DEVELOPING A PLAN FOR THE PLANET
A BUSINESS PLAN FOR SUSTAINABLE LIVING
IAN CHAMBERS & JOHN HUMBLE
GOWER 2011
The Green Economics and Sustainable Growth Series
PART 8
Chapter 3: Executive Brief No. 2: Climate Change (Cont)
The role of Government, Business and people
BUSINESS
Why is it important that business takes an active part in addressing Climate Change? There are three key reasons: Contribution; Innovation and finance; Cost savings and efficiency….
THE ARROW APPROACH
There are a range of options which can be used to address the challenge of Climate Change for business. These opportunities for moving towards non-carbon-based energy supplies can be best summarised using what can be called the ‘ARROW’ strategies. However, before these strategies are deployed, it is essential to review the current status of the business with a Carbon Footprint Audit. This identifies strengths and weaknesses, opportunities and threats in relation to Climate Change and related issues for each business. From this the priorities for attention can be identified and the following approaches implemented using the ARROW framework: Avoid; Reduce; Replace; Offset, Watch and adjust….
A greener world using information and communications technology (ICT)
PEOPLE
In the UK household usage contributes to an estimated 30% of national energy consumption. It is therefore important to look at the strategies that people, particularly in the top 20 countries, can use to reduce their personal carbon footprints. The table below outlines average UK household usage: …
Focus
A quick review of the following table shows that a major difference can be made by focusing on the key areas which can make the most impact – electricity supplies, air travel and car transportation. Addressing these three key areas could contribute to a target reduction of over 50% over the next 10 years in a typical UK household. If every household in the UK undertook this challenge, the impact on greenhouse gas emissions in the UK could be quite significant. So let’s look at some ways this could be achieved: Renewable energy supplier; Reduce or offset air travel; Reduce car emissions ….
These three strategies alone, some of which can be implemented immediately, and some of which can be phased in over time, would bring the total effective emissions reduction to over 50% by 2020 per household – well above the EU target of 20% in a similar period.
Further reductions
Solar-powered clothes drying
Greenhouse reabsorption
Climatexhange – an Oxfordshire partnership
Chapter 4: Executive Brief No. 3: Energy Supplies
Chapter 5: Executive Brief No. 4: Water and Food Supplies
Chapter 6: Executive Brief No. 5: Planet Sustainability and Biodiversity
Chapter 7: Executive Brief No. 6: Extreme Poverty
Chapter 8: Executive Brief No. 7: Global Health
Chapter 9: Executive Brief No. 8: Universal Education
Chapter 10: Executive Brief No. 9: Conflict and Peace
Chapter 11: Executive Brief No. 10: Financing a Sustainable World
Chapter 12: Executive Brief No. 11: The Challenge of Interconnectivity – The Perfect Storm or the Perfect Opportunity?
PART III: DEVELOPING A PLAN FOR THE PLANET
PART IV: MANAGING A PLAN FOR THE PLANET
PART V: DELIVERING A PLAN FOR THE PLANET
Chapter 25: Delivering Our Plan for the Planet
Epilogue
The global economic downturn has exposed the extent to which markets and societies are increasingly interconnected and interdependent. We the participants of the B4E (Business for the Environment), recognise that the economic, environmental and social challenges and risks we face demand a new level of leadership and cooperation.
We are confident that by exercising such leadership, restoring trust and by working together we have the opportunity to put our global economy, our markets and lifestyles and security, and, ultimately our planet on a sustainable path.
The Green Imperative, B4E Summit, Paris (2009)
The financial crisis and economic downturn have dominated the thoughts and action of leaders of all international and national governments and businesses.
At first sight this is negative news for the focus and investment in dealing urgently with the global challenges.
Global setbacks … and future opportunities in the age of green economics.
Governments facing pressures to maintain the living standards of citizens and aware of the political risks of increasing taxes may well delay or reduce their promised payments to help those in poverty. Businesses fighting for their survival may reduce their commitments to greenhouse emissions and downgrade their efforts in corporate social responsibility.
