FOR BUSINESS
Effective solutions to Climate Change and Peak Oil – Actions by Business
To be effective, solutions to climate change and peak oil need to:
a) quickly reduce further growth in Australia’s greenhouse gas emissions before 2015;
b) progressively reduce Australia’s consumptions of oil and gas; and
c) foster and facilitate a ‘new’ lower consumption, lower emission economy.
Climate change
Background
If we are to prevent dangerous climate change, we must avoid reaching a tipping point in average global temperature (see http://pubs.giss.nasa.gov/docs/2007/2007_Hansen_etal_1.pdf).
Climate modelling by the IPCC suggests that atmospheric levels of greenhouse gases need to be stabilised below 450 ppm CO2-e. If current trends continue, this threshold could be reached by 2015.
While a longer-term reduction in greenhouse gas emissions is needed, there is a vital need in the short term to rapidly reduce the rate of increase in greenhouse gas emissions (currently about 2ppm CO2-e per year). Business has an important role to play in stabilising global emissions below 450 ppm CO2-e.
Effective solutions for business
#1 Audit the carbon footprint of the business
The first step in reducing the climate change impact from individual businesses is to find out what that impact is. This will provide the impetus for action. The US carpet manufacturer Interface is an exemplar for this approach (see http://www.smh.com.au/news/environment/how-green-is-my-carpet/2007/07/06/1183351454778.html).
#2 Move from a 'material flow' business model to a 'service flow' model
Again, Interface is showing the way. Rather than selling carpets and other floor coverings, the company is moving towards renting out floor covering 'services'. This approach provides a powerful incentive for businesses to use a minimum of resources, and to produce durable products that are easier to maintain, repair, reuse and recycle (see The Interface Model at http://www.interfacesustainability.com).
#3 Vigorously pursue energy efficiency
Energy efficiency has proved to be a cost-effective strategy for reducing the rate of increase in greenhouse emissions. Since the mid-1970s, California has shown the way forward by implementing energy-efficiency measures, including building code and appliance standards. Over that period, California has maintained a relatively constant per capita energy consumption while the national U.S. per capita consumption doubled.
The carbon footprint audit (see #1 above) will assist in identifying cost-saving energy efficiency gains. These dollar savings can then be invested in further energy efficiency measures. The introduction of an Emissions Trading System in Australia will provide an impetus for business to pursue energy efficiency measures (see www.garnautreview.org.au).
#4 Buy a proportion of energy from renewable sources (solar, wind etc)
Business could use its 'buying power' to support the growth of renewable energy. As an example, seven of Interface's facilities are 100% powered by electricity from wind, biomass and/or solar sources. Overall, 16% of Interface's global energy consumption is from renewal sources (see http://www.interfacesustainability.com/pdf/RENEWABLEENERGYFrontPage053006.pdf
#5 Support progressive business groups lobbying for a climate-friendly regulatory environment for business
Join with existing progressive business groups such as the Australian Business Round Table on Climate Change (www.businessroundtable.com.au) in supporting the move to a low greenhouse gas emissions future.
Peak Oil
Background
While an effective response to peak oil requires government policy to guide investment decisions, businesses can take steps to reduce their exposure to the risks associated with peak oil. Most directly, this will involve reducing the business's dependence on petroleum.
Effective solutions for business
#1 Move to more fuel-efficient vehicles
Businesses that have vehicle fleets should rapidly switch to more fuel-efficient vehicles.
#2 Reduce business air travel
Wherever feasible, use video conferencing and other measures to reduce business air travel.
#3 Locate where employees can get to work by convenient public transport or by walking/cycling
Businesses - especially office-based businesses - should locate close to high quality public transport. As a transition measure, provide a shuttle bus to the nearest high quality public transport service. Salary packages should include an attractive public transport option.
#4 Chose local suppliers
When purchasing products and services, favour local suppliers to reduce the embedded ‘oil cost’ in these products and services.
