Global warming threatens to alter
the stability required for civilization.
According to the UN Intergovernmental Panel on Climate Change
(IPCC), which was recently awarded the
Nobel Peace Prize, many natural systems
are already being harmed by climate
change.
“Even under conservative scenarios, IPCC
predicts that climate change will negatively
impact agriculture, forestry, ecosystems,
water resources, human health and industry,” says James Brusslan, head of the
Environmental Services Group at Levenfeld
Pearlstein, LLC. “In North America, cities
will suffer major heat waves with potential
adverse health impacts and coastal communities will be threatened.”
Smart Business asked Brusslan how
companies can combat climate change by
reducing their carbon footprint.
Why should companies take action to
address climate change?
The IPCC has determined with virtual certainty that humans are the cause of significant global warming due to increased emissions of greenhouse gases (GHG), including carbon dioxide and methane. Many scientists believe if we do not take action
quickly, the impact could be catastrophic.
Also, global warming legislation may
have a significant influence on how companies conduct business in the near
future. As early as 1997, the international
community took the first steps to reduce
GHGs by negotiating the Kyoto Protocol.
In the absence of federal legislation in the
U.S., both courts and states are taking
their own measures to regulate GHGs.
Some states and regions, including
Illinois, have published long-term goals to
reduce their emissions. Illinois has a goal
of reaching 1990 GHG levels by 2020.
Knowing that federal legislation is
inevitable, several industry groups are
working to endorse a reasonable version
of climate change legislation. For
instance, the United States Climate Action
Partnership (USCAP) is a group of businesses and organizations that have come
together to call on the federal government
to quickly enact strong national legislation to require significant reductions of
greenhouse gas emissions. USCAP members include BP Amoco, Shell, Caterpillar,
DuPont, Ford and GM.
How can businesses respond to this issue?
Business can take several measures.
Offices can reduce electricity by employing more efficient lighting, turning off
lights and machinery, and occupying energy-efficient buildings. They can also lower
their use of paper, plastic and other non-renewable resources, and recycle. When
purchasing products, they can make sure
the products are as ‘green’ as possible.
Outside the office, companies can reduce
corporate travel. Manufacturers can make
their production and transportation methods more efficient. And those in the construction business can focus on ‘green
buildings,’ which, according to recent studies, increases expenses only 2 percent.
How should organizations begin this
process?
Top management must make a commitment to reducing the company’s carbon footprint. The company should
then designate one or more employees
with authority to research and implement these goals. One simple way any
company can begin to reduce its carbon
footprint is to calculate its electricity
use and corporate travel and work to
both reduce such use and offset its
emissions.
Many resources can assist with this
objective, including The American Bar
Association and The United States
Green Building Council as well as trade
associations.
How do companies benefit from taking initiative prior to federal legislation?
Going green is a substantial marketing
tool, while at the same time addressing
a real concern. Taking initiative now
can also improve employee morale,
result in cost savings and mitigate the
disruptive impact of new legislation.
Companies interested in offsetting
their carbon emissions will gain insight
on the expected ‘cap and trade’ federal
legislation. For instance, the Chicago
Climate Exchange may be the primary
market for carbon offsets. By joining
CCX now, a company can influence
how the market will work in the future.
Companies can also gain greater insight
on offset technologies, such as methane
capture, reforestation and low-till farming, which presents new business
opportunities.
Perhaps most importantly, even in the
absence of global warming legislation,
the investment world is focused on non-carbon technologies, particularly in the
fields of electricity generation and
transportation. As USCAP explains, this
presents tremendous opportunity for
innovative business solutions. Once
carbon limits become mandatory, there
will be huge new markets for manufacturers who have already changed their
operations.
JAMES BRUSSLAN is head of the Environmental Services Group at Levenfeld Pearlstein, LLC. Contact him at [email protected]
or (312) 476-7570.
James Brusslan
Head of the Environmental Services Group
Levenfeld Pearlstein, LLC