| Global business backs green regulation |
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| Tuesday, 27 November 2007 | |
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Businesses around the world are urging policy makers to take a more co-ordinated approach to climate change and introduce regulations to help them adapt.
The report Climate Change: a business response to a global issue has been published by law firm Clifford Chance just days before the international community gathers in Bali for the UN conference on climate change. It examines climate change from the perspective of a selected cross- section of businesses, including how they have adapted their outlook and strategies and what they want from government. Globally, four out of every five (81 per cent) company respondents expressed the view that more regulation is needed to drive business' response to climate change. US companies, however, were less enthusiastic compared to other companies elsewhere in the world. Sixty-nine per cent considered more regulation necessary, compared to 77 per cent in the UK, 86 per cent in Europe and 100 per cent in Asia-Pacific. Climate-friendly technologies Ninety-five per cent of respondents in the US believe climate change regulation will have more impact on their businesses over the next few years, ranking marginally under expectations in Europe (96 per cent), but above the UK (87 per cent) and Asia-Pacific (81 per cent). William Thomas, head of Clifford Chance's Americas environment practice, said that the US results reflect growing business sentiment favouring climate measures that control emissions, spur development of climate-friendly technologies and solutions, and provide greater regulatory certainty. "Climate change is increasingly high on the agenda of US policy makers at both the federal and state level. This reality, coupled with recent Supreme Court jurisprudence concerning regulation of greenhouse gas emissions, makes it more likely that a national regime will emerge sooner rather than later, and has prompted several key players to pursue preferred legislative solutions," he added. Global merger and acquisition activity The majority of respondents said that they are taking steps which go beyond current requirements. Respondents were optimistic about climate change business opportunities, particularly in the long-term. US respondents are most enthusiastic with more than three quarters of companies predicting strong long-term future prospects, and nearly 40 per cent seeing possible gains relatively soon. The research also revealed that climate change could have a significant impact on global merger and acquisition activity. Globally, nearly a quarter of respondents said climate change was a reason for considering the acquisition of a business. Only seven per cent of respondents have considered disposing of a business due to the impact of climate change. These were based in the US and the UK. Reputation as a key driver Clifford Chance senior partner Stuart Popham said that the report illustrates how major businesses are responding to the challenge of one of the key issues being discussed by governments around the world. "The business climate is changing too, and the results highlight some of the fundamental issues facing businesses in the coming years. One of the real turning points will be what happens in Bali at the United Nations Climate Change meeting,” Popham said. The survey also highlighted the importance of reputation as a key driver for businesses to tackle climate change issues, ahead of even pressure from customers, which is currently limited. "It is striking from the survey just how positively businesses across all the regions view the opportunities flowing from climate change," Thomas said. "Their success in realising such aspirations will turn in no small measure on their ability to execute strategies that maximise carbon competitiveness and run with the grain of emerging climate regulation." Related articles |
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