Due to the recent rise in commodity process and tighter conditions in the global credit markets, businesses are being forced to make cutbacks which could, in the long run, reduce their carbon footprint.
Senator George Mitchell, former majority leader of the United States Senate said, "An economic downturn means there will be a reduction in emissions." Jeremy Darroch, chief executive of BSkyB, agreed in saying that cutting emissions made sense for businesses as commodity prices continue to rise.
At the Prince of Wales's May Day Business Summit on Climate Change earlier this month, 160 chief executives in London and a further 1,550 business leaders around the country gathered to discuss the impact of climate change on our economy.
Prince Charles, who is president of Business in the Community, the group that organised the event, appealed to delegates to ensure that the credit crunch does not overshadow efforts to work towards a more sustainable business practice. "I am acutely aware that many companies are facing uncertain times at present in the more challenging global economic environment, and I do understand that this is putting you under real pressure. And, of course, addressing these new circumstances must be a high priority.
"But at the risk of being a blinding nuisance, and because I don't think we any longer have the luxury of putting the threat of climate change to one side, I would beg that you don't let these circumstances divert you entirely from the challenge of tackling climate change, which Lord Stern has warned us carries grave implications for the world economy."
According to Lord Stern, author of the government report into the economics of climate change in 2006, global warming could have a similar effect on the world's economy to that of The Great Depression.
The growing increase in interest from customers has also pushed businesses into thinking about their environmental impact. Sir Mike Rake, chairman of BT, said, "Customers more and more expect companies to be thinking about these issues. It's a selling point. The stars are aligned: there's a business case, there's a moral case, the young people want it, the punters want it."
There is a danger however that a 'selling point' may not be the best reason to change practice, and it may in fact prove to be a simple case of 'greenwashing' from businesses noticing the selling opportunity. Customers must remain wary of businesses playing the green card all of a sudden.
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This post was written by Natasha Barnes on May 21, 2008