Check out our FREE Resources page – Download complimentary business frameworks, PowerPoint templates, whitepapers, and more.







Flevy Management Insights Q&A
What is ongoing environmental resource management called?


This article provides a detailed response to: What is ongoing environmental resource management called? For a comprehensive understanding of Corporate Sustainability, we also include relevant case studies for further reading and links to Corporate Sustainability best practice resources.

TLDR Environmental Resource Management (ERM) is a strategic, ongoing process integrating environmental considerations into organizational operations, leveraging Leadership, technology, and data analytics for sustainable practices.

Reading time: 4 minutes


The process of managing environmental resources on an ongoing basis is a critical aspect of sustainable business practices and is commonly referred to as Environmental Resource Management (ERM). This strategic approach is designed to ensure that an organization's use of natural resources and its overall environmental impact are managed in a way that is sustainable, responsible, and aligned with both regulatory requirements and corporate social responsibility goals. ERM encompasses a broad range of activities, from pollution prevention and energy efficiency to biodiversity conservation and ecosystem services management. It requires a comprehensive framework that integrates environmental considerations into every facet of an organization's operations, decision-making processes, and strategic planning.

At the core of effective ERM is the development of a robust framework that guides the organization in identifying, assessing, and managing environmental risks and opportunities. Leading consulting firms, such as McKinsey and Deloitte, emphasize the importance of a holistic approach that combines strategic planning with operational excellence. This involves not only compliance with environmental regulations but also the adoption of proactive strategies that can lead to operational efficiencies, cost savings, and enhanced brand reputation. A successful ERM strategy leverages cross-functional collaboration, cutting-edge technology, and data analytics to monitor environmental performance and drive continuous improvement.

Implementing an ERM framework requires a structured approach that begins with a clear understanding of the organization's environmental footprint and the external pressures it faces. This includes regulatory requirements, customer expectations, and the broader societal demand for sustainability. From there, organizations can develop a tailored ERM strategy that aligns with their specific goals and challenges. This strategy serves as a template for action, outlining key priorities, resource allocations, and performance metrics. Regular monitoring and reporting ensure that the organization remains on track and can adapt to changing circumstances, making ERM an ongoing process rather than a one-time initiative.

Key Components of an Effective ERM Strategy

An effective ERM strategy is built on several key components that ensure its success. First and foremost is the commitment from top management. Without the buy-in and active support of C-level executives, ERM initiatives are unlikely to gain the traction needed for meaningful change. This leadership commitment must be backed by the allocation of necessary resources—both financial and human—to implement and sustain ERM activities.

Another critical component is the integration of ERM into the organization's overall strategic planning and operational processes. This ensures that environmental considerations are not siloed but are instead woven into the fabric of the organization's decision-making. It also facilitates the identification of synergies between environmental goals and business objectives, such as cost savings from energy efficiency improvements or revenue opportunities from sustainable product offerings.

Technology and data analytics play a pivotal role in modern ERM strategies. They provide the tools necessary for tracking environmental performance, identifying trends, and predicting future impacts. Advanced analytics can help organizations optimize resource use, reduce waste, and minimize their environmental footprint. Additionally, technology enables more transparent and effective communication with stakeholders, including customers, regulators, and the public, about the organization's environmental efforts and achievements.

Learn more about Strategic Planning Data Analytics Effective Communication Leadership

Are you familiar with Flevy? We are you shortcut to immediate value.
Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab

Real-World Examples of Successful ERM

Many organizations have successfully integrated ERM into their operations, demonstrating the tangible benefits of this approach. For instance, a major multinational corporation implemented a comprehensive ERM framework that focused on reducing water usage across its global operations. Through a combination of technological innovations, process improvements, and employee engagement initiatives, the company significantly reduced its water consumption, resulting in substantial cost savings and a reduced environmental footprint.

Another example involves a leading energy company that adopted an ERM strategy to manage its greenhouse gas emissions. By investing in renewable energy sources, improving energy efficiency, and engaging in carbon offsetting projects, the company was able to meet its ambitious emission reduction targets ahead of schedule. This not only enhanced its regulatory compliance but also strengthened its market position and brand reputation as a leader in sustainability.

