Assessing the Implications of Climate Change on Business Strategy for the Future
Assessing the implications of climate change on business strategy for the future | Paper presentation, Windows 2010@Essar | | Climate change has introduced another significant variable in an already complex global business environment. In a global economy where the effects of climate change are increasingly being felt, organizations have to be prepared with their own strategy to factor in and use climate change as a tool for competitive advantage in the future. This paper while examining the implications of climate change for businesses in the future, suggests a broad strategy that organizations may use for their future sustenance and growth. | | Harshavardhan, Bed Prakash Das , IIM Calcutta | 5/18/2010 | |
BACKGROUND
The last two years have been a highly turbulent period for businesses worldwide, with the collapse of the financial markets in the US and a prolonged recession. The churn caused by the financial crisis has led to increased regulations, greater public scrutiny of businesses and a worldwide demand for supporting businesses that have a human face. In this context, climate change has become an important variable which shapes the way businesses run, with the potential of turning into the most significant factor which will influence the way businesses run. The climate change debate is no longer about its existence; it has evolved to a priority level where key stakeholders are deciding on how to react to the dynamic challenges that climate change poses.
As an organization which is growing at the rate we are and with the nature of energy intensive businesses we are in to, evolving a long term position on climate change assumes strategic importance for us.
WHY CLIMATE CHANGE WILL DRIVE BUSINESS DECISIONS OF THE FUTURE
There are some key factors which we believe will lead to climate change becoming a key driver of business decisions of the future
IMPACT OF BUSINESS ON ENVIRONMENT
Energy Information Administration (EIA) estimates show
BACKGROUND
The last two years have been a highly turbulent period for businesses worldwide, with the collapse of the financial markets in the US and a prolonged recession. The churn caused by the financial crisis has led to increased regulations, greater public scrutiny of businesses and a worldwide demand for supporting businesses that have a human face. In this context, climate change has become an important variable which shapes the way businesses run, with the potential of turning into the most significant factor which will influence the way businesses run. The climate change debate is no longer about its existence; it has evolved to a priority level where key stakeholders are deciding on how to react to the dynamic challenges that climate change poses.
As an organization which is growing at the rate we are and with the nature of energy intensive businesses we are in to, evolving a long term position on climate change assumes strategic importance for us.
WHY CLIMATE CHANGE WILL DRIVE BUSINESS DECISIONS OF THE FUTURE
There are some key factors which we believe will lead to climate change becoming a key driver of business decisions of the future
IMPACT OF BUSINESS ON ENVIRONMENT
Energy Information Administration (EIA) estimates show
References: Source: McKinsey and Vatenfall(AB) combined study on carbon footprint reduction,2007 Exhibit 1: World Marketed Energy Consumption by Region, 2004-2030 (Quadrillion BTU)