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Business can be green

(China Daily)
Updated: 2009-05-18 08:04

The hugely successful Earth Hour, run by the WWF, on March 28th saw tremendous support from the United Nations, government agencies, individuals, communities, and - perhaps more surprisingly given the current economic downturn - the corporate sector. More than 18,000 businesses participated and supported Earth Hour across the globe, through local staff and customer engagement, on-site promotion and in-kind or financial donations.

Some commentators asked how WWF could expect people to care about climate change at a time like this. But as the corporate sector proved by supporting Earth Hour, businesses are catching onto the fact that the cost of inaction is much higher than the cost of acting now.

Many businesses today have realized the major impact that climate change is having on human life and economic development. Shareholders, customers and the media also want to know whether companies are facing the reality of climate change. Are they preparing for the future with their own climate change policy and a CO2 reduction plan?

Related readings:  Polluters told to clean up their act  tGrowth is good but it must be green  Green investment will keep growing  China's economic stimulus plans benefit environment

Making better use of resources and creating products which consume less energy is becoming part of normal business practice, especially as the cost of CO2 emissions rise. Thus the role businesses play is more important than it has ever been in the fight against climate change.

This is as true for China as is for the rest of the world.

It is true that some sectors need to invest a great deal of time and money to reduce their greenhouse gas emissions but there are enormous opportunities for businesses to reduce their carbon footprint and improve their bottom line by cutting CO2 emissions. The action companies need to take to reduce these emissions are entirely compatible with their aim of improving shareholder value.

 

WWF recently contributed to an important study by McKinsey & Co, Pathways to a Low Carbon Economy, which shows that fighting climate change makes good economic sense. McKinsey found that switching to a low carbon economy would only cost society between 0.2 and 0.5 percent of global GDP, while failure to act, according to Lord Stern, could cost between 5 and 20 percent of global GDP. But, McKinsey also said that success will only be possible if we take urgent action now.

There are many examples of low carbon success stories, especially among the companies involved in the WWF Climate Savers Program. This has proven to be an outstanding success - partnering some of the world's leading corporations with WWF and helping them show leadership by significantly reducing emissions.

Climate Savers companies show that they can be at the forefront of cutting emissions and maintain a commercial profit. Many have found that their efforts to reduce their footprints have had positive impacts on their efficiency, their reputations and their overall business environment.

Climate Saver participant Tetra Pak recently announced that its packaging plant in Hohhot, Northern China, had started to operate completely on renewable energy, primarily wind power. This is a pioneering facility for Inner Mongolia and among the first of its kind in China. The plant will consume an estimated 20 million kWh of green power annually, saving 16,000 tons of CO2 a year. This is part of Tetra Pak's global commitment to reduce its carbon emissions by 10 percent through improved energy efficiency and increased use of renewable energy.

To help more companies in China implement green business practices, WWF is already engaged in studies that highlight sustainable solutions for low carbon development. These studies also showcase how companies can benefit from early actions. During the past few years of working with businesses on climate change and energy use, we have witnessed many inspiring examples emerging from the private sector.

For China, energy consumption and emissions reductions have become a major focus of both industry and wider society.

The government has set a remarkable target to reduce energy use by 20 percent per unit of GDP between 2006 and 2010 and ambitious renewable energy use targets - 15 percent share of electricity and 19 percent of all primary energy used by year 2020 - will come from green sources.

Companies that have already started on this path should be applauded, not just for the example they have set in reducing their own emissions, but also for their willingness to urge governments, the broader business community, as well as consumers to take action.

Just as people benefit from the products and services that businesses provide, new ideas and actions taken today to deal with climate change will benefit humanity. Business action on climate change is crucial if sustainable and lasting solutions to global warming are to be achieved.

James P. Leape is director general of WWF International. The views expressed in the article are his own. He can be reached at jleape@wwfint.org