Action on Climate Change: Encyclopedia II - Action on Climate Change - Business Action

Action on Climate Change - Business Action

Action on Climate Change - Increased Energy Efficiency

For many companies, looking at more efficient usage of energy can pay off in the medium to long term; unfortunately, shareholders need to be satisfied in the short term, so regulatory intervention is often required, to encourage prudent conservation measures. However, as carbon intensity starts to show up on balance books through organisations such as the carbon disclosure project, voluntary action is starting to take place.

Recently there has been a spate of companies acting to improve their energy efficiency. Possibly the most prominent of these companies is Wal-Mart. Wal-Mart, the largest retailer in the US, has announced specific environmental goals to reduce energy use in its stores and pressure its 60,000 suppliers in its worldwide supply chain to follow its lead. On energy efficiency, Wal-Mart wants to increase the fuel efficiency of its truck fleet by 25% over the next 3 years and double it within 10 years, moving from 6.5mpg. This seems an attainable goal, and by 2020 is expected to save the company $494 million a year. The company also wants to build a store that is at least 25% more energy efficient within 4 years.

Action on Climate Change - Use of Renewable Energies

Renewable Energies and Renewable Energy Technologies have many advantages over their Fossil Fuel counterparts. These advantages include the absence of local pollution such as particulates, sulphur oxides (SOX's) and nitrous oxides (NOX's). For the business community, the economic advantages are also becoming clearer. Numerous studies have shown that working environment has a significant effect on workforce morale. Renewable Energy soloutions are a part of this, wind turbines in particular being seen by many as a potent symbol of a new modernity, where environmental considerations are taken seriously. A workforce seeing a forward-looking and responsible company is more likely to feel good about working for such a company. A happier workforce is a more productive workforce.

More directly, the high oil and gas prices of 2005 have only added to the attraction of Renewable Energy sources. Although most Renewable Energies are more expensive at current fuel prices, the difference is narrowing, and uncertainty in oil and gas markets is a factor worth considering for highly energy-intensive businesses.

Another factor affecting the uptake of Renewable Energies in Europe is the EU Energy Trading Scheme (ETS or EUTS). Many large businesses are fined for increases in emissions, but can sell any 'excess' reductions they make.

Companies with high-profile Renewable Energy portfolios include an Aluminium smelter (Alcan), a cement company (Lafarge) and a microchip manufacturer (Intel). Many examples of corporate leadership in this area can be found on the website of The Climate Group, an organisation set up by the UK for promoting such action by business.

Action on Climate Change - Large-Scale Carbon Offset

The principle of Carbon Offset is fairly simple: you decide for whatever reason that you don't want to be responsible for accelerating Climate Change, you cannot afford to stop doing whatever it is you are doing, so you decide to pay someone else to take up new low-carbon technologies. Every unit of carbon that is not emitted due to your funding of Renewable Energy Technologies is seen as offsetting the emissions you are making. In many cases, encouraging uptake of Renewable Energy and Energy Efficiency schemes, particularly in developing nations, can be a relatively cheap way of making an event, a business, or a project "Carbon Neutral".

Many businesses are now looking to Carbon Offset all their work. An example of a business going Carbon Neutral is FIFA: their 2006 World Cup Final will be Carbon Neutral. FIFA estimate they are offsetting one hundred thousand tonnes of Carbon Dioxide created by the event, largely as a result of people travelling there. Other Carbon Neutral companies include the bank HSBC and the publishing house New Society Publishers; The Guardian newspaper also offsets its carbon emissions resulting from international air travel.

Adapted from the Wikipedia article "Business Action", under the G.N U Free Docmentation License. Please also see http://en.wikipedia.org/wiki