Credit crunch is no reason to abandon sustainability drive

Published on Tuesday 12 August 2008 22:08

AS EDINBURGH'S festival season gets into full swing and its organisers and participants take the first steps to cut the environmental impact of this world-leading cultural gathering, it is encouraging to see the arts community making significant steps to enhance its green credentials.

Participants in both the Edinburgh International Festival and the Edinburgh International Book Festival will this year see many participants opt to travel to the city by train rather than by air. In addition, low-energy light bulbs are being used in venues and recycling bins made available for disposal of flyers.

This is especially promising to witness as, within our increasingly troubled economic climate, a disappointing, yet understandable, groundswell of nervousness has risen among UK businesses towards their collective responsibility to tackle climate change.

Some of those who, pre-credit crunch, may have considered reducing their own carbon footprint are now looking to distance themselves from adopting more environmentally conscious working practices out of fear of the short-term financial burden that this may place on their business.

Recent well-documented government initiatives have been announced in an attempt to place legal requirements on businesses to contribute to environmental change. These include the high-profile energy performance certificates, which measure the energy efficiency and carbon emissions of buildings and the carbon reduction commitment (CRC) – a mandatory emissions trading scheme being introduced in April 2010 which covers large non-energy-intensive businesses and public sector organisations.

The Scottish Government is also introducing the Climate Change Bill, which will also tackle climate change and reduce the carbon footprint of companies and organisations to address their environmental policies.

Not only is it now a legal requirement for companies to play their part, but there is also strong evidence to show that the long-term financial gains are substantial. Analysis demonstrates the CRC scheme will provide net benefits to participants, with energy efficiency benefits outweighing costs.

In addition, recent reports from the US suggest that new and refurbished buildings with high sustainability standards are weathering the economic difficulties better than standard buildings and that US banks prefer to lend to organisations with transparent, coherent sustainability strategies and an energy-efficient portfolio.

Reducing carbon emissions can also mean profitability, and ultimately competitive advantage, reducing exposure to energy prices or waste disposal costs, and when you reduce that, you reduce the volatility of your profits, resulting in a less risky business and attracting investment.

Improving energy efficiency, water saving and systems for recycling waste – weighed against the period of payback on investment required – is cost-effective and enhances sustainability credentials, making such a business more attractive to customers and investors.

Capgemini has introduced a sustainability board comprising the chief executives of our five UK businesses and focusing on our impact on the environment as well as the communities we operate within and our employees. (Bringing together both the environment and community streams of our sustainability programme, on 15 August, we will host Scotland's first carbon neutral "green carpet" ball.)

A two-tier market is developing, with those who embrace the sustainability and the opportunities it will create standing to gain in the long-term and ensure their business remains highly competitive and respected. In future, such businesses may also be taxed differently.

Far from being a time to hold back, there has never been a more pivotal moment for businesses to address climate change.