Climate Change Corner
Business Response to Climate Change
A Climate Change Business Forum study in 2010, showed over 70% of the business community in Hong Kong recognized climate risks to their business and 82% foresaw market opportunity arising from climate change. However, only 31% planned to make investment or take actions in the next three years. A similar survey was conducted in 2011 revealing an increase in apprehension of extreme weather risk and a higher willingness to take actions against climate risk. However, only 14% report a demand for low-carbon, energy efficient products and services today. A significant majority (69%) anticipates this demand increasing in the next three years.
Interestingly, nearly half of the businesses surveyed are familiar with Hong Kong’s proposed carbon intensity target and the majority of them believe the target should be more ambitious. It implies that business is ready but seeks more Government leadership. With the successful establishment of the Durban platform and China’s 12th Five-Year Plan, it is clear that the drive towards a forward-looking climate strategy will remain strong.
Many companies, like those in the Swire Group, are aware of the nature of the risks and opportunities that are developing. Potential areas include reducing carbon in the supply chain, acquiring or supporting new technologies, altering business practices, and developing energy saving products or services. Many corporations are increasingly active in particular the operating companies of the Swire Group. They are recognised as pioneers in working with its supply chain to reduce carbon emissions. Its food and beverages giants have revealed plans to produce packages from renewable materials, reducing waste, and are focusing increasingly on their water use. Being one of the leaders in the property industry, significant progress has been made on energy efficiency and incorporating technologies at the design phase, while its airlines are actively pursuing sustainable jet fuel alternatives. The marine sector’s Sustainable Shipping Initiative, its group member identifies industry initiatives for a sustainable future, It would seem from these indicators that it is sensible for business to bet on a low carbon future rather than a high carbon future.
At Swire we believe stakeholders, from consumers to investors, want and need to understand more about companies’ approaches to sustainability. The Swire Pacific 2011 annual report is integrated and articulates our aspirational goal of a zero net environmental impact. This underpins our strategy to create viable businesses for the long term. Traditionally sustainability has been seen as an obligation or a social responsibility for business. More now realize that it is an opportunity to improve the bottom line and increase competitiveness. We believe leading companies will integrate the concept into their business strategies and seizethe opportunity to turn climate change risks into sustainable business streams. ======
This article is contributed by Philippe Lacamp of Swire Pacific with the co-ordination of the Sustainable Development Division.