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THE International Journal of Corporate Social Responsibility, Sustainability, Leadership and Ethics

 

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Leader to Leader:

Mobilising Science

There is no more complex problem today than global warming, and addressing it requires big changes in economic activities and lifestyles. The temptation is to focus on more immediate and manageable issues when faced with a problem as difficult as climate change. With climate change, local implications are uncertain, and the full consequences will only materialise gradually and in the longer term. The remedies are as far-reaching. We like to tackle problems that we believe we can solve. How can we ensure that leaders and citizens grasp the magnitude of the climate change problem without balking at the decisions to take?
Science has a big responsibility here, and the world is fortunate to have the Inter-governmental Panel on Climate Change (IPCC) as a scientific authority to provide advice. The first task of science is to improve our understanding of climate change and its effects. But this understanding also has to be communicated to decision-makers and the public at large to prepare the ground for meaningful action. This requires providing a picture of the potential impacts of climate change and their likelihood, and formulating options for mitigating and adapting to climate change. The long-term nature of climate change and the remaining uncertainties can be addressed by showing the benefits of action on other criteria besides climate change, such as for curbing air pollution, reducing energy costs and dependence on energy imports, and improving the efficiency of the transport system. Where decision-makers are hesitant to take far-reaching decisions in the face of what may seem a distant problem, they should be directed towards action that makes sense on other grounds, while keeping open options for more radical steps when the time is ripe.
Margot Wallström European Commissioner for the Environment

 

New Academy Review: Volume 3 Number 1 
Spring 2004

 

I prefer to think of it as “climate chaos”. It is more than change. It is already hurting plants, animals and people all over the world.
Anita Roddick

“Weapons of mass destruction” exist here and now on Planet Earth though they have not been invented by any superpower.
Jeremy Leggett

Environmental work is good for business. It is our responsibility,
Anders Dahlvig

Leadership is essential in coming to grips with climate change.
Margot Wallström

The international community has taken tiny steps in the right direction to begin tackling climate change.
Jim Fulton

Only zero throughput of extracted natural capital is sustainable over evolutionary time (the true long run) – a radical thought, but a necessary objective, not just for Interface but for the entire industrial system
 
Ray Anderson

Dame Anita Roddick
In recent months, Sir David King, Britain’s chief scientific adviser, has bluntly warned that climate change is a more serious threat than terrorism. He also – just as bluntly – attacked the US Government for ‘failing to take up the challenge of global warming’.
Because we are failing to take global warming seriously, he says, “millions more people around the world may in the future be exposed to the risk of hunger, drought, flooding and diseases such as malaria.”
It’s critical that we in the Northern Hemisphere start to take climate change seriously. Because we are overwhelmingly responsible for burning most of the world’s fossil fuels on a daily basis, we are morally obligated to look in the mirror to find the solution. It is each of us in the industrial north that have to change. We have to look more at conservation, and help change our relationship with energy by using renewable sources and more efficient technology.

