Monday, November 06, 2006

Will corporations create solutions?

With the ongoing climate change debate many people point to market based solutions. Some examples are carbon trading systems and that industries will adapt as the costs of climate change can be quantified or start impacting the bottom line.

Unfortunately, large corporations may not be as ready, or able to prepare, for climate change. A piece in the Guardian in the UK indicates that 4 of the top 10 global corporations "have published strategies for reducing their carbon footprint."

Market forces may be able to provide some solutions. Corporations are profit-oriented by nature and will only adapt if money is at stake or are regulated to do so. Carbon trading systems may only facilitate buying credits rather than implementing real changes. Environmental issues need to become a part of the decision making and financial reporting for corporations for meaningful changes to take place. If the costs can be quantified and internalized to the corporate culture then we can expect results. Until that time those of us who are concerned need to get the message out and vote with our wallets.

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