PriceWaterhouseCoopers

Climate now top priority

Climate change is constantly in the news. Chris Maw, a partner in PricewaterhouseCoopers LLP’s Norwich office, considers the impact on businesses in the region.
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It’s difficult to avoid hearing about the implications of climate change in the newspapers and on television, but is it really impacting on business?

According to PricewaterhouseCoopers’ 11th annual Global CEO Survey, based on interviews with more than 1150 leading chief executive officers, climate change has become one of the major concerns for businesses across the world and increasingly in the UK. CEOs appear to take a responsible attitude to climate change and carbon management as a given. However, it would seem that most UK CEOs remain hesitant to translate words into actions that will cost money, without first being sure of the return.

Adnams’ new east coast distribution centre, dubbed ‘Britain’s greenest warehouse’ .

The current economic environment may only push this issue further down the list of their priorities. The reality however is that climate change is an increasingly worrying issue and its impacts appear to be accelerating.

Already we are seeing much stricter regulation, affecting more and more companies. It is also starting to affect consumer attitudes and behaviour. While climate change was once seen as a long-term issue, it is now a fundamental and immediate challenge for many companies.

Research has proven that a proactive approach to issues such as climate change is essential if companies are to retain market share, the respect of customers and attract and retain talented employees.
Young people, in particular, are much more aware of the environment and want to work for responsible employers, a crucial factor affecting recruitment and retention.

We already see a large number of companies taking their social and environmental responsibilities very seriously; however, this now extends beyond corporate responsibility reporti,ng and has now become a boardroom issue. Climate change is also driving changes in customer behaviour and creating innovation across the supply chain.

In our own region, there are a number of companies (too many to be mentioned in this article) that have realised the importance of tackling the issues raised by climate change.

Suffolk brewer Adnams’ central distribution centre outside Southwold is a fine example of sustainable design and is widely hailed as “Britain’s greenest warehouse”. The centre is the UK’s first large commercial buildings using lime hemp blocks, selected for their sustainability and insulating properties.

The material is also used as a climate modifier, so there is no requirement for cooling, minimal requirement for heating and reduced water usage with an integrated water harvesting system. The new lightweight Adnams beer bottle – a 34pc reduction in glass per bottle makes it the lightest bottle on the market and saves an estimated 415 tonnes of carbon dioxide a year (equivalent to taking 138 cars off the road each year).

Our clients include the University of East Anglia, home to the Tyndall Centre for Climate Change. The world class Tyndall Centre brings together a range of experts from science and business who together are working to develop sustainable responses to climate change through trans-disciplinary research and dialogue, nationally and internationally.

Car manufacturers may not seem like the “greenest” of businesses, but Lotus Cars has realised that, as it moves into a new automotive era, the technology of CO2 reduction is becoming integral to its car manufacturing and engineering businesses.

Lotus is a world leader in the integration of green technology into vehicles. Lotus is a global high-tech company, expanding rapidly and committed to driving forward technology for both Lotus Cars and its engineering clients, spearheading research into such areas as hybrids, electric vehicles and renewable fuels.
It is not just manufacturing and engineering companies that are considering their impact on the environment. Norwich-based stationery and office products distributor, office2office, has been recognised for its Globe and Tick ™ range of environmentally- sourced products.

Increasingly, our clients are considering how they can improve their business performance and create long-term share-holder value, while meeting the demands of adapting to the implications of climate change and social responsibility.

PricewaterhouseCoopers helps by developing sustainability strategy, performance management and reporting solutions. We assist our clients in the areas of corporate governance and business ethics, environmental health and safety management, social responsibility, strategy and economics, responsible supply-chain management and reporting and assurance of non-financial information.

Contact Chris Maw on 01603 883100 or chris.maw@uk.pwc.co

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