is the largest land-based biosphere and encircles the globe. Its immense oxygen production literally changes the atmosphere and refreshes the planet. It is this continuous renewal that has shaped Taiga Company's vision to drive similar change in the business world. Taiga Company seeks to be the "oxygen for your business".

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