Does Climate Change really matter to Corporates?

There has been a huge iota of buzz concerning the ‘greening’ of the corporate sector over the last couple of years. Sustainability Reporting has been made mandatory in a lot of countries including India. Its the era of the comprehensive Triple Bottom Line Reporting, which includes healthcare and human rights indicators, and parameters for reporting vary from industry segment to industry segment.  A massive degree of public consciousness has risen over Environmental matters since there is a critical mass forming in all tiers of society that environmental commons are linked to social equity with the Greenpeace’s of the world making a difference. Media plays an enormous part in bringing Environment to the first page.  Now a days each corporate has a Corporate Social Responsibility division which looks after the Sustainability affairs, which is eventually linked to Corporate Communications. Climate Change of course is a master variable of a game changer. Every single facet on this planet will be impacted; food, water and energy, influence massive human migration and civil conflict. These are essentially State topics and the headache of sovereign nations.   Its  a Global enterprise; Kyoto, Copenhagen, Cancun and the theater of environmental politicking in its full glory.

As Carbon Dioxide and other Greenhouse Gases are stock pollutants with CO2 having a half life of a hundred years, all the accumulation of these stock pollutants since the 1750’s (industrial revolution) were the sins of the industrialized world which countries like Maldives, Tuvalu and Bangladesh are suffering the retributions of it. But we have one planet to live in, and Climate Change is happening under our feet even if we do not notice it. Large Multinational Conglomerates pay lip service to Climate Change issues by employing consultants to measure enterprise wide CO2 releases and neutralize it by buying carbon credits and making it seem on paper that they are carbon neutral. It is buying atonement for sins committed. The truth is that very few corporate executives take the environment seriously.

The Electricity which power corporations comes through the water-electricity nexus, and water cycles are impacted by climate change. Weather patterns change, cause more vector borne diseases and thus makes for more employees to take sick leave, this makes for loss of productivity. Entire communities are lost in flash flooding and typoons. Industries lose capital assets in a flood or a hurricane.  Insurance companies now offer financial instruments vis-a-vis climate change insurance to companies. Globally distributed supply chains get impacted by climatic variations, food supply chains are the most drastically hit.

It is time that Climate Change is taken slightly more seriously in the boardroom


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s