Business & Sustainability - Case Ubs
Business & Sustainability
Business and Climate Change
§ 1.0 Introduction
Although research on climate change is quite vague about the exact degree of warming and the consequences for the natural environment, a wide range of impacts can be expected (Metz, 2011). The temperature changes and the sea level rise, this has a negative impact on food production, water availability, human health, biological environment and infrastructure in coastal areas. Vulnerability is highest in poor countries where the changes will have a devastating effect. Metz (2011) states that there is no escape from the conclusion that human beings are responsible. As a consequence, the general opinion imposes responsibility for companies to put effort in reducing their carbon emission.
Several companies and industries are trying or have the intention to implement their strategy e.g. to reduce carbon emission. The company UBS is seriously active in corporate responsibility (CR) for some time. However, according to environmental specialists and senior executives at UBS, UBS lagged behind its competitors concerning their public commitment to help mitigate global warning. The working group suggested the adoption of a more progressive policy. Policy options range from stabilizing UBS’ current carbon emission, which means no CO2 reduction, to carbon neutrality, which means 100% CO2 reduction. In line with the feelings of Marco Suter, chairman of the UBS Corporate Responsibility Committee, this paper emphasizes the importance of climate change issues for financial service companies. Since numerous corporate scandals sent shock waves through the global economy, clients, the media and financial analysts pay greater attentions to companies CR programs. Employees and executives believe that companies should contribute to the broader public good. As a consequence, numerous business opportunities emerge in the field of CR. Moreover, stakeholders’ expectations increasingly concern climate
Business and Climate Change
§ 1.0 Introduction
Although research on climate change is quite vague about the exact degree of warming and the consequences for the natural environment, a wide range of impacts can be expected (Metz, 2011). The temperature changes and the sea level rise, this has a negative impact on food production, water availability, human health, biological environment and infrastructure in coastal areas. Vulnerability is highest in poor countries where the changes will have a devastating effect. Metz (2011) states that there is no escape from the conclusion that human beings are responsible. As a consequence, the general opinion imposes responsibility for companies to put effort in reducing their carbon emission.
Several companies and industries are trying or have the intention to implement their strategy e.g. to reduce carbon emission. The company UBS is seriously active in corporate responsibility (CR) for some time. However, according to environmental specialists and senior executives at UBS, UBS lagged behind its competitors concerning their public commitment to help mitigate global warning. The working group suggested the adoption of a more progressive policy. Policy options range from stabilizing UBS’ current carbon emission, which means no CO2 reduction, to carbon neutrality, which means 100% CO2 reduction. In line with the feelings of Marco Suter, chairman of the UBS Corporate Responsibility Committee, this paper emphasizes the importance of climate change issues for financial service companies. Since numerous corporate scandals sent shock waves through the global economy, clients, the media and financial analysts pay greater attentions to companies CR programs. Employees and executives believe that companies should contribute to the broader public good. As a consequence, numerous business opportunities emerge in the field of CR. Moreover, stakeholders’ expectations increasingly concern climate
Bibliography: * Metz, B. 2011. Climate change and its impacts: a short summary. In B.Metz. Controlling Climate Change. Cambridge University Press, pp. 1‐29. * Metz, B. 2011. Policies and measures. In B.Metz. Controlling Climate Change: Cambridge University Press, pp. 287‐317. * Hoffman, A. 2005. Climate‐change strategy: the business logic behind voluntary greenhouse gas reductions. California Management Review, 47(3), 21‐46. 5/6 * Rugman, A. M., & Verbeke, A. 1998. Corporate strategies and environmental regulations: an organizing framework. Strategic Management Journal, 19(4), 363‐375. * Kolk, A., & Pinkse, J. 2005. Business Responses to Climate Change. California Management Review, 47(3): 6‐20.