Contents  

View from the Chair - Anita Roddick
Guest Editor
Tipping Point on Climate Change Kaj Embren and Mei Li Han, Respect
Leader to Leader
Climate Change: Will Mankind Manage? Margot Wallström, European Commissioner for the Environment
Fears Are Overblown: Reducing Emissions is Possible and Profitable Michael Northrop, Rockefeller Brothers Fund
Climate Change: A Retailer’s Perspective Anders Dahlvig, CEO IKEA Group
Climbing Mount Sustainability Ray Anderson, Founder and Chairman, Interface, Inc.
Debating Points
Efficient Solutions to Reduce GHG: The Ecological Tax Reform in Germany Kai Schlegelmilch, German Federal Ministry for Environment, Nature Conservation and Nuclear Safety
Cutting Emissions: Taking the First Step Jim Fulton, Suzuki Foundation
Core Methodology for Actions
Corporate GHG Targets and Transparency Simon Schmitz, Project Officer, Energy and Climate, World Business Council for Sustainable Development
Global Renewable Energy Markets and Policies Eric Martinot, University of Maryland, School of Public Affairs, College Park, MD, USA
Verifying Company Level Greenhouse Gas Emissions Inventories: An Overview of Current Practices and Issues Brian Dawson and Matt Spannagle, Australian Greenhouse Office
Transport and Global Warming Gases Kenneth Button, Professor of Public Policy And Director of the Center for Transportation Policy, Operations and Logistics, George Mason University, USA
Technology, Policy and Climate Change Christian Azar, Department of Physical Resource Theory, Chalmers University of Technology, Sweden; Björn A. Sandén, Department of Environmental Systems Analysis, Chalmers University of Technology, Sweden; and Thomas Sterner Department of Economics, Göteborg University, Sweden
The Future of Energy Supply: Civilisation at Risk Jeremy Legget, Chief Executive, Solar Century
Toronto Atmospheric Fund; Philip Jessup, Toronto Atmosphere Fund
The Small Island States: The Challenge of Energy, His Excellency Ambassador Enele S. Sopoaga, Permanent Representative of Tuvalu to the United Nations, Vice Chairman of the Alliance of Small Island States
Energy consumption in existing Swedish buildings can be halved -Åke Persson CEO, AB Fortum Värme, joint owned by Stockholm Stad Olle Ehrlén, CEO, NCC Construction Sweden AB, Lars Rekke, Director General, – The Swedish Civil Aviation Administration, Anders Jansson, Group Chief Executive, Stena Metall,
Maria Ågren, Director General, SMHI
Lars Birve, CEO, MKB Fastighets AB, Håkan Bryngelson, CEO, Vasakrona, Per-Uno Alm, Founder of RespectEurope
Case Studies
Severn Trent plc: A Partnership Approach to Reducing Climate Change through Carbon Management Andy Wales, Group Environment and Sustainable Development Manager, Severn Trent plc
California Policies on Energy and Climate Change, Bentham Paulos and Marcus Schneider, Energy Foundation
Climate Leaders: Tracking Corporate Leadership on Climate Change Thomas M. Kerr, Chief of the Energy Supply and Industry Branch, Office of Air and Radiation, United States Environmental Protection Agency
Manitoba: Towards a Climate Friendly Economy Jane Gray, Senior Policy Analyst, Executive Council, Manitoba Government
Climate Change Action at Tufts University William Moomaw, PhD and Sarah Hammond Creighton, Tufts Climate Initiative
Climate Action in the Northeast U.S. States: Can Such a Small Region Really Make a Difference? Kenneth A. Colburn and Kelly E. Levin, Northeast States for Coordinated Air Use Management (NESCAUM)
Portland: A Local Approach to Climate Protection Michael Armstrong, Policy Analyst, City of Portland Office of Sustainable Development, USA
The Global Sustainable Energy Island Initiative The Honourable Tom Roper, Climate Institute
Climate Change Policy: Are Governments Getting Down to Business? Kate Hampton, Manager Policy and Markets Research, Climate Change Capital
The Carbon Trust: Low Carbon Innovation at Work, Tom Delay, Chief Executive, The Carbon Trust
NGO Perspective
Long-term International Climate Policies: The Status of the Debate in Japan Yuri Onodera, Director, Climate Change Programme, Friends of the Earth, Japan
Climate Change Networks and Organisation


Fears Are Overblown: Reducing Emissions is Possible and Profitable
Abstract

Lingering doubt about the world’s ability to reduce greenhouse gas (GHG) emissions without inflicting serious economic harm remains a major impediment to addressing climate change. This is especially true in the U.S., but developing countries and several European states have also been concerned.
Yet, an appraisal of the real world experience of those who have begun reducing their emissions of GHGs presents a quite hopeful story. From these emerging experiences, it appears that policymakers, business leaders and the public may now have reason to be more confident about reducing GHG emissions without doing harm. In fact, the body of evidence growing around the world indicates that GHG emissions can be reduced by amounts significantly beyond the Kyoto targets - and that these actions can be profitable.
Examples from leading companies in multiple sectors and from governments at a variety of jurisdictional levels are cause for optimism.
Michael Northrop
 Rockefeller Brothers Fund

