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UNFCCC – A Little Advertisement can help save Earth.


Every time the Television Set is switched-on a few advertisements catches ones attention :-  Bodilicious women hovering all over the Man who uses a Deodorant. A toy that keeps on running, while all other cell batteries fail. Insects drop dead when a cannister sprays the deadly liquid and the home is cockroach free for a fortnight.

The target audience are testosterone active youths; bright and active kids and the smart and aware house-wives.  All potential game changers if targeted to understand and support the cause of Climate Change. Yet all the division combine of the UN which are fighting to keep their nose up form sinking under the 3.5°C temperature rise, strangely find it difficult to gather the resources required to create interesting advertisement which can turn the tide towards a cleaner planet. If we count only the TV audience in India, it is a respectable number by any standards to bring in any change they desire.

With all due respect, it seems the various arms of the UN have cocooned themselves with the thought that all teenagers watch TV programs similar to the CNNGoing Green or sit up with popcorn in hand to understand the documentaries beamed by the Discovery Channel or National Geographic Channel and the likes on environment. I am sure they are that not naïve to even think that the children and the house-wives watch NEWS channels. At least 90% of young Indians don’t.

Even if they did, the plethora of Indian News channels are too busy breaking each others TRP’s  with silly ‘breaking news’  (most of the time) to bother much about the Earth breaking apart in the meanwhile. There was not even a whisper about the UNFCCC -Durban, in many such ‘News’ channels. I can not speak for any other Nation but in my country, News channel doing a regular feature on Environment ?no chance ! At least 90% won’t. The 10% who do, only a couple are completely home grown and don’t carry a hyphenated India to their logo.

While it is true that various companies in Europe have created laudable advertisement on recycling, you can find the links to them in my blog’s -must watch video; India sadly does not create or beam any, barring the  superbly popular Noika’s – Shahrukh Khan Phone Recycle Ad. Which strangely is not shown any-more. Moreover, there is a chance that if left to the product manufacturers to create advertisement on environment awareness, the view might turn out to be myopic.

So how long can the Severn Suzuki‘s of this world grow up from 12 to 32 years and yet not see the changes she asked for at the Rio’92 UNFCCC summit ? Save the standing ovation of  World Leaders, long done with leading the world towards the 3.5°C Global Warming ?

So what if, say between the typical “Saas – Bahu” ( Mother-in-law versus Wife ) tele-dramas which are hugely popular in India , advert similar to the Nokia Ad be formulated by the Climate NGOs and supported by the Government of India or better still UNFCCC  (so that it can have a world resonance), be telecast ? The advertisement can be very simple, just explaining the what- why-how of every product the people use and how to make them climate responsive. In the process of using and discarding a product.

Let us take an example based on the  advertisement I mentioned in my opening note.

Battery:  The most commonly know cell is the ‘pencil battery’ or the alkaline/ lithium -ion battery. The variation includes galvanic cells, electrolytic cells, fuel cells, flow cells and voltaic piles. Many battery chemicals are corrosive, poisonous, or both. If leakage occurs, either spontaneously or through accident, the chemicals released may be dangerous. Recycling or proper disposal prevents dangerous elements (such as lead, mercury, and cadmium) found in some types of batteries from entering the environment. In the United States, Americans purchase nearly three billion batteries annually, and about 179,000 tons of those end up in landfills across the country.

In Mumbai, India, however much as I wanted, I could find no one to take the discharged cell batteries for proper recycling. They are usually collected by the poor scrap scavengers you find hovering over all land-fills in India, and selling it to scrap dealers who use the poor people similar to the scavengers to dismantle it. Which is done in an equally dangerous manner. Same is the story for pressurised canisters. Be it medical, deodorant, insect repellent. No buyers for the cans. They end up in land -fills and reach scrap-dealers who are ill-trained and use manual labour without any safety feature for the man or environment. It would be sometime before the NEC and its Organic Radical Battery is capable of super-fast (30-second) charging and can be embedded into smart-cards and intelligent paper. And then there are batteries that can be powered by a breakfast item and are completely eco-friendly. They are not yet available to the common person.

Till such time it must become the solemn duty of the body like the UN and its various arms to create advertisements, which speak about the various hazards of irresponsible discarding as well as show the business opportunities in recycling responsibly.

