The following is the conclusion of a study published last month by the Economist Intelligence Unit, commissioned by UK Trade and Investment. Its findings suggest that UK corporations are not only running high risks in numerous areas of their businesses but are missing out on potentially important market opportunities too.
Conclusion
"Scientists calculate a 60% uncertainty in predicted global temperature increases. The foreseeable impact of CO2 on the political sphere is far clearer. As governments seek to reduce national output of CO2, business will be called on to do its share.
Companies have not yet risen to the challenge. But the public expects it. Although consumer choices do not yet strongly reflect this, reputation and brand damage await firms that do too little, and investors show signs of starting to appreciate this.
Given the relatively small net costs, it makes sense for firms to raise their game now. Carbon reduction is a complicated area, with many experiments and innovations taking place. Entrepreneurial companies will be far better prepared when governments bring in tighter carbon restrictions and are far more likely to find ways to tap into new markets when consumer choices become more closely aligned with the concerns of the public as expressed to their political representatives.
The latter have a key role to play too. If business is to take carbon reduction seriously, it needs a clear set of rules within which to work. Without a proper regulatory framework, with market-based incentives to reduce CO2, carbon reduction will never become the integral part of business operations that it needs to be if it is to have a positive effect on climate change."
Let's see what next week's G8 deliberations bring...
The full report - 'A Change in the Climate' - can be found here:
http://a330.g.akamai.net/7/330/25828/20070511180304/graphics.eiu.com/upload/portal/climate.pdf
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