Ongoing political debate forces corporate world to lead on climate change

Researchers at the University of Sydney Business School say a lack of political consensus and a series of extreme weather events have forced global businesses to engage with climate change as a key strategic risk.

These corporate initiatives will be the focus of an international symposium titled Climate Change: Generating Business and Organisational Responses, to be held at the Business School this week.

“Despite the widespread scientific consensus, ideological rhetoric dominates the global debate on climate changes and this is preventing the development of the clear policy that companies need for long-term investment,” said the Business School’s Professor Christopher Wright. “In spite of this, there are signs of significant progress at the international and national corporate levels.”

For example, Professor Wright cites the development of new ‘green’ products and services such as hybrid and electric cars, high-capacity batteries, wind turbines, solar cells and more efficient jet engines.

He points out that major financial institutions now include ‘carbon risk’ in their lending practices and mark down enterprises that fail to manage these risks.

“Virtually every company in the construction sector offers green construction materials; energy companies are diversifying into renewable electricity generation and insurance companies now focus explicitly on the physical and financial risks of more frequent and intense storms, floods and fires,” said Professor Wright.

Andrew Hoffman, Professor of Sustainable Enterprise at the University of Michigan, adds that many of the world’s major companies are now seeking to mitigate carbon emissions and adapt to changing markets and “the physical consequences of climate change”.

However, Professor Hoffman, who is taking part in the symposium, also warns that in the longer term, corporate innovation requires a clear regulatory structure to thrive and prosper.

The symposium will open with a keynote speech on the evening of 20 March and will run all day on 21 March. For more information, click here.