2007/02/19 12:00:00 AM

The bottom line about climate change

IT’S TIME to take the debate on climate change to a new level, beyond Al Gore and Nicholas Stern. It’s time to focus on what we can do, rather than on whether there’s a crisis.

While a handful of scientists still argue the semantics, the skirmish is over. Since 2001, no climate scientist has expressed scepticism that earth is getting hotter and that the effect may be devastating.

Average surface temperatures have risen by 0,6°C in the past 140 years. That might not sound like much but earth is in the warmest state it has been for the past 10000 years - and within 1°C of the hottest it has been in the past million years. And all of the 10 warmest years in recorded history have occurred since 1990 - the hottest being 2005.

A number of studies have confirmed that most of the world’s glaciers are melting, and that since 1980 global glacier retreat has increased significantly. One result is that sea levels have risen by about 3mm a year since 1992, compared with the period from 3000 years ago to the start of the 19th century, when the sea level was almost constant.

Ironically, Africa, and SA in particular, lie in the middle of this “road to hell”. As a recent report stated, "global warming means that many dry areas (in Africa) are going to get drier and wet areas are going to get wetter". But, as the global warming increases, we may also be approaching a tipping point in the tide of public opinion - and, more important, political will - which might just save humanity from the worst effects of global warming.

What is needed is a dramatic change in the focus of the argument. In the classic environmental debate, concepts such as big business, growth, technology and urbanisation have automatically been seen as “bad”. And, in many ways, they have been bad for the environment. But the search for balance does not lie in turning back the clock. Humanity will not go back to live in the forests. Rather, we have to launch a new age of responsible growth - an era in which we unleash all of humankind’s creativity and entrepreneurship to:

• use business as the vehicle for responsible environmental change;
• make technology the source of new energy-efficient and environmentally friendly solutions; and
• embrace growth as the fuel to fund and drive a new, positive revolution.

The reality is that if we continue to see growth, business and technology only as the problem, we will never find a solution. That means, of course, that business needs to turn to a more responsible and intelligent form of capitalism. Increasingly, major corporations are recognising that going green is not only the right thing to do, but makes business sense too.

That’s a fundamental turning point. So long as climate change is seen as a soft issue, it will remain at the bottom of the board agenda. But once it is recognised as a hardcore profit opportunity, it will get the attention it deserves. Big companies such as GE, Wal-Mart, Tesco, Du Pont, Goldman Sachs and Virgin get the idea, creating various initiatives to slash energy costs and reduce emissions.

And the list grows daily - along with the pressure on those who have not yet acted.

The “green issue” is no longer a cause just for left-wing tree huggers. It has become a central business and political issue, and no leader, in business or politics, can dare ignore it.

Nonetheless, there are some hard realities ahead.

Eco-regulation, such as robust emission caps, will come. This is likely to include restrictions on travel, particularly flights.

Full-cost pricing for energy - taking into account the upstream and downstream environmental costs of fuels such as oil and coal - will come.

Investment and consumer support will increasingly move to eco-friendly businesses, particularly through private equity channels.

The pressure will not go away. So what can you do?

On the business front: recognise global warming as a central business issue - and a profit opportunity. Ensure your colleagues and staff understand the issue.

Understand your own company’s carbon footprint. Start with an energy audit. What’s your energy bill? What can you do to cut it and make real savings?

Actively seek out and develop the new business opportunities and grab them before everyone else does. There is plenty of low-hanging fruit for the nimble and forward-thinking.

What do you want your environmental balance sheet to say? Tie your beliefs directly to your brand. Communicate what you are doing to your customers, markets and government.

Ask where your own investments are going. Where is your pension fund investing? Are you supporting environmentally sound businesses? Talk to your suppliers. Make clear the environmental standards you expect.

And, most important, act now! Smart businesses are already getting ahead of the curve. Remember that leaders act before they have to.

As an individual: you are the most empowered consumer in history - use that power. Demand products that are environmentally friendly.

The most important personal environmental decision you can make is the choice of the car you drive. If available, choose a hybrid car. Otherwise select a vehicle with the best fuel economy in its class.

Do a home energy audit. Use solar power to reduce geyser heating costs, the biggest part of your electricity bill.

Most important here, make your voice heard. Demand that your local authority starts recycling. Demand rebates for solar and other renewable installations.

After all, it’s your world, and you and your children have to live in it.

Jacobsohn is South African CEO of business and technology think-tank FutureWorld. This article is extracted from FutureWorld’s new presentation, Business and the Environment.