Solutions, not words required from Vendor's response to environmental risks

While the Carbon Disclosure Project (CDP) praised low carbon sector industries for the nuance of their responses to the CDP5 questionnaire, many of these responses appear rather shortsighted or incomplete in nature.

One FT 500 company in the IT sector had an almost apocalyptic response to the CDP’s question to what commercial risks climate change present to the company: “Losses could also be caused by power shortages, telecommunications failures, water shortages, tsunamis, floods, typhoons, fires, extreme weather conditions, medical epidemics, and other natural or man-made disasters, for which we are predominantly self-insured.”

Yes, natural disasters could increase with continued Green House Gas (GHG) pollutants, but such an offhanded, sweeping laundry list of natural disasters serves only to minimize the commercial and environmental impact of this phenomenon.

At a time of increasing energy prices and a rise in environmental consciousness, vendors certainly need to talk the “green” talk, but help is needed to link these words to reality and a framework that connects with its targeted audience, i.e. IT and sourcing professionals, who while socially responsible, are charged with delivering business solutions that enhance their company’s market position and financial performance.

In lieu of platitudes, discussion of potential commercial risks brought on by climate change must be framed in the context of its material impact to business continuity and those solutions currently available or in development by ICT vendors to help mitigate those risks for itself and its customers.

Comments

[Euan Davis]

I would think that one of the biggest commercial impacts of climate change will be around compliance. I believe we will see legislation compelling business to cut carbon drastically and it then becomes an issue of compliance. Utility firms today for example that make errors on declared carbon are fined half a million euro's for each percentage point in error. Costs and fines will make climate change a business issue