Responding to climate change in the corporate context

The United Nations Framework Convention on Climate Change (UNFCCC) defines climate change as: a change of climate which is attributed directly or indirectly to human activity that alters the composition of the global atmosphere and which is in addition to natural climate variability observed over comparable time periods (www.unfccc.int).

By now, we have all probably decided where we stand on the climate change issue. Sceptics may deny it is even taking place; others may see it as an inevitability that is beyond our control; we may feel passive toward it and trust that someone, somewhere, will do something to address it; or we may recognise that we can try and adjust the causes and mitigate the effects thereof.

For the latter grouping, a big question exists: “What are we supposed to be doing as corporates, managers within these corporates, and individuals?”

In 2009, researchers Dr Hennie Stoffberg (Department of Environmental Sciences, Unisa) and Dr Paul Prinsloo (Directorate: Curriculum and Learning Development, Unisa) did corporate South Africa the great service of packaging a publication called, Climate Change, A Guide
for Corporates.

It stems from the premise that climate change presents a massive strategic threat to businesses, and that the time is nigh for demystification of the corporate response to climate change and instilling a sense that everyone can do something to address it.

Our government regards climate change as one of the greatest threats to sustainable development. Governance recommendations such as the King III Report place sustainability firmly on the agenda; and other initiatives call for particularly listed companies to disclose carbon emissions voluntarily and make public the strategies put in place to reduce these emissions.

The draft climate change response policy released by the government for public comment in 2010 is expected to be completed by mid-2011.

While South Africa is party to the Kyoto Protocol, as a developing country it is not obliged to reduce its carbon emissions.

Indeed, “Tighter regulations in energy efficiency, building standards, vehicle emission standards, waste regulations and greenhouse gas reporting are all therefore imminent.” This is according to an article published in the PLC Cross-border Environment Handbook 2009/10, in which attorneys from Edward Nathan Sonnenbergs respond to direct questions about where South Africa currently stands in terms of climate change strategy and legislation. This has meant the matter is no longer buried in the “corporate social responsibility” drawer, but is a matter of governance, strategy and policy in responsible organisations.

This brings us to the role that the project and programme manager can play.

Bearing in mind that the industries typically associated with carbon emissions (petrochemical companies, power generators, mining houses, etc.), it is almost certain that project and programme managers in these and other environments will be called on to deliver according to their corporate policy in terms of climate change where such policy exists, or practise as a responsible citizen where no such policy exists.

In the third section of their book, Stoffberg and Prinsloo provide a corporate climate change response checklist and guide for how a corporate’s various management levels and stakeholders can use it.

Below we have extracted the list items related to operational management strategy – the level at which a typical project or programme manager would function:

Policies

• The company issues a clear, proactive policy about the company’s climate change position and response plan.
• The company discloses the company’s greenhouse gas control strategy.
• The company discloses corporate climate change adaptation strategies.

Management

• The company has a person responsible for climate change in top management.
• The company has a person responsible for climate change in middle management.

Operations

• The company integrates climate policy into strategic business planning.
• The company develops staffing structure for management of climate change operations throughout business units.
• The company creates a multi-departmental steering committee to co-ordinate and communicate climate change, and clean energy strategy to the board of directors and chief executive officer.

Staff training and performance

• The company staff receives training and education, addressing climate change issues.
• The company staff performance is measured against climate change and carbon performance.

Research and development

• The company engages with climate-related research and development (R&D).
• The company publishes research and analysis of climate related issues for shareholders and/or clients.
• The company actively pursues climate change adaptation R&D.

Targets and supply chain

• The company has objectives, targets or strategies to manage climate change risks (physical, regulatory, reputational, litigation).
• The company has objectives, targets or strategies to manage climate change opportunities.
• The company sets absolute reduction targets for operations and products.
• The company describes a supply chain carbon management strategy.
• The company has objectives, targets or strategies to manage carbon risks for its supply chain.
• The company has objectives, targets or strategies to manage carbon opportunities for its supply chain.
• The company discloses supply chain climate change adaptation strategy and associated targets. ☑

For a copy of the book, “Climate Change, A Guide for Corporates”, contact Unisa Press (www.unisa.ac.za/press)

Taryn van Olden