Whether companies agree with the science of Global Climate Change or not, the business implications are too great are too great to be ignored. Climate Change will change how business is conducted and should be managed like any other strategic asset or liability on the corporation’s balance sheet.
- Executives view Climate Change as having as much of an impact to shareholder value as political influences, pension and retirement benefits, and data security.
- The 110th Congressional session (2007 and 2008) has proposed 195 Climate Change-related proposals, almost doubling the previous session.
- Within the oil and gas industry, many companies have identified Climate Change and assess to reserves as the two main constraints in the next decade.
The impacts, positive and negative, are wide-ranging. Proactive companies will be well positioned to manage the changes and opportunities; companies that wait will face regulatory, competitve, adoption, reputation, and shareholder pressures.
Climate change is currently a governance, risk, strategic management issue, and will eventually be a compliance issue. Given the extent of potential impacts, companies must address the risks and market opportunities today. The key steps to managing Climate Change impacts include:
- Assessing the risks and opportunities
- Developing and implementing an action plan
- Communicating and engaging stakeholders