You are a strategy director at a manufacturing firm. The boa…
You are a strategy director at a manufacturing firm. The board has asked you to evaluate integrating Environmental Capital—the natural resources the company depends on—into its long-term strategic plan. Currently, the company treats water, raw materials, and energy as unlimited inputs. Your analysis shows the primary raw material comes from a drought-prone region, two major customers now require suppliers to report carbon emissions, and proposed federal regulations would cap industrial water usage within five years. Which of the following best captures the primary strategic advantage of integrating Environmental Capital into the company’s business model?