This is more so because there are no practical implementable laws or actions in place which can make the common person aware of the dangers in most of the Countries. Long drawn conferences, in the hallowed corridors of power, where impassioned speeches are given are neither heard nor understood by the common person. While these meetings must be held in such a fashion is understood and appreciated, but it is difficult to fathom why it can not be made more people friendly.

The result of the UNFCCC CoP-15 meet in Copenhagen is a great example of how  the electronic media can create the awareness. Millions, all over the world for the first time ever, heard about Climate change and the acronym – UNFCCC. All that is needed is, that each time the UNFCCC meets, the people World over are aware of it and can participate instantly.

Perhaps it could suggest the ad-makers to make ads which show ‘its cool to be a responsible recycler’ with more bodilicious women hovering over the recycle guy, than the one using the deodorant! For the youth image matters. Its time the once youthful leaders think like them. As they would be inheriting the mess we  have created in our care-free years !

 
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Posted by on April 21, 2012 in Global Warming & Climate Change

 

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Renewable Energy – Empowering Women & Saving Forests.(Redux)


During the recently concluded UNFCCC , COP 17 at Durban, that Climate change is a clear and present danger with Humankind pushing the limits of the Earth’s ability to cope with man-made pollution, was well documented by each Nation which spoke at the Plenary. And it was underscored with a grim report by the IPCC -4th assessment draft.

English: Adapted from a portion of Figure 1 in...

The year 2017 from where Human Economic progress will be trapped into a high carbon growth, which would compound and complicate the situation into a series of worst case situations year on year, each year causing great socio-economic suffering. The Stern Review details it for those who want to know more.

It is also mentioned, the worst of Climate change, caused due to unprecedented pollution the Human race produced in its quest to find a “safe – healthy – prosperous” life style; would affect those who neither had/has the means nor the thought process to live such life-styles; the indigenous people in the Brazilian rain-forest, the ethnic groups in wild and still  beautiful  and untouched Africa and the “poor” Nations and  economically weaker class of the societies.

While it is true that when one measures “development”  through the all-pervasive Capitalist Economic theory the World follows in its trade; the definition of poor would be a Man or Nation with no “money”, “cash” or whatever the experts like to call it. However today, one must pause and think on the terms “Rich” & “Poor” in the Climate change context.

Fresh Air, Clean & Sparkling Rivers, Beautiful Blue Sky, Lush Green Meadows, rich and varied Flora & Fauna are (strangely! – they don’t have the money to pay for such nice things, one might say ) with the POOR and UNDEVELOPED or UNDERDEVELOPED Nations, States, Provinces.

And what is most striking is that the RICH just don’t have it around them anymore. They need “treated & bottled”  Water, “filtered and air-conditioned” Air;  Zoos, which one needs to drive down ( provided one is in town/ else a planed tour itinerary during holiday season ) and an “all expenses paid” incentive ticket  to fly to these very underdeveloped/undeveloped  provinces & Countries to have a glimpse of the Blue Sky. Even virgin snow is hard to come by as by morning layer of sooth from Car exhaust ruins its colour.

It’s perhaps time that the UN & IMF, World Bank and those snooty Credit rating Companies, redefine which are the Bankable and Rich Nations.

Having said that, let the present so-called “Rich & Developed Nations“, be pressured by the right thinking citizens of those countries to save the very things they all want – Safe, Healthy & Prosperous life-style. And we just have SIX years  left to move the clock back-wards to meet that.

So what is it, in my opinion that needed to be done ? Simple, help the poor with their livelihood . Each day thousands of Women & Girl Child walk miles to fetch potable water & fire-wood. This happens in almost all South Asian & African Countries. It perhaps true for parts of South America too.

Many sea /river societies in Africa find sustenance through trade in Fish. The big and fresh catch is usually traded with the agents of Multi Nationals for pittance. The smaller catch is then sold in the local market, where it’s “smoked”  over burning wood. This practice over the years has decimated the forest around these societies. And many such examples have been documented across nations. Soon even these Least Developed Nations and societies would have no tree cover, being poor and economically weak finding the right solution would not be  easy. It would be next to impossible and the first of Climate Change Refugees would be getting ready for exodus, creating further aggravation.

But among all these gloom, there is hope. A ray of hope and a whiff of opportunity – Renewable Energy; namely Solar & Wind.

With the Green Climate Fund, a nascent reality; the LDC’s must create Program of Activities which is similar to what is now on going in India. TERI the think- tank institute headed by Dr. Rajendra Pachauri himself, has a program called “lighting a billion lives”. Here Solar powered lanterns are given to villages across India.

