Got ideas on how to make green buildings go mainstream ?the World Green Building Congress is asking on Twitter and is ready to offer a $10K prize. It is being run by the ClimateCoLab as a contest.
This definitely inspires to come up with another Green Business Idea.
A credit rating is an evaluation of the credit worthiness of a debtor, especially a business (company) or a government, but not individual consumers. The evaluation is made by a credit rating agency of the debtor’s ability to pay back the debt and the likelihood of default. Evaluations of individuals’ credit worthiness are known as credit reporting and done by credit bureaus, or consumer credit reporting agencies, which issue credit scores. Credit ratings are determined by credit ratings agencies. The credit rating represents the credit rating agency’s evaluation of qualitative and quantitative information for a company or government; including non-public information obtained by the credit rating agencies’ analysts. (Wikipedia)
An Energy Efficient Building or Green Building as it’s popularly known, can save upto 30% in electrical consumption and saves around the same percent, water with judicious and clever use. The two most critical commodity in the World today.
Now, if a company is able to save on its Operational Expenses, it would naturally reflect on the profit graph. And if the company is profitable its ability to meet financial commitments becomes strong. Lets analyse this further.
The Confederation of Indian Industry also known as CII and its other bodies such as the CII-CESD and IGBC have for the past many years doing a superb task to bring about a paradigm shift in the thinking of the populace to adopt sustainable methods to conduct business. There has been a varying degree of success. But it is not enough to make the desired dent to limit and reverse the trend of Climate Change.
One of the enormous barrier is resistance to change. And to consider every change which requires some degree of extra expenditure as very risky. Because the result of the change on making a building energy efficient, is a process spread over a long time period.
This resistance to certain degree also occurs. because the traditional business class in India do not train themselves in any Business School.(60% of top CEOs in India do not have an MBA degree: INSEAD and HBR study😉 Another report says – The typical CEO in India is male, around 56 years old, and with a degree from a local university — mainly IIT or IIM. Only 24% have an MBA. The most popular university subjects studied by CEOs are business, mechanical engineering, and finance.(read more).
It is more of dynastic wisdom handed down over generations. And thus each business creates their own ideas for success and deviations from that set of wise counsel is at times socially as well as circumstantially difficult.
Thus the old adage – to cut iron we need iron, can be looked at to find the formula of success. Thus we must provide incentive which the average CEO can relate to and would also like to flaunt.
THE CREDIT RATING.
The more powerful the credit rating more would be the incentive for people to follow the diktats to go Green.
Recently the Government of India has initiated a movement
The Economic Times NEW DELHI: It will be mandatory for all state governments to implement by 2017 the minimum requirements for energy efficient design and construction set by the central government to meet the challenges of depleting resources, increased urbanisation and rapid construction, according to a top official. Shifting its focus to building energy-saving structures, the Bureau of Energy Efficiency (BEE) of the power ministry has made mandatory the Energy Conservation Building Code (ECBC) which acts like a “cross-check for building designs and specifications” to reduce the energy consumption through design and choice of material and equipment.Under its ambit are components like building envelopes (wall, roofs, windows), lighting, heat ventilation and air conditioning and electrical systems.Introduced in 2007, on a voluntary basis, the code sets the minimum energy standards for new commercial buildings with a connected load of 100 KW. Besides new buildings, it also covers old buildings which are getting renovated and/or extended.
Although a little disappointed that we have given ourselves beyond UNFCCC Paris COP. Where the wishful thinking of all climate change advocates would be to see the strict implementation of the Durban Declaration…
The United Nations Climate Change Conference, Durban 2011, delivered a breakthrough on the international community’s response to climate change. In the second largest meeting of its kind, the negotiations advanced, in a balanced fashion, the implementation of the Convention and the Kyoto Protocol, the Bali Action Plan, and the Cancun Agreements. The outcomes included a decision by Parties to adopt a universal legal agreement on climate change as soon as possible, and no later than 2015. The President of COP17/CMP7 Maite Nkoana-Mashabane said: “What we have achieved in Durban will play a central role in saving tomorrow, today.”
