Supporting the environmental aspects of sustainable projects via risk management

Risk management is about understanding and controlling factors that may negatively impact a project and is an important planning stage of any project. On a sustainable project – where there is an intention to solve the current problem without compromising or overburdening future generations – it is especially important.

Sustainable projects seek to solve problems now without adversely impacting future groups. To do this, they need to carefully consider the current project environment and the impacts that the project might have. Understanding the risks related to sustainability in a project environment, including environmental, social, economic and administrative aspects, helps the project manager and project team to plan and mitigate against the derailment of the project.

Failure to acknowledge sustainability-related risks and manage them appropriately if they materialise, can have severe consequences. Whilst there may be disruptions to the project, failing to comply with environmental regulations can mean the permanent stoppage of the project. It could also lead to reputational damage to the project manager and their organisation, impacting their ability to complete sustainable projects in the future.

Supporting thorough project planning

Risk management on sustainable projects helps to support thorough project planning. From the outset, understanding project-specific sustainability risks gives the project manager and project team a greater insight into the project and the factors that might threaten its success.

A project might start with a PESTLE analysis, to understand the operating environment and the various external factors that might impact the project (Political, Economic, Sociological, Technological, Legal and Environmental). This can help with initial risk identification and provide guidance to the project team of threat areas to be aware of.

When the project manager initiates formal risk management, there is already a starting point for risk identification. Alongside other methods, such as brainstorming or interviewing experts, the project team can identify the risks to the project and build up a complete picture of the threats it may face. From a sustainability standpoint, this means identifying the risks that would threaten the completion of the project now and looking ahead to those risks that might threaten the longevity of the project in other ways, such as its economic viability or social impact.

For example, if a project manager had completed a PESTLE analysis and understood that there were specific requirements around operating in the physical working environment, they might seek out guidance such as the UK government advice on construction near protected areas and wildlife. This might be supported by interviewing an ecologist or other environmental expert for tailored guidance during the formal risk identification phase. Taking this action will help the project to better plan their approach with the relevant rules and regulations in mind, with the intention of being able to avoid impinging on any legislation related to the environment and wildlife.

Adhering to legislation, rules and regulations

It’s essential that projects with a sustainability focus adhere to legislation, rules and regulations. The penalties for ignoring the rules can impact not only the current project, but potentially future projects and organisational reputation.

Risk management can help with identifying the appropriate risks and pointing the project manager and project team towards the guidelines and support needed to complete the project within those guidelines.

If we consider the example of working in a protected area, as part of the risk identification process the project manager may have identified that the presence of Great Crested Newts might cause delays to the project, as they cannot be disturbed according to government guidance. The next step would be to assess the probability and impact of that risk and then plan an appropriate response.

As part of the response planning, the project manager may seek out advice on activities that might impact the newts and what actions can be taken (such as adjusting plans or obtaining licenses) to avoid disrupting the project. The economic viability of the project would be important here – although the environment is the focus, sustainability of a project focuses on the whole picture, and spending too much on one element may impact the overall project, including its ability to fulfil sustainability goals. Equally, spending money now to support one sustainability goal may be beneficial to the entire project, so a balance needs to be struck.

Identifying risks to the project helps project managers to understand the appropriate sustainability guidance that they need to follow. They can then plan responses that will support the sustainable aim of not adversely impacting the current environment. Although they may need to seek further advice, prompting sustainable thinking as part of risk management demonstrates a commitment to responsible and sustainable project planning and consideration for the project environment.

Managing environmental impact

Risk management also supports sustainable projects by encouraging the management of the environmental impact. Risk identification will help to clarify the areas that the project will need to focus on, which may include impact on the local environment and wildlife.

Having a robust risk management plan in place, with appropriate responses to the risks, will ensure that the project team is aware of the environmental impact that the project will have. In the case of the Great Crested Newts, an awareness of the sustainability risks that the project faces – such as working around them and protecting their habitats – will support the project team in managing the environmental impact of the project. This will be done via thorough project planning, but risk management will address specific areas of concern and encourage sustainable thinking to ensure that the proposed responses if the risk matures consider the project environment and follow the sustainable idea of not ‘overburdening future generations’ by damaging the current environment.

Greater awareness of the specific rules and regulations and an understanding of how to appropriately manage constraints will encourage clearer project planning and support a better long-term outcome for the environment.