Our view is that governments will temporarily fail to fully honour their pledges at a time when crucial decisions which influence the survival of life on this planet in the long term have to be made now. When the immediate panic and crises reduce, as they will, the realisation that these challenges are not an optional extra but are of fundamental importance will return.
For example, there is no escaping the enormous economic challenge of transforming the world’s energy source to zero carbon systems and reducing gashouse emissions. The Obama administration is dedicating over $150 billion in green infrastructure investments over the next ten years. Short-term problems can not disguise the huge future opportunities. Ban Ki-moon, UN Secretary General, puts this in historic perspective: ‘We have experienced great economic transformations throughout history: the industrial revolution, the technology revolution, and the era of globalisation. We are now on the threshold of another – the age of green economics.’
The challenge of the world’s poor
World Bank President, Robert Zoellick, insists that global finance leaders ‘must look beyond the financial rescue to the human rescue… poor countries are already facing a triple hit as the financial challenges continue to spread and many are at a tipping point … the poorest can not be asked to pay the biggest price.’
In 2009, the emergency arising from the financial crisis could force an additional 55 million people in the developing world into poverty – on less than $1.25 a day. The number of chronically hungry is expected to climb to over a billion, reversing the recent gains in fighting malnutrition. Net private capital flows to developing countries are already in sharp decline. Remittances are down about 8%.
Therefore it is imperative for wealthy nations to respond decisively to this crisis, as well as dealing with their own issues.
Business commitment to sustainability
The good news is that progressive businesses will not reduce their commitment to sustainability. They understand that failure to respond to the challenges which surround sustainability will injure their long-term profitability. Moreover, they see increasing opportunities as the unstoppable move to the green revolution creates the need for new products and services and forces a rethink of present practices. These often produce savings and increased efficiencies. Corporate social responsibility and all it stands for is now deeply embedded into the core strategies of many successful businesses.
The driving force for continued investment and commitments may be more economic than moral: but it will be there.
In good times and bad times the sustainability issue has to be well managed. As George Kell, Executive Director of the UN Global Compact puts it, ‘Restoring confidence and trust in markets will require a shift to long-term sustainability. And corporate responsibility must be an instrument towards this end.’ This comment increasingly reflects mainstream business thinking.
‘Sustainability will remain critical to our business even during an economic downturn,’ says Ian Cheshire, Group Chief Executive at Kingfisher. ‘As a major international retailer we have a responsibility to tackle issues such as Climate Change and work towards a more sustainable future.’
Jan Babiak, Global Climate Change and Sustainability Leader at Ernst and Young says that companies should realise that there are substantial savings to be made from cutting down on the wasteful use of energy and economising with other materials.
Francis Sullivan, Deputy Head of Corporate Sustainability at HSBC says, ‘Managing risk and promoting business opportunity is critical and, in the context of sustainability issues, is as important today as it was before the current challenges in the financial markets surfaced.’
Charities and NGOs
What of the millions of individuals who regularly and generously contribute to the work of charities and other organizations and who are researching and working in a vast range of areas related to sustainability? As personal incomes are reduced by the impact of recession there is already some fallout in spite of the fact that donations are a small proportion of personal income. This funding problem coincides with a greater demand for help from the charities. Their response must be to improve their management effectiveness and focus their reduced capability on the key issues which give maximum leverage and benefit.
The opportunity
A potential criticism of a Plan for the Planet is that it is to idealistic. To have any hope of being achieved it requires a massive, global, coordinated and shared strategy and action plan. Although it is urgent and failure to act will damage the lives of everyone on earth, such a concept and approach is a great idea but is it ‘an impossible dream’?
The global response to the worst economic and financial crisis since the Great Depression has demonstrated what is possible when world leaders acknowledge a common threat. What has resulted has been unprecedented national and international coordination, transparent information and rapid responses to the urgency.
This is encouraging proof that when a global threat is understood and acknowledged by the world’s government, business and community leaders, urgent and constructive actions can be quickly put in place and globally coordinated.
The short and long-term threats of the combined ten global challenges are clearly greater than the financial crisis alone.
We have the opportunity to work urgently together to continue to develop and implement this Plan for the Planet to build a sustainable world for this generation, and all of those to come.