Alberta Acts
 
 

Climate Change and Business: The Problem and the Solution

There is now more and more proof that climate change is currently having — and will continue to have — serious detrimental impacts on the environment, economy and society. The business-as-usual model is no longer sufficient.

Climate change threatens to cause major upheavals in all areas of our society, either directly or through a domino effect of rising prices, higher transportation costs, declining returns on investment, and much more. No matter the company, climate change should be of major concern to everyone.

Locally and globally, businesses are taking a long look in the mirror. By critically examining what aspects of the business could be modified — whether this means greening the supply chain, building retrofits for energy efficiency (federal and provincial grants are available), encouraging telecommuting, and a number of other measures — business owners can manage climate change risks, save money, attract new employees and customers, and raise their profile in the community.

"Climate change presents a unique challenge for economics: it is the greatest and widest-ranging market failure ever seen."

Lord Nicholas Stern, The Stern Review on the Economics of Climate Change 

Business-As-Usual No More

New business opportunities for renewable energy have the potential to allow small businesses to attract new clients, enter new markets, and become more innovative and forward thinking.

Unlike government or not-for-profit organizations who might be slow to take up new ideas and ways of doing things, businesses can move quickly in response to changing situations. Businesses are often better positioned to adopt new practices and technologies, apply the latest knowledge and test new ideas. Companies, more than any other sector of society, are often making decisions without perfect knowledge, and then learning, adapting, and coming up with new ideas on the go.

"Rising to seize these opportunities is the imperative of the business community. As both an important part of the problem and the driving force behind the solution, business holds the decisive key to climate change - and now it is the time to use it," 

Risk, Responsibility and Opportunity: The CEO's Guide to Climate Change.

Green Jobs Potential

Solar installersSome estimates show that the renewable energy sector is growing by 45 per cent. "Green jobs" — generally defined as having an environmental or sustainability focus — are growing at more than twice the rate of traditional jobs in Canada. The Calgary Herald reports that green jobs have grown by 9.1 per cent over the last decade compared with the average of 3.7 per cent for all jobs. The skilled trades could stand to reap some of the biggest gains as new green initiatives in sustainable energy and construction get going in Canada and south of the border. In Canada and abroad, we are seeing how making long-term investments into environmental infrastructure will help to make our economy stronger and more resilient.

Resiliency is the idea of being able to weather the storms of a turbulent economy.

Researchers in the US have released a report showing that people involved in the green jobs sector are finding that demand continues to be high despite the recent recession. Finding ways to increase energy efficiency, develop alternative and renewable energy, and strengthen local food systems means having a lighter footprint on the planet, and not being as vulnerable to rising energy prices or other fluctuations in the economy. 

Alberta is especially well-positioned to take advantage of opportunities in green jobs. David Thompson, author of the report Green Jobs: It's Time to Build Alberta's Future, shows that 20,000 new green jobs could be created in Alberta this year. With more cooperation between government, industry, and environmental and labour groups that number could grow to 200,000 jobs.

"The days of the jobs vs. environment myth are numbered. Environmental problems are increasingly seen as challenges to be overcome, and as opportunities to create good jobs cleaning up the environment."

David Thompson, Green Jobs: It's Time to Build Alberta's Future

The Case for Small Business

The small business sector is a vital component of Alberta's economy. Three-quarters of all employment comes from firms with less than 10 employees, and small businesses produced one fifth of the provincial GDP.

Local businesses and business leaders have a crucial role to play in taking a proactive stance on climate change.

With the ability to make changes quickly, motivate employees, shift internal policies, and influence local communities, business leaders can be more innovative and agile in reacting to changes in the economy and society. While the large companies of the world are rolling out all kinds of large-scale sustainability plans, small local businesses are arguably much better positioned to act quickly. They know the local situation, are plugged in to key movers and shakers — and know ripe opportunities when they see them.

By embracing principles of sustainability and adopting a triple bottom line approach, small businesses not only make themselves more versatile and competitive in a changing economy, but also find ways to give back to the community and leave a lasting legacy. Following an established framework for sustainability planning such as The Natural Step can assist businesses to find the solutions that work for them.

Good Work

Corporate social responsibility. Corporate Citizenship. Responsible Business. Triple Bottom Line. What does this all mean? Quite simply, it means doing good business. Good for profits. Good for the environment. Good for society.

While specific definitions and applications of these terms vary, the concepts describe businesses that have gone beyond the single goal of making a profit to look at the impact a company has on nature and the environment, on human health, and on society as a whole.

Corporate Knights magazine takes the position that "a responsible corporate culture can foster a more livable world for all." This is linked to the idea of sustainable development: "development that meets the needs of the present without compromising the ability of future generations to meet their own needs."

Small Business Enterprises

Large Corporations

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Further research

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