If you are not at the table, you are on the menu. The Oklahoma saying has been used aptly by strategic thinkers Andrew Hoffman and John Woody in ‘Climate Change: What’s Your Business Strategy’ (Harvard Business Press) to explain why businesses need to engage with governments on environmental issues. The reasons are compelling. Climate change rules and regulations are being laid down globally as well as nationally. These will impact all of us, including businesses, creating a new set of winners and losers. So, to protect or advance their interests, it’s desirable for businesses to engage with policymakers on the issue. If businesses can’t influence climate policies and legislations, they can at least get a fair idea about what’s on the agenda and prepare accordingly.
In fact, multinationals are already trying to guide the global climate change agenda. Last week, the World Business Summit on Climate Change put on table its demand for bold emission reduction targets in the new climate change treaty. The summit was attended by 500 business leaders, including a handful of Indians. Admitting that it will affect business, the leaders in their Copenhagen Call said that they will stand by ambitious targets for the sake of low-carbon growth. The recommendation will be presented to climate change negotiators in time for the Copenhagen climate change talks to be held in December.
The issues don’t pertain to only proactive global companies, but all businesses in the country. The Indian governments position on keeping per capita greenhouse gas emissions below those of industrialised countries and resisting pressure to take on binding emission targets may serve the interests of businesses in the country in the short run, but it won’t do so in the long run.
Climate-friendliness is not only about reducing emissions, it’s also about increasing energy efficiency and optimising the use of natural resources. Besides, Indian businesses are competing globally with the best, which are likely to favour climate friendly companies. The market out there is big. The global low-carbon and environmental goods and services market has been estimated at 19 billion by a recent British government report. HSBC estimates that worldwide fiscal stimulus packages include more than $430 billion for climate change initiatives.
There is not only a business case for acquiring a climate-friendly competitive edge, but also an urgency to do so for businesses to stay ahead of the curve. As the new government gets its act together to plan for the present, FE got business leaders from across sectors to lay down the low-carbon path for high growth for Corporate India.
Source: The Financial Express
Published on 05 June 2009