As part of ADAS CSR strategy, we are working closely with colleagues in the organisations that supply and support our business. Paul Turner of Lloyds TSB shares his views on climate change and the implications for businesses.
I’m sometimes asked if I believe that climate change is happening. It is not a matter of belief. Whilst the scientific evidence is compelling, the fact of the matter is that the environment in which business is operating is changing as governments the world over put in place targets and legislation to address the threat of global climate change.
But was it climate change that caused the rapid increase in the price of certain food commodities last year and was it climate change that caused Coca Cola to announce it’s aim to become water neutral in its manufacturing process? The simple truth is that there are a number of factors at play that businesses have yet to fully understand; factors that will impact on so may aspects of the way that we live, work and do business.
With the growing global population, the need for more food, the increased demand for meat, the pressure on water resources, the shift to urbanisation, global supply chains and the increasing demand for energy and raw materials – even without climate change businesses the world over will have new and unprecedented challenges. Overlay climate change on an already complicated picture and you have what some commentators describe as a ‘perfect storm’. For the ‘End of the world’ brigade there is a wealth of material here but looking through a different lens, the opportunity for forward looking business leaders is significant.
But what timeline are we talking about? A leading Ice Hockey player attributed his success to ‘skating to where the puck is going to be’ Given the environmental system pressures, will the puck be in high carbon resource inefficient business models and sectors or will the puck be in low carbon, resource efficient business models and sectors. If the latter, then what will the implications be? The simple answer to a complicated question is that every business in every sector will need to make some coarse adjustments and the ones that are able to seize the opportunities in the short term should see lower operating costs, new market and product opportunities, improved staff retention and recruitment and enhanced brand and reputation.
For me, the green puck means that those businesses that have yet to realise that the game is changing are skating on increasingly thin ice.
Paul Turner is Head of Sustainable Development for Lloyds Banking Group – Wholesale Division