In Sustainability, the cost on “NOT DOING” isn’t equal to “ZERO”
‘HEDGE, in the financial perspective, is an operation on buying or selling into the future market that aims to neutralize – as much as possible – the risks of another financial operation. It serves as a sort of “insurance” for high risk and high volatility operations (for instance, exchange rate based operations, stock market or commodity trading).’
‘In the same way a traditional hedge seeks to balance the financial position of an investor over the time – with the trade-off of some calculated loss in the margins (…), the assumed costs regarding preventive environmental control and corporate social responsibility by any operation of high risk potential play the part of such insurance; in other words, a hedge. It must decrease to acceptable levels the risks on operational discontinuity of the organization, temporary suspension or canceling of environmental permits, imputation of obligations on remediation, fines, indemnifications and compensations to third parties, as well as it shall reduce marginal costs – tangible and intangible – related to the corporate image recovery.’ *
To guarantee to our clients the technical and legal certainty and the best alternative of action in case of social-environmental conflicts that could put in risk their businesses and reputation.
*Extracted from Castro,L.C.F., Meio Ambiente como Suporte ao Negócio – Receitas, Custos e Hedge, in Anais do I CADMA – Congresso Acadêmico de Meio Ambiente e Desenvolvimento do Rio de Janeiro. Editora FGV, Rio de Janeiro, 2004. 16p. il.