Gaushala, Goshala run in Nabha and its attache...

Earlier on India has/had a program under which Bio-gas which is produced from cattle manure ( Gobar -gas ) and piped  into homes for cooking. Now this is a finite resource because it is quantity dependent. It is therefore successfully implemented in villages which have cattle rearing as their primary business. In the State of Gujrat, India; its a great success, as AMUL created a business revolution around dairy and animal husbandry is a roaring business there.  However not every village can have cattle which would be producing to fulfill the requirements of energy for the entire village. Therefore the use of RE mostly Solar, or a Wind + Solar Hybrid could be the solution for each and every village. Not only in India but in Africa &  other countries too. By devising a Solar Tree ( roof top if applicable or possible  ) and drawing cables to each and every house hold in the village, electricity could be provided. Add cheap yet sturdy induction stoves and you are giving these societies a chance.

Why induction stove one may ask. Simple, as per the report from the Department of Energy United States, an induction stove is nearly 90% efficient in sending the heat where it is required the most – to cook the food. Whereas in a butane / propane , the gas we find in LPG cylinders, only 40% is efficiently used for the purpose of cooking. The rest heats up the stove, pan and the air around the flame.

Now considering that 1 kiloliter of LPG = 7.4 KWHr ( kilo watt hour) of energy and 1 kilogram of LPG = 12.68KWHr. And BTU ( British Thermal Unit ) a measure to calculate heat. Lets look at an example given below to support my idea of a “Solar Stove”.

Domestic gas in India contains – 14.2 kilogram = 180.05 KWh of energy

BTU/Hr = 180.05 x 3412= 614330.60 BTU/Hr

Gas heating efficiency is 40% only. Therefore 40% of 614330.60  =  245732 BTU/hr is actual usage from one LPG cylinder.

Induction heating efficiency is 90%.

Say  a SPV of 2kWp x 5 solar hour  = 10kWh, of energy. ( In India we have an average of  5 hour of good Sun-shine ) which can be stored.

Now if we use an induction stove of 2.2Kw rating and draw the solar energy

Induction of 2.2 kW= to a gas burner rated at almost 16,000 BTU/hour; ( Refer:Induction Cooking:Selecting a Unit )

Therefore total energy received per hour = 10 /2.2 = 4.5455 x 16000 = 72,728 BTU / Hour is actual usage.

Now any expert would tell you 72,7288 BTU is a lot of cooking heat with a very nominal drawing of energy.

a 30-inch four-element induction unitThe rule of thumb from gas-energy values: induction-element kW times 7185 equals gas in BTU/hour.

This is just with a 2.2 Kw induction stove, naturally a higher rated induction hob would provide far more energy.

The least-expensive 30-inch (four-element) induction cooktop has:

  • a 1.3-kW small element (between 9,000 and 9,500 BTU/hour),
  • two elements of 1.85 kW each (well over 13,000 BTU/hour), and
  • one element of 2.4 kW (over 17,000 BTU/hour).

The least-expensive 36-inch (five-element) induction cooktop has:

  • a 1.2-kW small element (8,500 BTU/hour),
  • a medium element of 1.8 kW (13,000 BTU/hour),
  • a larger element of 2.2 kW (16,000 BTU/hour),
  • and two elements of 2.4 kW (over 17,000 BTU/hour).

The very highest-power gas burner to be found in the residential market is 22,000 BTU/hour, and that’s a sort of freak monster, whereas a 3.6-kW and 3.7-kW element–which is around 26,000 BTU/hour of gas!–is found in many induction cooktops.

From the above calculation one can see that at village level where food is only cooked for sustenance, the energy used by each house hold would be at a minimum. If the Solar panel & stove is sized properly as per the societal needs in each society  across Nations, two most important changes would perhaps take place.

1. The Girl child & Woman would no more need to chop down trees for fire-wood, thus help heal the immediate environment.

2. No smoke from fossil fuel would be emitted into the atmosphere.

So this concept if implemented rightly, might just begin to turn the tide as Worldwide some 2.7 billion people rely on traditional biomass for cooking and heating, and 1.4 billion have no access to electricity.

So what’s with the electricity? Well if the 1.4 Billion were never introduced to the  oil and coal based electricity we would to Earth that much good. And now that we know the effective use of a new kind of Solar Stove; with cooking time reduced and need a minimum, may be some of that Solar power from the solar tree could light up a LED lamp in the village home.

