RED FLAG # 13
The business’s commercial success substantially depends upon: Depleting or polluting natural resources or public goods such that it undermines access or health.
For Example
- Industrial activity that leads to pollution of the environment (i.e., water, biodiversity, soil and/or air) at levels that – even if within legal limits – have an impact on people’s health
- Manufacture/sale of products that release pollutants such as “forever chemicals” or materials that could contribute to micro-plastic accumulation
- Harvesting or destruction (including through introduction of invasive species) of wild flora and fauna by agricultural or pharmaceutical companies depleting traditional food sources on which indigenous and other communities rely
- Land-based extractive projects that lead to an influx of people that places stress on ecosystem and human services, such as in communities near mine sites
- Extractive industries (terrestrial and marine), industrial fishing, or aquaculture projects that negatively impact marine ecology on which fishing communities depend for their livelihoods
- Companies, including technology companies, establishing large corporate headquarters in urban areas where this reduces access to affordable housing
- Water extraction by food and agribusiness, beverage, apparel or technology companies leading to water stress in a given catchment
Higher-Risk sectors
- Extractive industries (terrestrial and marine)
- Energy production and distribution
- Chemicals manufacturing, including petrochemicals and plastics manufacturing
- Large-scale infrastructure projects, e.g. hydropower projects, construction projects
- Manufacturing, including metals, electronics, aerospace and automotive manufacturing
- Technology
- Fisheries and aquaculture
- Apparel and textiles
- Food and beverage
- Agribusiness, forestry, and industries that rely on agricultural commodities
- Consumer products, including health and beauty products and supplement products which incorporate natural resources relied upon by indigenous populations
Business Model Red Flags
Tool for Indicator Design



