Government needs to set an example – and business will follow.
That was the conclusion from the 2012 Global Climate Change Forum, which brought leaders from industrial and financial sectors together to discuss the challenge posed by climate change.
International Energy Agency (IEA) Chief economist Fatih Birol highlighted the urgency of the issue, warning that the world is currently on a trajectory to warm by six degrees, four degrees above what scientists would be a critical temperature.
“Efforts in the EU are important in setting leadership but in terms of reducing carbon dioxide they do not matter that much,” he said. “If there are no major changes in investment by 2017 then the door to 2C will be closed forever”.
Paul Abberley from Aviva Investors suggested that public awareness in the UK on carbon markets and climate change was “next to zero,” while Schroders Senior Advisor Alan Brown ended a surreal part of the discussion by calling for direct action and protests.
The Forum was followed around the world on Twitter, using the hashtag #CDPforum – we’ve curated a selection of what we believe are the key points from a fascinating debate.
Six degrees of pain
The IEA’s chief economist left viewers in no doubt as to the seriousness of the current situation.
Fatih Birol – 2017 the deadline to see significant changes in investment patterns, otherwise 6 degrees of warming locked in. @cdpforum
— Seb Beloe (@SebBeloe) September 12, 2012
Fatih Birol from @iea says cheap shale gas is making clean energy investment tougher #CDPforum
— Tom Carnac (@tomcarnac) September 12, 2012
Fatih Birol @iea: Government attention to climate change is sliding down the agenda. They are more focused on the financial crisis #CDPforum
— CDP (@CDProject) September 12, 2012
Investing in clean-tech
Discussions moved to the levels of current investments in renewable technologies. We know the energy system requires long-term investments, but in order for companies to take that risk, there must be political stability and a clear message from the top of government.
#CDPforum: Rachel Kyte @worldbank: Most carbon-positive investments are long term & long-term private money is hard to find currently.
— Mark Burnett (@burnettoslo) September 12, 2012
Can’t expect CEOs to make long term investment decisions without regulatory certainty – Malcolm Preston, @pwc_uk#CDPForum
— PwC_sustainability (@PwCclimateready) September 12, 2012
Rachel Kyte @worldbank: In the US you don’t see the same political & regulatory experimentation and vibrancy as you see in China. #CDPforum
— CDP (@CDProject) September 12, 2012
Elephant in the room
Alan Brown, Chief Investment Officer at Schroders consumption must be tackled as billions of people in the developing world continue to aspire to live like Americans…
1000 pound gorilla in the room: Developing countries want to consume like Americans -need to lead the change. Alan Brown. #CDPforum #climate
— Jennifer Barr (@rjenbarr) September 12, 2012
Alan Brown @schroders “If we don’t get leadership to change the way Americans consume, we aren’t going to get where we need to be” #CDPforum
— CDP (@CDProject) September 12, 2012
Surely we all need to reduce resource use – can’t go round pointing fingers without looking in your own backyard first #CDPForum
— Jessica Greatrex (@JessicaGreatrex) September 12, 2012
Perceptions of risk
Big business says it recognises the risks associated with climate change, but is this concern shared around the world – and perhaps more importantly – does it reach down to all levels of business? One key message that came through was that it’s the middle management positions who need to be convinced.
“We’ve seen a huge jump in the companies who see Climate change as an immediate risk” says Diane Brady @bnsustain #CDPforum
— CDP (@CDProject) September 12, 2012
“Convincing the board room is easy(re: sustainability), convincing middle management is tough.” – @peterggrafof @sap on the #CDPForum — GlobalPowerSolutions (@GlobalPowerCo) September 12, 2012
Business leadership – “Everybody has supply chain and that is where you start to see a real difference,” says Diane Brady @bw #CDPforum
— CDP (@CDProject) September 12, 2012
@peterggraf only when mid-management buys into #sustainability can co’s drive it across supply chain, which can make real change #CDPForum
— SAP Sustainability (@sustainableSAP) September 12, 2012
Transparency
Given today’s sponsors – the Carbon Disclosure Project – focus on reporting, it was perhaps no surprise that a large part of the debate was focused on this issue. But again and again the issue of clarity and transparency emerged. And while today’s focus is on Environmental Reporting, the future is looking integrated.
@peterggraf “technology helps benchmark and provide transparency for company’s #sustainability performance and drive awareness” #CDPForum
— SAP Sustainability (@sustainableSAP) September 12, 2012
“There will be some sort of integrated reporting in 10 years time” Faith Taylor, CEO, Wyndham Worldwide #CDPForum
— Jessica Greatrex (@JessicaGreatrex) September 12, 2012
Banorte CEO: “There is a need for awareness. We need to work on education and corporate culture. We require better metrics.” #CDPforum
— CDP (@CDProject) September 12, 2012
Collective action
No one country, or one business can do it alone. Speakers stressed that companies should not get in the way of regulation and collectively demand it from governments when they are being too slow.
SAP’s Graf: Companies can’t blame governments for dallying on climate change. Companies must act. #CDPforum
— Tom Randall (@tsrandall) September 12, 2012
“Alone, no single country will be able to solve this issue,” says Banorte CEO #CDPforum
— ClearstreamSolutions (@CSCarbon) September 12, 2012
News! RT @cdproject: Rachel Kyte @worldbank: Businesses need to build that voice. Go to government and say “Regulate us please” #CDPforum
— Planetsalong (@Planetsalong) September 12, 2012