Survey: Climate change action still beyond strategies of many firms[fr][de] 

Nearly 70% of global executives consider climate change important not only for their companies' reputations, but also for core business matters like product development and investment planning, according to 'How companies think about climate change', a survey carried out in December 2007 by the global consulting firm McKinsey.

"Relatively few companies, however, currently appear to be translating the importance they place on climate change into corporate action," says McKinsey, which found that many companies "consider climate change only occasionally at best when managing corporate reputation and brands, developing new products, or even managing environmental issues".

The survey questioned 2,192 global executives, including nearly 600 chief executive officers (CEOs), from the finance, manufacturing, energy and mining sectors.

Concerns about higher operating costs only slightly explain companies' apparent reluctance to translate their concerns into action, as "61% percent of respondents view the issues associated with climate change as having a positive effect on profits if managed well," says McKinsey.

Uncertainties about future regulatory frameworks may help to explain why many firms continue to hedge their bets on which concrete actions to take, with most CEOs expecting strong regulation to take hold in their home countries only within five years. Respondents "broadly agree that the effects of any regulations on profits are more likely to be negative than positive".

The survey also found "no consensus" in many firms about which level of management should be responsible for climate change-related decisions. And 70% of companies do not employ "organisational performance targets related to climate change," indicating that while companies as a whole may profit from climate change, the benefits for indivudual members of firms possibly remains unclear.

The Commission justifies tough climate change regulations and measures as one means to inspire a 'third industrial revolution', characterised by reduced greenhouse gas emissions and more sustainable development, that will create thousands of new jobs and put Europe at the forefront of global competition.

Proponents of the Commission's plans, including the Prince of Wales (EurActiv 15/02/08), say the private sector must step up to the plate and commit to tackling climate change, including through the transfer of 'huge sums' to developing states in order to prevent deforestation, for example.

And green groups like the WWF, which have engaged in partnerships with businesses, says "changes in corporate practices are essential" for dealing with climate change". 

But some industry sectors say too much regulation will simply push EU industries out of Europe (EurActiv 27/11/08). The industry group BusinessEurope, for example, argues that Brussels should focus more on realising the full potential of energy efficiency improvements rather than tightening the bloc's carbon market or pushing for "difficult to achieve" renewable energy targets.

Key stakeholders will voice their positions on how the private sector is dealing with the challenges of climate change during the 6th European Business  Summit (EBS), scheduled for 21-22 February in Brussels (see also EurActiv 29/01/08).