B2B Marketing - 07 February 2007
We live in an age when climate change is unquestionably the most serious threat facing humanity and the real effects of our carbon-intensive lifestyles are now being recognised.
Climate change is not just an issue for those sectors or companies that are traditionally linked with the issue, such as oil and gas. Increasingly it will impact businesses in three key ways: regulatory risk (where for example a company may be subject to emissions regulation and buildings compliance); physical risk (such as the impact on property and insurance costs); and business risk (including the impact of climate change exposure to brand value and reputation).
The CEO of GE has effectively staked his company's future on its ability to ‘define the cutting edge in cleaner power and environmental technology’. GE has promised by 2010 to double its research spending on cleaner technologies to $1.5 billion annually and double its sales of environment-friendly products to $20 billion annually.
The CBI has recently set up a Climate Change Task Force including members such as Ben Verwaayen, of BT, Clara Furse of the London Stock Exchange and Peter Redfern, of George Wimpey Plc. BP has also said it will direct some 5 percent of its investment over the next 10 years into clean energy e.g. low carbon energy sources like wind.
The emergence of global warming as a mainstream issue now adds a whole new dimension to the brand valuation equation. There is an opportunity for brands to really differentiate themselves regarding climate change, but it will mean adopting a forward-looking mindset that takes account of the risks, the issues and the longer-term opportunities. Balancing this with the seemingly incessant short-term demands of shareholders will be an interesting challenge.