Climate Action 2010-2011

Finance and Markets
Change starts in the workforce
Speaking of the need for business engagement, Georg
Kell, executive director of the UN Global Compact,
said, “While governments hold the key to setting the
right signals and incentives, it is business that provides
the solutions we need ... Now is the time to support the
many efforts that already exist, to ensure that low-carbon
innovation is shared widely and to mobilise those still
sitting on the fence. We cannot afford to wait any longer.”
Nor was this just a brandfest of the biggest corporate
brands; many present also pointed to their role in
encouraging action from their suppliers and SMEs. José
Luis Prado, president of Gamesa, said, “We recognise the
role that big corporations have in changing supply chains
so that small and medium enterprises can fully participate
in the green economy”.
Gone are the days when
business was afraid to articulate
a brave new global vision.
Behavioural change and the power of engaging
employees also emerged as key issues. The Volvo Group’s
Magnus Kuschel, managing director of Commute
Greener, emphasised, “We recognise the possibility
we have in changing behaviours, starting from our
companies. We can walk the talk and enlist the hundreds
and thousands of employees that work for our companies
as solution providers”.
Gone are the days when business was afraid to articulate
a brave new global vision. Such events now routinely end
with public declarations of commitment to climate action
and a call for strong global public policy, a level playing
field and supportive national legal frameworks.
A new force for green
The B4E Mexico business summit went a step further
by advancing a set of national policy instruments
that countries should put in place. According to the
companies present, these were:
• financial mechanisms to offset initial costs and
reallocate total costs along the life cycle of buildings;
• the phasing out of fossil fuel subsidies;
• soft loans for climate solutions;
• smart-grids, feed-in tariffs and buy-downs in energy
that send the right signals to the marketplace.
If they are not already, policymakers need to sit up and
take note. Business is increasingly differentiating along
sustainability lines and new climate allies are emerging.
For a growing number of global corporate players, action
on climate change is not a maybe; it is a must to ensure
their own long-term competitiveness.
Some companies may still face issues of trust and
charges of ‘greenwash’ and these will have to be overcome.
What is clear is that yesterday’s carbon intensive business
models will not succeed in a leaner, greener tomorrow.
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The game changers will be those who embed
sustainability throughout their value-chain and create bold
new business models to meet the complex and interlinked
challenges of resource scarcity, the needs of nine billion
people and an increasingly fragile natural world. In doing
so, they will redefine the marketplace of the future.
Yesterday’s carbon intensive
business models will not succeed in
a leaner, greener tomorrow.
None of this can come too soon, of course. But there is
a surprising amount of inspiration to be found in business
today. Green can indeed be the new gold.
Malini Mehra is the Founder & CEO of the Centre for
Social Markets. She has worked on sustainability issues
in civil society, business, and government for more than
20 years. Her experience ranges from major international
NGOs such as Oxfam and Friends of the Earth, to
working in the UN and in government. While at the
UK government, she initiated the pioneering Sustainable
Development Dialogues with China, India, Brazil, South
Africa and Mexico. She also served as adviser to former
UN Secretary General, Kofi Annan, on UN-civil society
relations. At present, she serves on a number of advisory
boards including major companies such as Unilever, BHP
Billiton and Kimberly-Clark.
The CSM is an independent, non-profit dedicated to
making markets work for the triple bottom line- people,
planet and profit. Through offices in India and the UK,
and an international network of partners and associates,
CSM works to accelerate the transition to sustainable
development. CSM’s primary constituencies are domestic
industry and stakeholders in developing countries,
and Diaspora communities in industrialised countries.
Founded in 2000, CSM has been at the forefront of
climate mobilisation and advocacy in India promoting a
pro-active leadership agenda by the country. CSM’s 2009
film, ‘In Good Company’, profiles emerging corporate
leadership on climate change in India featuring both
household names and newcomers. CSM also hosts the
India Climate Portal and publishes the annual ‘Who’s
Who in Climate Change in India’.
Centre for Social Markets
A-1, Hidden Nest, 16 Leonard Lane, Richmond Town
Bangalore, 5600 025, India
Tel: +91 80 40918235
Email: malini@csmworld.org
Website: www.csmworld.org
www.indiaclimateportal.org
www.climateactionprogramme.org