Climbing Mount Sustainability
Abstract

For nearly ten years, my company, Interface, Inc. – multinational producer of carpet tiles, broadloom carpets, textiles and architectural products for worldwide commercial and institutional markets – has been committed to achieving environmental sustainability. We have learned a lot about transforming our petro-intensive industrial enterprise to reduce its environmental impacts, eventually to zero. As physicist Amory Lovins often says, “If it exists, it must be possible.” And to use Alan AtKisson’s (1999) metaphor of amoeba‑like progress, early movers in sustainability – people and companies – are the “pseudopod” reaching out to establish a new foothold for moving the “body” of the industrial system to a new state – harmony with the natural world on which the entire economic system is utterly dependent. Interface is an early mover, seeking to demonstrate the possible. Ray Anderson, Founder and Chairman, Interface, Inc.


 

Climate Change: A Retailer’s Perspective
Abstract.

One of the first questions business leaders must ask themselves is: “Is environmental work good or bad for business?”
The answer to this question determines the level of commitment a company gives to environmental issues.
If we regard environmental work primarily as a cost, my experience says that this work will be limited to a minimum. That is, to follow the law, or – at best – conduct a few PR activities and take corrective action when a crisis occurs.
To take a more proactive, forceful and credible approach to environmental issues, we need to see beyond costs and concerns about short-term profitability. Because in the long-term, environmental work contributes to increased profitability, more motivated co-workers and a stronger market position. We’ve experienced this at IKEA - our customers genuinely feel that our and their values are the same.
At IKEA today we have a strong and well-anchored conviction that proactive environmental work is good for business. But I readily confess that this has not always been a smooth ride. We have had many animated discussions internally. Not so much whether we should do something or not, but more about how much we should do and how quickly we should do it.
Anders Dahlvig, CEO IKEA Group

Tufts University, a mid-sized university with three Massachusetts-based campuses, has pledged to meet the Kyoto target by reducing its greenhouse gas (GHG) emissions to 7% below 1990 levels by 2012. Tufts will further reduce to 10% below 1990 levels by 2020 and by 75% in the longer term. William Moomaw and Sarah Hammond Creighton, Tufts Climate Initiative

Efficient Solutions to Reduce GHG: The Ecological Tax Reform in Germany
 Abstract

 Germany considers itself a frontrunner in climate protection policies, at least in part because its emissions have historically been (and currently still are) a major contributor to global climate change. In addition, it is also technically and economically feasible for Germany to implement measures and technologies that help to reduce greenhouse gases (GHG).
For more than 15 years there has been a broad consensus across German society that the country should strive for ambitious reduction targets. It is clear that to achieve such targets the right mixture of efficient instruments would be required to overcome the barriers - there is no ‘cure-all’ available. As long ago as 1988 there were more than 100 different reduction measures listed in the German government’s Climate Protection Programme. However, the major economic incentive necessary - in the form of an Ecological Tax Reform (ETR) - was missing. This was introduced in 1999 when a new government, largely made up of Greens and Social Democrats, came to power.
The government considered it crucial to implement this type of reform in a steady and predictable way, taking small steps to allow for adjustment and adaptation. A goal during implementation of the reform was to provide the necessary information about increasing energy taxes to the consumer for each consumption or investment decision he makes (e.g. scrapping an old car or buying a new one). The ability to take the information into account enables the consumer to choose the most efficient commodity on the market, or the ‘least cost’ scenarios. In this way the choice is fully up to the consumer directly and, indirectly, to the entrepreneur and engineer to invent energy-efficient technologies and equipments. This provides a mechanism to better balance market competitiveness with environmental impact and social aspects.
Kai Schlegelmilch  German Federal Ministry for Environment, Nature Conservation and Nuclear Safety