Corporate Social Responsibility

Climate change can be tackled, says UN report

Last year’s Stern report won a pretty solid consensus among governments that action of some kind needs to be taken on climate change if all manner of unpleasantness is not to follow. A new report from the United Nations (UN) reiterates the warning that dramatic results of climate change are already visible, and effects such as increases in extreme drought and flooding will over the course of the century gain in frequency and severity depending on the levels of greenhouse gas concentrations in the atmosphere. The report does, however, suggest that some of the worst effects of this can be avoided if action is taken immediately.

The report, made by the Intergovernmental Panel on Climate Change, calls for concerted international action, and emphasises the need for a joint effort between government and business. Among the report’s major implications for business is that, while some companies are adopting a wide variety of voluntary actions to limit carbon emissions, on their own these generally have limited impact on national or regional emissions.

Furthermore, the report finds that, while some further action is clearly necessary, there is no blanket solution: the applicability of the available solutions depends on national circumstances.

However, experience from implementation in various countries and across a range of sectors does give an indication of the advantages and disadvantages of various approaches. For instance, while noting the limitations of voluntary agreements between industry and government, the report adds that some recent agreements have accelerated application of clean technology and led to measurable reductions in emissions. Furthermore, such agreements raise awareness among stakeholders and have played a role in the evolution of many national policies.

It was also argued that government support through such measures as tax credits, financial contributions and standard setting is crucial for the effective development of clean technologies.

The Confederation of British Industry recognised  the need for a concerted approach to the issue. Michael Roberts, business environment director at the employers’ body, said: “The report signals that there are barriers to realising the range of opportunities identified and that we all – consumers, businesses and governments – have a role to play in overcoming these obstacles. The debate now needs to be focused on action to address these challenges”.

June 2007