Business Solution to Climate Change
- Towards a low carbon economy

Now is the time to change your business culture.
Climate change is prompting companies to re-strategies their business approach. Those in the forefront to adopt a low carbon strategy with comprehensive environment governance policies to reduce greenhouse gas (GHG) emissions are most likely to seize related businesses and evolve industry winners.

To mobilize business action on climate change, the United Nations Global Compact (UNGC), together with United Nations Environment Programme (UNEP) and
the World Business Council for Sustainable Development (WBCSD) has developed:
Caring for Climate: The Business Leadership Platform. It provides an accounting tool for government and business to understand, quantify, manage and report greenhouse gas emissions in an accountable and trusted way. This accounting process helps companies to improve its portfolio of emissions and steer it away from possible financial loss incurred as penalties under future emissions regulations.

Participation involving some of the world's largest transnational corporations was overwhelming. Many have implemented energy efficiency programs of varying depth and quality, from reducing air conditioning and electricity usage, practicing 3Rs, wireless banking, tele-conferencing, paperless office, retro-fitting office buildings, to working from home... etc.

In the manufacturing sector, significant GHG emissions will incur higher business cost (operational or production). Sales may decline thus. In addition, purchasers are increasingly more committed to the role they play as a responsible consumers, not to support products with doubtful life cycle environmental impacts.

Every line in a business embodies carbon to varying degree: R&D, design, raw material, production, buildings, fittings, equipments, management, distribution, marketing and communication. Many companies are setting procurement guidelines that include environmental requirements of low carbon or no carbon products and services. Sourcing material from companies adhering to internationally certified standards helps to mitigate risk of unacceptable environmental practice (logging, deforestation) from supply chains.

As an example, paper production line has been a major GHG emitter throughout its entire life cycle, from deforestation to energy intensive mill processing, disposal and decomposition in landfills. Increasing demands for environmentally friendly manufactured papers have prompted paper companies to develop these eco-papers papers for all purposes. The final edition of Harry Potter series is touted as the greenest book in publishing history, printed on ecopapers with significant measurable climate and forest benefits.

Capturing Business Opportunities

Among the climate action corporate pioneers, there is a shift from risk management and emissions reduction strategies to energy efficiency, low carbon, no carbon products and services.

Business solution means business opportunities. Business is increasingly seeing opportunities in tackling climate change. Sectors with big carbon dioxide emitters: land use change, electricity, construction and manufacturing are sources with enormous development and financial returns in the course of climate change mitigation engagements. (Fig.: GHG Emissions by Sector in 2004 - IPCC)

The following are some of the many corporate actions taken to reduce ghg. Ancillary benefits are the reduced costs below those of industry competitors and business growth:

Bell Canada by facilitating 2.7 million teleconferences for its customers, saved 142 000 tonnes of carbon dioxide emissions annually.

US retail giant Wal-Mart worked with one of the toy suppliers to help them reduce packaging on just 16 items. The suppliers saved on packaging costs while Wal-Mart used 230 fewer shipping containers

The Carbon Trust carbon footprint and labeling initiative has supported the development of standards and guidance to help companies measure, reduce and communicate the lifecycle GHG emissions (carbon footprint) of products (including goods and services). The aim of the initiative was to drive action in companies to reduce emissions across the value chain through transparent, robust and consistent information that serves as a basis for sound decision-making by business, consumers and other stakeholders. (Pic: The Botanics range of shampoos is the first of the Boots products to carry the carbon label of the Carbon Trust.)

Baxter's reviews company's manufacturing facilities, maintains energy use standards and researches and communicates best practices in energy conservation, and saved USD 4.3 million energy costs.

Seventh Generation, the leading brand of green cleaners, laundry detergent, dishwashing soap, diapers, baby wipes, tampons, recycled toilet paper, tissues, and paper towels, announced that it has purchased enough sustainable palm kernel oil CERs to cover all of the palm kernel oil it uses in its products. In purchasing the credits, Seventh Generation is paying a premium to palm kernel oil producers that use more sustainable production and harvesting practices in order to help them develop programs and infrastructure to expand sustainable actions. (Published March 17, 2009 GreenBiz.com)

 

Climate Savers Show How to Grow Businesses While Cutting GHGs: WBCSD
GreenBiz.com, 27 March 2009 - Twenty-one of some the world's best known companies intend to reduce their greenhouse gas emissions by a collective 50 million tons by 2010.

Their names include Sony, HP, Polaroid, Coca-Cola. Tetra Pak, Nike and JohnsonDiversey, among others. Their achievements deliver a message: Companies can reduce emissions without sacrificing growth or the bottom line.

Energy efficiency efforts at Johnson and Johnson over the last decade, for example, have generated roughly $50 million in annualized savings; its emissions reduction initiatives produce an 17% average internal rate of return. Its Climate Savers commitment involves a 7% emissions reduction below 1990 levels by 2010.

Tetra Pak, a food processing and packaging company based in Sweden, has been able to hold energy consumption to 2002 levels despite the fact that its packaging production has grown 32% since then. The company surpassed its 2010 goal of reducing emissions 10 percent below 2005 levels last year...

 

Business Can Help Build Tomorrow's Low-Carbon Economy Today: Statements to the G20  Leaders: WBCSD

Global business leaders and experts in finance, economics and climate change have responded rapidly to the invitation from British PM Gordon Brown early 2009 at the World Economic Forum to form a business-expert Task Force on Low Carbon Prosperity to report to the London Summit. Over 75 international companies and expert organizations are ready to work with officials from the G20 on these matters.

Key conversations they wish to have include:

How can market mechanisms best be developed to create a price for carbon that takes its true cost into account?

How can governments and businesses work together to offer consumers real choice and effective standards in low-carbon products, technologies and services?

How can energy efficiency measures best be scaled up globally? What does a smarter, lean-energy economy look like, and what technologies and policies do we need to invest in to get there?

And crucially in today's world, how can we get investment flowing into the technologies that will deliver jobs and cleaner, more secure energy, especially in developing countries?

The Pew Center's Business Environmental Leadership Council (BELC) believes that voluntary action alone will not be enough to address the climate challenge, rather, business engagement is critical for developing efficient, effective solutions to the climate change problem. Companies need to take early action on climate strategies and policy, to gain sustained competitive advantage over industry peers.

Starting with 13 companies in 1998, the BELC is now the largest U.S.-based association of corporations focused on addressing climate change and supporting mandatory climate policy. The BELC includes 44 mainly Fortune 500 companies with combined revenues of over $2 trillion and over 4 million employees. Many different sectors are represented, from high technology to diversified manufacturing; from oil and gas to transportation; from utilities to chemicals.

References and related news:

Climateactionprogrammebooks/2007
Carbonneutral
World Business Council for Sustainable Development: WBCSD
Pewclimate.org
Corporate Social Responsibility News
PepsiCo Launches Industry's Lightest Water Bottle
Siemens Sees Boost in Green Products - Paper
The Carbon Trust Carbon Footprint and Labelling : Carbontrust

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