In the UK news today was a warning from the Carbon Trust and McKinsey & Co that companies that fail to tackle climate change could lower the value of their businesses.
The study found that the deep emissions reductions necessary to tackle climate change, meet the Kyoto Protocol and put us on a path to a low carbon economy, will create significant business opportunities and risks. Companies’ futures will be highly dependent on how well prepared they are for the move, which will create large upsides and downsides for business.
Well positioned and proactive, forward thinking businesses could increase company value by up to 80%. Conversely, poorly positioned and laggard companies run the greatest risk of destroying value. The groundbreaking research found that as much as 65% of company value was at risk in some sectors.
The research covered six sectors of the economy including car manufacturing, brewing and consumer electronics valued at $7 trillion. Of these sectors, automotive firms stood to gain the most by adopting greener strategies by capitalising on the hybrid and electric car market, but also risked the greatest loss by failing to take on board these changes.
For more information, see the press release on The Carbon Trust website.