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Commerce and Climate

Climate Change. A tedious turn-off that you've already heard too much about? A real threat? An excuse for more taxes and more infernal government meddling?

To some extent it's probably all of those things. Regardless, the pressures on businesses to 'do something' about their carbon footprint are already significant - and they are only going to grow.

What you as a business owner or manager might feel about climate change isn't the issue. The point is, it's increasingly likely that your customers expect you to be climate friendly and - just as important - to be able to prove that you are. Sooner or later, failing to act will probably result in declining or lost sales, and no business can survive for long in those circumstances.

Yeah, Right

Not convinced? A world-wide poll by the BBC World Service (Sept 2007) found that in the UK almost "four out of five respondents (78%) believe that human activities such as industry and transportation are a significant cause of climate change. A large majority (70%) believes major steps should be taken in the immediate future to reduce the impact of these activities". If you trade internationally, the picture is similar almost everywhere. (You can read the full report here.)

Whatever the stance of governments, people world-wide want action. Businesses are expected to act.

A Rock And A Hard Place

If customer expectations are the 'rock', then the cost implications of climate change are likely to be the 'hard place'.

Again without considering the ins and outs of climate change itself, even if your customers weren't concerned about your business' carbon footprint, you can be sure that the government is looking at it from a future taxation point of view - with a stick and carrot approach the most likely. The bigger your carbon footprint, the more you'll be taxed.

Whatever size business you are, if nothing else, reducing your carbon footprint makes sense financially, to your bottom line. It nearly always means your costs are coming down, as well as your C02 emissions.

For larger companies, the climate change levy means C02 emissions already represent a real business cost that's only going to grow. Investors and analysts are also recognising this - they are starting to look at carbon assets and liabilities as they would any other item on a company's balance sheet.

No Time Like The Present

Taken together, pressure from customers, government taxes and the fact that you can improve your own profitability by cutting your carbon emissions, collectively mean it's not an exaggeration to say that we're at the point where businesses have to do something about their carbon footprint. Employers shouldn't underestimate the issue of attracting and retaining the right staff either - working for a 'carbon polluter' is becoming unappealing.

And as always, the quicker you act to deal with a problem, the less of a problem it is.