Why take action?

The opportunities of a low carbon economy include:

• Cost savings - Addressing direct and indirect carbon emissions can reduce energy, transport, waste and other operating costs. 
• Access to new markets - According to the Stern Review, markets for low carbon products and services are likely to exceed $500bn per year by 2050. 
• Improved reputation - As customers become more aware of the carbon footprint of their purchases, brands that offer products and services at the same price as their competitors, but with a lower carbon impact, are more likely to succeed.

In addition to opportunities, climate change also creates a number of drivers to change business-as-usual.   The Stern Review, published in October 2006, highlighted the risks of inaction; most notably that climate change could shrink global economies by 20%.  Drivers for behaviour change include:

• Regulation - Governments across the world are putting measures in place to reduce the amount of greenhouse emissions. Cap-and-trade schemes are being extended. The result for any business exceeding its limits will be direct financial liability.
• Damage to physical assets - Extreme weather conditions will mean costly repairs, disruptions to infrastructure and increases in insurance premiums.

Companies that understand the issue and have the foresight to act quickly will be best placed to thrive in the future.