Debate about the impact of climate change is certainly nothing new. So why is it that businesses are still so unprepared, both for schemes designed to mitigate global warming, such as the CRC Energy Efficiency Scheme (CRC) initiative, and for the effects of climate change itself?
Given the longstanding nature of the climate change debate, lack of time can no longer be cited as an excuse, and neither can ignorance. The exact science of global warming may remain contested, but the basic issues are clear.
With the effects of extreme weather increasingly being felt by companies both in the UK and abroad, it is plain that the time for dawdling has passed. Perhaps Defra’s research showing the opportunities presented by climate change will help reenergise the way businesses think about, and act on, climate change issues.
It is clear that opportunities exist both in finding ways to mitigate climate change by reducing green house gas emissions, and in minimising the negative impacts of extreme weather. Some companies are already seizing these opportunities, such as the innovative work by G24i, covered in this section, but others are clearly being left behind. Fines for inaction, such as those associated with the UK’s carbon reduction commitment, represent only the tip of the iceberg facing businesses who fail to prepare for the challenges presented by climate change.
Whether aiming to exploit opportunities or avoid unnecessary costs, the evidence underlines that this is one area in which businesses can’t afford to wait.
Clare Battle is studying for an MSC in International Politics at SOAS. She is currently on an internship at Corporate Citizenship. Contact her on clare.battle@corporate-citizenship.com.
UK business not prepared for climate change challenges
A new survey of UK businesses and other organisations carried out for Defra by Ipsos MORI has found that while many businesses have been affected by the type of weather that climate change may bring, preparations for the impacts of climate change are not well advanced. Three quarters of the businesses surveyed were concerned about the effects of climate change on the UK and one in three (31%) had been significantly affected in the last three years by extreme weather such as flooding and drought. However, less than a quarter (23%) had actually started to do something about the risks and opportunities that climate change poses. The survey also shows that businesses generally perceive a changing climate to be a threat rather than an opportunity. However recent Defra-funded research has shown that the impacts of climate change will present opportunities for UK businesses across a range of sectors such as construction and retro-fitting, water management, tourism, transport and food production
G24i, a global manufacturer of solar cells, has announced the use of wind energy to produce the latest generation of solar cells at its Cardiff site. A 120 metre tall windmill from firm Ecotricity will be powering operations at Cardiff-based G24 Innovations by the end of 2010, producing 5.9 million units of electricity each year for around 25 years, enough energy for the equivalent use of over 1,700 homes. Work has already begun on the foundations to prepare the site for the windmill, which will be delivered onto site in October and should be fully operational by November 2010. It is the first time in the world that green energy has been made on-site to produce products that also make renewable energy.
Businesses play key role in feed-in tariff take up
Since the launch of Feed-in Tariffs in the UK, the uptake of greentech for commercial and domestic use has risen significantly, according to figures released by Ofgem in August. The figures on the number and size of Feed-In Tariffs installations have showed that of the 20.7MW of total installed capacity that has been registered for the scheme, 6.4MW was installed by the commercial sector. This is well ahead of initial Government predictions that forecast the domestic sector accounting for a far higher majority of the installation capacity. Commenting on the figures, Philip Wolfe, Managing Director of Ownergy, said: “What was both surprising and welcome to see, was the uptake in the commercial sector. While the number of installations may be low, if those average sizes of installed capacity are maintained then the Feed-In Tariffs will be very much on course to make a significant contribution to this country’s renewable energy targets.
A new report from the Federation of Small Businesses entitled ‘Making Sense of Going Green’, argues that the upcoming Energy Security and Green Economy bill must include measures to help small and medium-sized businesses (SMEs) cut carbon emissions. The report recommends a range of measures including expanding the government’s current green loan scheme for small businesses, and offering incentives for firms that improve the energy efficiency of their buildings. The report calls on the government to introduce a loan scheme for SMEs that would see banks, energy and construction firms pay the upfront costs of major building energy efficiency upgrades; encourage firms in the worst G-rated buildings to invest in obtaining an F-rating; and waive planned increases to business rates for firms that improve building energy efficiency.
More than sixty corporations which have been testing a new global framework as part of the Greenhouse Gas Protocol Initiative, have completed their road test of the new global standards. Developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD), the two new GHG Protocol standards –the Product Lifecycle Accounting and Reporting Standard and the Scope 3 (Corporate Value Chain) Accounting and Reporting Standard – provide methods to account for emissions associated with individual products across their life-cycles and of corporations across their value chains. 62 companies from multiple sectors and 17 countries, including Ford Motor Company, General Electric, PepsiCo and Kraft Foods, started road testing the standards by measuring the greenhouse gas (GHG) emissions of their products and supply chains in January ; in June they submitted written feedback on their usability. The next step will be to revise the standards based on feedback; the final versions of the standards will be published by March 2011.
UK businesses are facing hefty fines for failing to comply with new carbon emission regulations under the Carbon Reduction Commitment (CRC) energy-efficiency scheme. Launched in April 2010, the CRC requires large public and private sector organisations to register with the Environment Agency by 30 September 2010, but the Energy Agency estimates that only 1,229 out of about 4,000 large businesses and other commercial organizations have done so. If companies fail to register by the deadline, the will have to pay an initial fine of £5,000 (about $7,788) plus an additional £500 (about $780) per day up to a maximum of £45,000 ($70,000) until they comply.
Australia firm signs forest CO2 deal with Malaysia tribes
Australian carbon services company Shift2Neutral has signed an agreement with a group of 10 villages living in Maluku, Indonesia to certify 159,000 hectares of tribal land for carbon credits. Under the avoided deforestation program known as REDD+ , the agreement will see Shift2Neutral and its agents work directly with the tribal leaders to ensure the protection of their native flora and fauna, and to reduce greenhouse gas emissions caused by deforestation.
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