And if we bring it to the cities, with the price of commercial LPG at Rupees 1600 / cylinder of 19kg. We may find some economics in this too, while reducing the subsidy burden for the Government.

Are the signatory of Kyoto  Protocol listening?

 

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Clean Development Mechanism – A guide to Profit in slow Economy


The Year 2011, history would record as a year of Change. Many unprecedented changes happened around the world. In the context of Global Warming & Climate change, there were many changes.

During cold La Niña episodes the normal patter...

The UNFCCC meet at Durban, South Africa  announced that 2011 was is tied for the 10th-hottest year since records began in 1850, (Read more:http://www.azcentral.com/news/articles/2011/11/29/20111129world-growing-warmer-un-says.html#ixzz1hzDYvmH3) and that to in a “La Niña” . ( La Niña is a coupled ocean-atmosphere phenomenon that is the counterpart of El Niño as part of the broader El Niño-Southern Oscillation climate pattern. ) During a period of La Niña, the sea surface temperature is lower than normal by 3–5 °C. It is the opposite of El Niño, where the latter corresponds instead to a higher sea surface temperature by a deviation of at least 0.5 °C, La Niña is often preceded by a strong El Niño.

As the Durban meet closed, being extended by 2 days which by itself speaks volumes about the concern and dangers being faced by the OASIS, ALBA, LDC and many nations from the G77 + China. Although far too short form what the above mentioned nation groups wanted, the EU & BASIC Countries  along with the Indian Environment Minister, in a classic climax situation could get all to agree to a draft which read –

An agreed outcome with legal force, for emission reduction with common but differentiated responsibility and respective capabilities”- The Durban Declaration from the UFCCC [United Nations Framework Convention on Climate Change] COP-17.

We are with the current consumption pattern heading towards a temperature lock-down of a +4°C, Global warming of humongous proportion which could bring Armageddon for some Nations. And there would be tremendous losses in the rest, as per The Stern Review  without action, the overall costs of climate change will be equivalent to losing at least 5% of global gross domestic product (GDP) each year, now and forever. Including a wider range of risks and impacts could increase this to 20% of GDP or more. Many forecasts (http://www.global-warming-forecasts.com/2025-climate-change-global-warming-2025.php ) deal in detail on what could happen.

Whether some like it or not, the present economic model of “Capitalism” armed with Democracy is the best we have. It may not be perfect, the chaos in Europe & USA prove that, but best among the lot. Having said that, if we reverse the “Greed-a-listic” ( read unethical Capitalistic practices ) into a better business model which looks at inclusive and sustainable growth as “profit” and not the so-called Corporate thinking of  : “get-quickly- rich- and- push- everything- else- into- the- ditch” type of profit, we may yet have the chance to reverse the effect of disastrous Climate change.

To do that we must cut carbon intensity without shutting down development opportunities; Innovate development opportunities to find ways to adapt the effects of climate change; Change completely to new ways of operating in response to climate change.

With the UNFCCC ratifying the extension of Kyoto Protocol for the second phase, the carbon market ( Carbon credit ) in EU is set to grow back . From the modest € 7 to the high of €30 -50 is being predicted. Businesses and environmentalists have heaped pressure on the European Commission to bolster the EU Emissions Trading Scheme. Following a letter last week to the president of the European Commission, 15 companies and lobby groups, including Dong Energy, Alstom, Vestas and Shell issued a joint statement on Sunday, calling on the European Parliament to back measures to support the EU ETS.

As per experts the Clean Energy would be a $ 250 Billion business and by 2015 -16 we should be seeing a $ 5-6 Billion worth of business and growing by 2012 onwards.

Focusing on the Infrastructure and Construction Industry, it is well documented that the Building Industry produces 40% of the GHG and 60% of waste production can be attributed to building related activities on a Global scale.

The Urban Development Planners, Builder Associations must start taking Global Warming and the inherent economic & social risk it entails by creating Laws and Industry practices which look into eliminating fuel poverty through better building and retro-insulation;developing less polluting public transport and new sustainable transport programs in urban and rural areas;evolving more localized and self-sustaining food growth and production systems; encouraging community-owned and managed assets for energy generation, water and sanitation, resource recycling, and waste exchange (reuse);promoting regional community-owned and community-managed energy programs harnessing new technologies (bio-generation and other alternatives).

Residents of climate-friendly communities absorb the skills and capabilities that can help them strengthen community resilience to climate change, and take
advantage of new and sustainable economic development opportunities.