…. but the news coming close to the heels of President Obama’s Climate Change Action Plan, it was indeed a good news.
While on June 2, the EPA released a proposal that will set the first-ever national carbon pollution standards limits for America’s existing power plants. Danger already lurks in the shape of Tony Abbott !
Tony Abbott seeks alliance to thwart President Obama on climate change policy – Tony Abbott is seeking a conservative alliance among “like-minded” countries, aiming to dismantle global moves to introduce carbon pricing, and undermine a push by US President Barack Obama to push the case for action through forums such as the G20. ……The combined front would attempt to counter recent moves by the Obama administration to lift the pace of climate change abatement via policies such as a carbon tax or state-based emissions trading. It is a calculated attempt to push back against what both leaders see as a left-liberal agenda in favour of higher taxes, unwise interventions to address global warming, and an unhealthy attitude of state intervention.
It would be perhaps one of the most defining moment for India to take up the leadership position and support what President Obama seeks to do, and in our Prime Minister Shri Narandra Modi we have a person who has an equally strong vision and a majority mandate. Who can do this.
The biggest bogey which any opposition raises is loss in job and money. And history has proven time and again this theory wrong.
And when you compare this to the report the World Economic Forum –
A growing consensus is emerging among the scientific and business communities that weather and climate extremes are on the increase, and that climate change contributed to a number of recent natural disasters. These include the European heat wave of 2003, and drought in East Africa in 2011 and in 2012. Losses resulting from climate-related disasters remain unacceptably high – in economic, social and human terms – making it imperative to build resilience, particularly in vulnerable areas.
The World Economic Forum’s Global Agenda Council on Climate Change’s report, Climate Adaptation: Seizing the Challenge, captures some of the latest thinking in the field of climate adaptation and financing, with the goal of assisting decision-makers in the public and private sectors gain a better understanding of the issue.
Its Key findings completely deflates any debate to go against the logic of not working towards abatement of Climate Change.
1.Reductions in emissions of greenhouse gases are not happening fast enough. Preparing societies for the impacts of climate change, i.e. adaptation, must therefore happen in tandem with mitigation efforts.
2.Indices can inform decision makers on where climate adaptation is most necessary, and how best to allocate adaptation investments, including for prioritizing pre-disaster efforts. African nations, particularly Sub-Saharan, consistently emerge as the most vulnerable to climate change and the least ready to adapt, while a clear difference appears between developed and developing nations. More and better national data, particularly in developing countries, is required, while obtaining local data for comparison, for example across cities, may be a challenge. Metrics that are used to assess adaptation need can have conflicting aims and conclusions but competing methodologies can shed new light on seemingly intractable problems.
3.Up to 65% of the increase in the projected losses due to climate change could be averted cost effectively through adaptation investment. Decision makers need to look at “total climate risk” when considering adaptation investment and finance – this takes into account existing risk, future risk due to development and additional risk due to climate change.
4.Private sector funding will be needed to finance investments – the cash-strapped public sector will not be able to provide it all. Public sector funding can be leveraged effectively however and the public sector can also provide a framework that makes this investment attractive.
5.Water, food and energy systems are inextricably linked and so the use and management and particularly shortages of one can affect another, e.g. water shortages can affect crop yields, power generation and industrial processes. It is therefore crucial to consider each part of the water-food-energy nexus when making an investment or policy decision so that another part of the nexus is not compromised. Meanwhile climate change is stressing the nexus. Addressing this is beyond the scope of individual governments, companies or NGOs acting alone. Since awareness of the nexus is low, the current behaviour of companies or governments may not take it into account and therefore stress it further. A new approach is therefore required that involves multiple stakeholders with the aim of addressing these issues in a co-ordinated and holistic manner.
One does not have to be a scientist and least of all a myopic politician – corporate combine, engaged in short-term gain to understand that without FOOD & WATER even a Midas touch has no value.
But we usually read Fables and Moral stories as children. As our PM said, it’s time we bring our Culture to fore and start teaching them in the MBA schools!
For disconnect from ones culture is the root cause of Climate Change! (click to read more)