Global organizations regard climate change as a serious business risk that directly impacts their business operations. Climate change leads to environmental risks such as floods, heat stress and droughts, which adversely affect organizations, especially their supply chains, consumers and revenue streams. As a result, people are realizing that the framework we use for conducting business and producing goods and services needs to change.
Sustainability reporting in the corporate setting is an important factor to improve a company’s green initiatives and its relationship with investors and clients, inline with stakeholders’ demand for transparency and accountability. Ernst & Young upholds that sustainability reporting is “a best practice employed by companies worldwide,” as it can help improve practices already in place.
Global organizations recognize the importance of incorporating Environmental, Social and Governance (ESG) considerations in planning for core businesses. With increasing opportunities arising from trends in global sustainability, companies and their leaders are embracing sustainable development to respond to environmental and social issues that affect the way they operate.
Climatescope, a country-by-country assessment, interactive report and index, conducted a study on the clean energy activities of emerging markets from 55 developing nations in Africa, Asia, Latin America and the Caribbean. The results revealed that renewable technologies are an energy solution as cost-effective for developing nations as they are for developed ones. Topping the list in the Climatescope 2014 study of developing countries with the most effective clean energy and renewable technology investments are China, Brazil, South Africa, India, Chile, Uruguay, Kenya, Mexico, Indonesia and Uganda.
Managing energy consumption is an integral component of an organization’s sustainability efforts. By establishing and practicing the right energy management strategies, organizations achieve tangible results reflected in their return on investment (ROI) and productivity reports. Being energy-efficient helps organizations reduce operational costs and lessen carbon activity. If joint global efforts on energy management were universally implemented, a 40% reduction of greenhouse gas (GHG) emissions from their 1990 levels will be achieved by 2030, according to a McKinsey report.
Companies are beginning to see the importance of establishing efficient and innovative energy management systems, especially as they relate to mitigating the risks that directly affect how businesses operate. Industry experts note that recent technological advancements and innovations in energy efficiency strategies help industries grow and achieve healthier profits, by improving operational efficiency.
The impacts of global climate change are felt in business and everyday life. They are evident in heavy rainfalls and thunderstorms, melting polar ice caps, increasing global temperatures, longer droughts, and rising sea-levels and flash floods. As reported by the United States Environmental Protection Agency, climate change is considered a major threat to mankind. Climate-related issues adversely affect our access to basic human needs such as food, shelter, water and health. Farmers are particularly affected, as drought or major flooding lead to a decrease in crop yields and livestock productivity. Climate change impacts must be addressed in order to secure our collective future.
Over the past few years, integrating sustainability into an organization’s business agenda has become a necessity. Organizations face environmental risks brought about by climate change including droughts, flood and heat stress. In order to address these challenges, companies need to reinvent their sustainability strategy and risk management capabilities.
As corporate sustainability rapidly becomes a core element of global business, companies need to adjust accordingly to be competitive. Industry experts advise that to be able to embrace the paradigm shift, organizations must have key leaders who have a clear vision of the direction of their environmental, social and governance (ESG) programs. They need the right sustainability leaders to continually raise the bar when it comes to the sustainability programs reflected in their annual corporate social responsibility (CSR) reports. The Guardian News stressed that these reports are considered vital by shareholders and investors in their decision-making process, as they showcase a company’s ESG and CSR efforts.
Global leaders achieved a major landmark on climate change mitigation during last year’s United Nations Climate Change Conference. The annual event, established during the mid-1990s, aids the United Nations Framework Convention on Climate Change (UNFCCC) to establish a platform for openly discussing the Kyoto Protocol and negotiating its implementation. Also known as the Conference of the Parties (COP), the COP20 conference was held in Lima, Peru and facilitated discussions on a global climate agreement that will help reduce global greenhouse gas (GHG) emissions to limit the rise in global temperature.
© 2015 FirstCarbon Solutions, Inc. Copyright and Trademark InformationFirstCarbon® and ghgTrack™ are registered trademarks of FirstCarbon Solutions, Inc.