Climate change:a corporate response

31 March 2009IEMA, Bury St Edmunds

Andrew Kluth

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Who I’ve worked for

• Hong Kong Government– Solid and chemical waste management– Territorial development– Nuclear safety negotiations

• Jarvis plc– First environment strategy– DJSI Global Index

• Royal Mail Group– Carbon management– First sustainability strategy

• Corporate Edge/ Likemind– Virgin Media, EDF Energy, Johnson Matthey, Alliance Boots

• Halcrow Group– Integrated sustainability strategy

3Apollo 17, 7/12/1972

The Blue Marble

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A resource-constrained world?

USA

EuropeanUnion

China

Malawi

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What we use the resources for

Source: www.ecologicalfootprint.org

USA 2003 footprint

Cropland

Grazing land

Forest: timber, pulp and paper

Forest: fuelwood

Fishing ground

Carbon

Nuclear

Built-up land

China 2003 footprint

Cropland

Grazing land

Forest: timber, pulp and paper

Forest: fuelwood

Fishing ground

Carbon

Nuclear

Built-up land

UK 2003 footprint

Cropland

Grazing land

Forest: timber, pulp and paper

Forest: fuelwood

Fishing ground

Carbon

Nuclear

Built-up land

Malawi 2003 footprint

Cropland

Grazing land

Forest: timber, pulp and paper

Forest: fuelwood

Fishing ground

Carbon

Nuclear

Built-up land

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Where we use the energy

Proportion of energy use in USA in each sector

21%

18%

33%

28%

Residential 

Commercial

Industrial

Transportation

source: Energy Information Administration: http://www.eia.doe.gov/emeu/aer/consump.html, table 2.1a

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What we use our energy for

Energy consumption in the US by sectorSector Name Description % Major uses

Industrial: 33% of total

Facilities and equipment used for producing and processing goods

22 chemical production

    16 petroleum refining

    14 metal smelting/refining

Transportation:28% of total

Vehicles which transport people/goods on ground, air or water 61 gasoline fuel

    21 diesel fuel

    12 aviation

Residential:21% of total

Living quarters for private households 32 space heating

    13 water heating

    12 lighting

    11 air conditioning

    8 refrigeration

    5 electronics

    5 wet-clean (mostly clothes dryers)

Commercial: 18% of total

Service-providing facilities and equipment (businesses, government, other institutions)

25 lighting

    13 heating

    11 cooling

    6 refrigeration

    6 water heating

    6 ventilation

    6 electronics

source: US Dept of Energy, various publications

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The people problem

• “Global ecosystems face collapse”• “Planet enters ecological debt”• “Climate set for sudden shifts”• “Billions face climate change risk”• “Carbon emissions show sharp rise”• “Arctic summers ice free by 2013”

• The rise and rise of the Keeling Curve

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Whose problem is it? Ownership

• “A child born in a wealthy country is likely to consume, waste, and pollute more in his lifetime than 50 children born in developing nations.” (Archbishop George Carey)

• Small changes, big impacts

• 80% emissionsreduction – not enough?

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Consequences of current world trajectory

Key Uncertainties Potential Consequences

Whether an energy transition away from oil and gas—supported by improved energy storage, biofuels, and clean coal—is completed during the 2025 time frame.

With high oil and gas prices, major exporters such as Russia and Iran will substantially augment their levels of national power, with Russia’s GDP potentially approaching that of the UK and France. A sustained plunge in prices, perhaps underpinned by a fundamental switch to new energy sources, could trigger a long-term decline for producers as global and regional players.

How quickly climate change occurs and the locations where its impact is most pronounced.

Climate change is likely to exacerbate resource scarcities, particularly water scarcities.

Source: US National Intelligence Council, November 2008; Global Trends 2025: A Transformed World

Relative Certainties Likely Impact

Continued economic growth—coupled with 1.2 billion more people by 2025 — will put pressure on energy, food, and water resources.

The pace of technological innovation will be key to outcomes during this period. All current technologies are inadequate for replacing traditional energy architecture on the scale needed.

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Stakeholders

Consultant

Clients

Communities

Suppliers

Professional bodies

Employees

Regulators

Current

UK Regions

ProspectiveIndividual

Corporate

Geographical

Interest

Partners

Global National Local

EmergingAware

Competitors

Aware and active

Aware and PR

Key relationship

Other relationship

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Definition

• Stakeholder engagement• Issues• Objectives• Performance• Communication• Governance• People• Leadership• Clients and markets

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Clarity

• Do the job well• Tell people about it

• Engagement– internal– external

• Predictability– Reporting

• Performance• Human stories

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What can I/you do?

• Home– less water– less energy– less heat– less waste

• Travel– more efficiently – less fuel– less often– less far

• Lifestyles– buy less – buy better– use longer – use again– campaign for sustainability

• Planning– greater efficiency– better urban planning

• Energy– more renewables

• microgeneration• large scale wind &

solar– what about nuclear?

• Natural resources– better protection– reforestation

• Agriculture– less destructive practices

ideas adapted from wwf’s oneplanetfuture and Pearce, F. The Last Generation (2006), Eden Project Books

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Climate change: a systems issue

Ten Guiding Principles• Zero Carbon• Zero Waste• Sustainable Transport• Local and Sustainable Materials• Local and Sustainable Food• Sustainable Water• Natural Habitats and Wildlife• Culture and Heritage• Equity and fair Trade• Health and Happiness

source: http://www.wwf.org.uk/oneplanet/about_0000003949.asp

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The opportunity to lead

• Sustainability does pay“Most executives (57%) say that the benefits of pursuing sustainable practices outweigh the costs”…involves “a shift away from defensive behaviour towards more active exploration of the opportunities sustainability can present”

• Execution is problematic“On a range of environmental and social outcomes less than 10% of respondents rated their efforts as outstanding on each, barring public relations”

Source: Economist Intelligence Unit (2008) Doing good: Business and the sustainability challenge, p.5

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Are we wasting our time?

Some thoughts from Gandhi

• Whatever you do will beinsignificant, but it is veryimportant that you do it

• You must be the changeyou want to see in the world

Thank you