Taking it to the Indian context, where the economy has slowed down as opposed to a recession seen in many countries around the world. And especially the complete slowdown in the realty space in Mumbai, Climate Responsive Architecture is the best bet to improve the profit margins. However, one must be cautioned that stepping into high-technology and smarter technique adaptation is not easy. It requires a complete re-learning process and debunking the traditional methods of conducting the business. For some it would be a tall order and unless forced by legislation, would not change. However there are many who already have taken the first step towards Better Building Design and seek advice in LEED / GRIHA ; but most need to still improve their mindset from using it just as a trend to making it a mainstay in their future business policy.

It is time that civil society and state governments to focus and ask leaders in the construction industry to recognize that business can be part of the complex solution to the climate challenges we all face now and in the future.

 

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Green Climate Fund – Why it would not come for free.


Kyoto Protocol

As the Climate talks progress in Durban, South Africa under the COP17/ CMP7 of the UNFCCC, the most resonant sound emitting is the setting up of the Green Climate Fund ( GCF ) and along with it, is the impetus by most signatories to give a new life to KP2 or the Kyoto Protocol.

Although all the Countries including the USA & European Union are trying to make the right noises, there seems to be a feeling that the LDC and the other most vulnerable  Countries would be handed a plate more empty than full.

When one hears the developed countries speak, they seem rational in their thinking, when they endorse that Climate change is a clear & present danger. They all agree that abatement and adaptation are the only way forward for a low-carbon economy. Yet there dose not seem to be an agreement for the KP2 or the GEF. Why is this so ?

Form a layman perspective, what comes to mind is that it has more to do with business compulsions & economic compulsions, rather than political compulsion. Although all the positioning the political masters of various nations take, claiming the will of the people; rare would be one who actually does.

This is being proved again and again in each CAN conference. But one then has to accept the reality.Although generalization would be incorrect, I would still hazard that many other Citizens of different Nations would find resonance with the  perspective , I’m about to present.

In many countries, some politicians are either themselves successful businessmen who have then entered politics or politicians who put their relatives as proxies to their further their business aspirations. In both cases, being the law-makers they understand what policy would suit them best. This may be the case in other developing or developed countries. In fact, it is understood  that the Kennedy family were rich businessmen before JFK ran for Presidency.

Now, let us take the initiative of UNEP for energy efficient lighting. By dateline 2016 the world should be able to leave behind the in-efficient lighting methods which are in use today to go into LED and similar lighting solutions. It is important both to the developed countries which need to reduce their energy consumption and also for those who would be able to provide more lighting even with less energy generation, as in the least developed countries.

How do you get to do achieve this goal ? As per the UN officials in Durban – by legislation. So assuming each country gets a legislation in place, it would still require a marketing instrument to sell these LED. We all know that the initial cost is high. Why? Because of the high-end technology involved. We also understand that hi-tech requires a lot of expensive R&D too.

Now we have a mix of Businessmen-Politicians in one end and on the other an expensive hi-tech solution which can reduce Global warming. Add to this nearly 180 of 194 countries which are not the Developed countries. Now, to expect businessmen – politicians to give away hi-tech solutions which only they possess for free is asking too much from them!

So when you see well meaning Green technologies business houses conducting seminars in the sidelines of the Durban Conference,one feels tempted to know what would be the cost of the product & consultancy charges.

What will happen between 2012 to 2020 is that the USA, Canada, Japan, EU & Russia will sell the technology they possess. And they are eying the BASIC countries for that. As emerging and responsible countries who have initiated unilateral Climate abatement actions at home and will want to get the hi-tech technologies to be at par with the developed nations. This the once rich & developed nations are banking on.

Therefore a new treaty post 2020 which is inclusive, else not much GHG will be abated blah! blah! is doing the rounds. Historical responsibility be damned!

 

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Climate change – the most significant emerging risks facing the world today


Climate change

Climate change—often referred to as “global warming”—is one of the most significant emerging risks facing the world today, presenting tremendous challenges to the environment, to the world economy, and to individual businesses. It is also one of the most difficult risks to mitigate. This is a complex global issue at the intersection of science, risk, and public policy.

