While the planet continues to warm, Australian politicians are using the science around climate change as a political football. The question has to be asked, is this political “static” causing the issue to slip off the agenda in the world of C Level decision-makers?
The Opposition leader in Australia, for example, says we simply have to get used to a world with an average mean temperature three degrees hotter, despite the impact this will have on water resources and the land we rely on for food production. Does this political shelter give the C-suite the excuse it needs to throw sustainability overboard? Is the issue of climate change even on the corporate agenda anymore?
PWC’s 13th Annual Global CEO survey released in January 2010 revealed some interesting feedback from major decision-makers of companies in every region.
Their key concerns (those rated ‘somewhat concerned’ to ‘extremely concerned’) regarding sustainability, were:
- Climate Change. In 2009, 26% identified it as a concern. In 2010, that percentage rose to 37%. Far from tossed overboard, the issue is growing in importance and ranks even higher than terrorism.
- Energy Costs. In 2009, 50% registered concern, and in 2010 that number rose to 54%. Clearly a high level of concern. (To help companies address this issue, OgilvyEarth has created internal programs that reduce operational energy use by 8- 12% over a twelve-month period, with the added benefit of high levels of employee engagement and improved employer reputation. It’s a win-win proposition for brand character and cost-saving, so why would any company shun the opportunity?) The same report showed that 75% of these CEOs saw employee engagement as a key issue after the GFC. Strong internal programming is an easy win.
PWC’s report reinforces our own OgilvyEarth research, which finds that C-level executives link sustainability strongly to corporate reputation. The PWC report found that 64% of respondents believe “Participation in industry initiatives to improve the sector’s reputation” is important; 50% said so of “Expansion of CSR programs,” and 31% called out the importance of “Engagement with NGO’s that affect reputation.”
But back to the specific issue of climate change: The PWC report revealed that 60% of CEOs are making preparations for the impacts of climate change. An average of 48% of CEO’s in developed nations saw that climate change would lead to significant new products and services, and of the same group, 61% reported that action towards these ends would increase their reputation.
So the issue of sustainability is not only still alive and well and firmly on the agenda, it is also going to yield significant opportunities for those business leaders who have the vision to invest in a solution.
Opportunity-seizer par excellence: Sam Palmisano, CEO, IBM