In conclusion, Environmental Resource Management is a comprehensive and ongoing process that requires a strategic framework, committed leadership, and the integration of technology and data analytics. By adopting ERM, organizations can not only mitigate environmental risks but also seize opportunities for innovation, efficiency, and competitive differentiation. As environmental concerns continue to rise on the global agenda, ERM will remain a critical component of sustainable business practices, offering a path forward for organizations seeking to balance economic success with environmental stewardship.

Learn more about Process Improvement Employee Engagement Resource Management

Best Practices in Corporate Sustainability

Here are best practices relevant to Corporate Sustainability from the Flevy Marketplace. View all our Corporate Sustainability materials here.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.

Explore all of our best practices in: Corporate Sustainability

Corporate Sustainability Case Studies

For a practical understanding of Corporate Sustainability, take a look at these case studies.

Carbon Footprint Reduction in Power & Utilities

Scenario: The organization is a mid-sized power generation company in the renewable sector, facing substantial pressure to further reduce its carbon footprint amidst tightening environmental regulations and increasing market competition.

Read Full Case Study

Sustainable Operations Enhancement in Power & Utilities

Scenario: The organization operates within the Power & Utilities sector and is facing challenges in aligning its operational practices with the increasing demand for Corporate Sustainability.

Read Full Case Study

Sustainable Growth Strategy for Agritech Firm in North America

Scenario: An agritech firm operating in North America is grappling with integrating sustainable practices into their rapidly scaling operations.

Read Full Case Study

Sustainable Strategy Initiative for Luxury Fashion Retailer

Scenario: A firm specializing in luxury fashion retail is facing challenges in aligning its business operations with the principles of Corporate Sustainability.

Read Full Case Study

Sustainability Optimization for a Global Food Production Company

Scenario: A global food production company, striving to become a leader in the industry, is facing challenges in integrating Sustainability into their core operations.

Read Full Case Study

Sustainability Transformation for a Global Beverage Producer

Scenario: A multinational beverage producer with operations in over 80 countries is grappling with sustainability challenges.

Read Full Case Study

Explore all Flevy Management Case Studies

Related Questions

Here are our additional questions you may be interested in.

What are the key challenges in aligning corporate sustainability goals with global supply chain operations?
Aligning corporate sustainability goals with global supply chains involves tackling complexity, regulatory divergence, and supplier engagement through Strategic Planning, Innovation, and Collaboration. [Read full explanation]
How is the rise of green finance influencing corporate sustainability strategies?
The rise of green finance is reshaping corporate sustainability strategies by emphasizing ESG integration, driving innovation in sustainable technologies, and pushing companies to align operations with sustainability goals for competitive advantage. [Read full explanation]
In what ways can sustainability efforts help in attracting and retaining top talent?
Sustainability Efforts Boost Talent Attraction and Retention by Aligning with Workforce Values, Enhancing Employer Brand, and Fostering Employee Engagement and Corporate Responsibility. [Read full explanation]
How can organizations navigate the regulatory landscape regarding sustainability reporting and compliance?
Organizations can navigate the sustainability reporting and compliance landscape through Strategic Planning, understanding regulatory environments, integrating sustainability into corporate strategy, and leveraging technology and data analytics for effective reporting and competitive advantage. [Read full explanation]
What role does blockchain technology play in enhancing transparency in sustainability practices?
Blockchain technology enhances Supply Chain Transparency, facilitates Carbon Footprint Tracking and Trading, and improves Stakeholder Engagement and Reporting, supporting organizations in achieving Sustainability Goals. [Read full explanation]
What strategies can businesses employ to foster a culture of sustainability among employees and stakeholders?
Businesses can foster a culture of sustainability by integrating it into Corporate Strategy, engaging and educating employees, building sustainable supply chains, and actively engaging stakeholders to drive long-term value creation. [Read full explanation]

Source: Executive Q&A: Corporate Sustainability Questions, Flevy Management Insights, 2024


Flevy is the world's largest knowledge base of best practices.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.




Read Customer Testimonials



Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.