Ceres which directs the Investor Network on Climate Risk, a group of 78 institutional investors from the U.S., Europe, and Canada who collectively manage over $7 trillion in assets. In an annual report has noted that, despite the financial crisis, a growing number of political, financial and business leaders are calling for immediate action to drastically reduce global warming pollution. Climate change related catastrophic losses in 2008 to the economy were the third highest ever , exceeding $200 billion globally in 2008, including $40 billion in losses from Hurricanes Ike and Gustav in the U.S. alone, according to global insurer Munich Re. Climate trends are creating risks on both sides of the insurance house—underwriting and investment. But these trends also create vast opportunities, from product innovation to investment alpha, for insurers to be part of the global warming solution. For the first time, fighting climate change is seen not just as a long-term imperative but also as a short-term stimulus for a struggling economy. Property insurance companies are driving the majority of the activity (home owner, commercial, and auto)For the first time, two insurers, Zurich and Liberty Mutual, have introduced directors and officers’ coverage specifically tailored to address liability risks associated with climate change.

◆ Almost all of the climate-related innovations in liability insurance for directors and officers, political risk, professional liability, and environmental liability have appeared in the past year. Both Zurich and Liberty Mutual launched products specifically designed to cover boards of directors in the event of climate change litigation, a significant development given pending lawsuits that could allocate significant costs to major emitters of greenhouse gases.

The business risks from climate change include:
• the strong threat of increasingly volatile weather conditions,
• rising sea levels, and new health impacts;
• resulting impacts on insurance markets, business resources,
• personnel, and corporate preparedness;
• increasing legal and regulatory pressures; and
• mounting public and shareholder activism.

Therefore Climate change—and how to respond to it—is not “yet another” issue for insurers. It is, rather, bound up in the very fabric of the industry and its business environment, namely:
◆ Loss-model accuracy
Regulation
◆ Balance sheet strength, risk-based capital, and solvency
◆ Competitiveness
Emerging markets
◆ Reputation & trust
◆ Customer retention
◆Corporate governance, investor relations, and disclosure

Litigation Risks from climate change include:
With a growing perception among the public, government officials, and businesses that climate change causes damage, the likelihood increases that lawsuits may be filed against those believed to contribute to the buildup of GHGs. Companies could find themselves embroiled in courtroom battles on a number of fronts.

Reputation Risks:
Health risks: Climate change also poses a threat through potential impacts on the spread of diseases. A recent study by Harvard Medical School, for example, concluded that rising temperatures and extreme weather affect the breeding and spread of disease vectors such as mosquitoes that carry malaria and ticks that carry Lyme disease. Rising temperatures may also increase the growth of ragweed pollen and cause a rise in the incidence of asthma, according to the 2005 study. Air pollution could also worsen in some areas, with a related rise in respiratory illnesses. The economic consequences in terms of cost to company and government health plans could be significant.
Although most consumers do not currently consider climate change to be a front-burner issue, it is likely to become a mainstream consumer concern by 2010, according to Brand Value at Risk From Climate Change, a study conducted by the Carbon Trust with Lippincott Mercer, a Marsh sister company. In part, climate change will gain visibility among consumers in the coming years through the impacts of media reports on severe weather, increased regulations, political debate, and an increase in products marketed as climate-friendly. A number of companies from a range of industries are already promoting themselves as environmentally friendly and, specifically, climate change-friendly.

Regulatory Risk from Climate change:
As government agencies and world bodies put regulations in place limiting emissions, enforcement action can be expected against companies found not to be in compliance.
Such companies may then face significant costs from fines or from fighting against the regulations—or against allegations of having violated them—in court.

Risk from Shareholders:
Lawsuits from shareholders could centre on whether a company suffered financially due to a lack of planning for climate risks by directors. For example, it’s conceivable that a power company may choose to do nothing to limit emissions, and then the federal government could pass legislation requiring CO2 limits. Companies that had not prepared for the possibility could find themselves at a disadvantage to competitors that did prepare.

Competitiveness Risks:
A company that manages the above risks—physical, regulatory, shareholder, litigation, and reputation—more effectively than others in its industry may gain a competitive advantage. For example, if a manufacturing firm undertakes a comprehensive effort to reduce its energy consumption, it may significantly reduce energy costs, discover ways to streamline its processes, exceed shareholder expectations, and project a positive environmental image. Many companies are now aggressively developing new products as part of environmentally friendly strategies.

Corporate need to;
• understand and assess their exposures to natural hazards;
• analyze infrastructure damage;
• identify the need for upgrades to buildings and business practices; and
• obtain advice on risk-reduction measures.

Note: The article has been condensed from various prestigious publications & condensed for easy reading.

 

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