Climate change: a corporate response 31 March 2009 IEMA, Bury St Edmunds Andrew Kluth

2 Who I’ve worked for Hong Kong Government –Solid and chemical waste management –Territorial development –Nuclear safety negotiations Jarvis plc –First environment strategy –DJSI Global Index Royal Mail Group –Carbon management –First sustainability strategy Corporate Edge/ Likemind –Virgin Media, EDF Energy, Johnson Matthey, Alliance Boots Halcrow Group –Integrated sustainability strategy

3 Apollo 17, 7/12/1972 The Blue Marble

4 A resource-constrained world? USA European Union China Malawi

5 What we use the resources for Source:

6 Where we use the energy source: Energy Information Administration: table 2.1a

7 What we use our energy for Energy consumption in the US by sector Sector NameDescription%Major uses Industrial: 33% of total Facilities and equipment used for producing and processing goods 22chemical production 16petroleum refining 14metal smelting/refining Transportation: 28% of total Vehicles which transport people/goods on ground, air or water61gasoline fuel 21diesel fuel 12aviation Residential: 21% of total Living quarters for private households32space heating 13water heating 12lighting 11air conditioning 8refrigeration 5electronics 5wet-clean (mostly clothes dryers) Commercial: 18% of total Service-providing facilities and equipment (businesses, government, other institutions) 25lighting 13heating 11cooling 6refrigeration 6water heating 6ventilation 6electronics source: US Dept of Energy, various publications

8 The people problem “Global ecosystems face collapse” “Planet enters ecological debt” “Climate set for sudden shifts” “Billions face climate change risk” “Carbon emissions show sharp rise” “Arctic summers ice free by 2013” The rise and rise of the Keeling Curve

9 Whose problem is it? Ownership “A child born in a wealthy country is likely to consume, waste, and pollute more in his lifetime than 50 children born in developing nations.” (Archbishop George Carey) Small changes, big impacts 80% emissions reduction – not enough?

10 Consequences of current world trajectory Key UncertaintiesPotential Consequences Whether an energy transition away from oil and gas—supported by improved energy storage, biofuels, and clean coal—is completed during the 2025 time frame. With high oil and gas prices, major exporters such as Russia and Iran will substantially augment their levels of national power, with Russia’s GDP potentially approaching that of the UK and France. A sustained plunge in prices, perhaps underpinned by a fundamental switch to new energy sources, could trigger a long-term decline for producers as global and regional players. How quickly climate change occurs and the locations where its impact is most pronounced. Climate change is likely to exacerbate resource scarcities, particularly water scarcities. Source: US National Intelligence Council, November 2008; Global Trends 2025: A Transformed World Relative CertaintiesLikely Impact Continued economic growth—coupled with 1.2 billion more people by 2025 — will put pressure on energy, food, and water resources. The pace of technological innovation will be key to outcomes during this period. All current technologies are inadequate for replacing traditional energy architecture on the scale needed.

11 Stakeholders Consultant Clients Communities Suppliers Professional bodies Employees Regulators Current UKRegions ProspectiveIndividual Corporate Geographical Interest Partners GlobalNationalLocal EmergingAware Competitors Aware and active Aware and PR Key relationship Other relationship

12 Definition Stakeholder engagement Issues Objectives Performance Communication Governance People Leadership Clients and markets

13 Clarity Do the job well Tell people about it Engagement –internal –external Predictability –Reporting Performance Human stories

14 What can I/you do? Home –less water –less energy –less heat –less waste Travel –more efficiently – less fuel –less often –less far Lifestyles –buy less – buy better –use longer – use again –campaign for sustainability Planning –greater efficiency –better urban planning Energy –more renewables microgeneration large scale wind & solar –what about nuclear? Natural resources –better protection –reforestation Agriculture –less destructive practices ideas adapted from wwf’s oneplanetfuture and Pearce, F. The Last Generation (2006), Eden Project Books

15 Climate change: a systems issue Ten Guiding Principles Zero Carbon Zero Waste Sustainable Transport Local and Sustainable Materials Local and Sustainable Food Sustainable Water Natural Habitats and Wildlife Culture and Heritage Equity and fair Trade Health and Happiness source:

16 The opportunity to lead Sustainability does pay “Most executives (57%) say that the benefits of pursuing sustainable practices outweigh the costs”…involves “a shift away from defensive behaviour towards more active exploration of the opportunities sustainability can present” Execution is problematic “On a range of environmental and social outcomes less than 10% of respondents rated their efforts as outstanding on each, barring public relations” Source: Economist Intelligence Unit (2008) Doing good: Business and the sustainability challenge, p.5

17 Are we wasting our time? Some thoughts from Gandhi Whatever you do will be insignificant, but it is very important that you do it You must be the change you want to see in the world

Thank you