170 companies call on world leaders to tackle climate change

On 30th November 2007, the business leaders of 170 global companies published a communiqué to world leaders calling for a comprehensive, legally binding United Nations framework to tackle climate change. The initiative represented an unprecedented coming together of the international business community and included some of the biggest companies and brands from around the world, including the United States, Europe, Australia and China.

The initiative was led by The Prince of Wales’s UK and EU Corporate Leaders Groups on Climate Change, which are developed and run by the University of Cambridge Programme for Industry. The Communiqué was intended to have a significant impact on the UN climate negotiations that began on December 3rd 2007 in Bali, Indonesia.

The Bali Communiqué called for:

• a comprehensive, legally binding United Nations framework to tackle climate change
• emission reduction targets to be guided primarily by science
• those countries that have already industrialised to make the greatest effort
• world leaders to seize the window of opportunity and agree a work plan of negotiations to ensure an agreement can come into force post 2012 (when the existing Kyoto Protocol expires)

The Communiqué was printed as a two-page advert in the Financial Times, and received extensive coverage in the international media, across TV news, radio, print media and on the internet.

The Prince of Wales said he hoped the communiqué ''will strengthen the resolve of those gathered in Bali to make the tough decisions the world so urgently needs''.

James Smith, Chairman of Shell UK said:  "The message from the international business community couldn't be clearer. A comprehensive, legally-binding United Nations agreement to tackle climate change will provide business with the certainty it needs to scale up global investment in low carbon technologies. The cost of inaction far out weighs the cost of taking action now. It is crucial that, at the Bali conference, countries agree a work plan of comprehensive negotiations to ensure a robust policy framework is in place, to guide us forward over the coming decades."

Alain Grisay, CEO of F&C Asset Management said:  “Business and investors can only play their part in tackling climate change if governments take decisive action to make this possible. This problem will not get solved through market forces alone in the time that we have left to act, because climate change presents a textbook example of market failure. This means that voluntary targets won’t do: business needs a level playing field in order to take on the financial risks that adequate action on climate change requires”.

Tony Juniper, Executive Director of Friends of the Earth, welcomed the initiative:  “The shift to a low carbon economy is not only an environmental imperative but also an unprecedented economic and social opportunity. Scaling up clean energy systems and using energy more efficiently could not only slash emissions, but help to improve the quality of life for billions of people and create millions of jobs. Time is now short, however, and if we are to have a good chance of cutting emissions by a sufficient amount we need to act right away, and that is why we need a strong outcome from the Bali talks, and that is why it is so important that so many companies have signalled their support for governments to negotiate a deal that is up to the task at hand”.

"We are at a turning point in history," he said.

"The evidence we now have tells us that the era of cheap energy... and economic growth ... is coming to an end."

Chris Cole, Chief Executive of WSP said:  “The Bali Communiqué sets out very clearly the business and economic case for bold and urgent action to tackle climate change. It calls for a legally-binding framework which will provide companies with the certainty they need to scale up investment in low-carbon technologies.

“WSP is a global consultancy working across a variety of industries and from our own experience we believe the action proposed in the Bali Communiqué could pave the way for businesses to think very differently about climate change and their response to what is the biggest environmental challenge of our time. We are proud to be signatories.”

Carter S. Roberts, World Wildlife Fund President and CEO welcomed the support of WWF's business partners for this important initiative:
"Global warming is the greatest environmental threat facing the world today and inaction carries a price tag none of us can afford," Roberts said. "Changing the outcome requires us to change the way we produce and consume electricity and other goods. But the development of efficient technologies also creates new business opportunities. As demonstrated by the signatories to the Bali communiqué, leading companies are making climate change a top priority. Now is the time for world leaders to act. WWF Climate Savers companies are an elite group that are stepping up to the plate and are part of the solution."

Mark Parker, Nike Inc. President and CEO said:  "Tackling climate change is a catalyst for growth and innovation in our company," "These are complex issues, which is why international agreement and action is imperative to creating positive change. We're pleased to be part of a global group of companies who recognize the urgency and importance of creating a low carbon economy."

Neville Isdell, Coca-Cola Company Chairman and CEO said:   "The time to act on climate change is now, for all of us: governments, companies, citizens and all of society,"

"The challenge of climate protection is bigger than any one person, company, NGO or country. What's required is a common and interlocking commitment, incorporating all the elements of society, within a global policy framework. We trust that world leaders will seize the opportunity to build on this framework next month in Bali."

Richard Barrington, Head of Sustainability for Sun Microsystems, said:  "You've got businesses around the world saying, 'Give us certainty so we can do what's right for our investors, society at large and the broader environment,'" "If you look at the risks associated with climate change, they're just as much business risks as they are human risks."

John Chiang, State Controller of California and a trustee of the influential California Public Employees' Retirement System and California State Teachers' Retirement System said:  "Businesses are very, very concerned. It (climate change) has huge geopolitical consequences. All of that has implications to the financial markets."

Jack Ehnes, CalSTRS Chief Executive Officer said:  "It's not an issue of tree-hugging activists. This is a hard-core business issue”. Companies that fail to consider the impact of climate change on their operations, he said, "pose a risk and ultimately it's going to damage our portfolio."

For a full list of signatories and further information, click here to visit the Bali Communiqué website.

Posted 19th May 2008