Forum for the Future engages with decision-makers in the business community to drive forward the sustainability agenda. We believe that climate change represents the biggest sustainability challenge of our time and, as such, we expect our business partners to demonstrate leadership on this issue.

As consensus emerges around the need for a reduction in greenhouse gas emissions of at least 80% by 2050, with rapid progress towards this goal in the next 10 years, it is clear that the current response to climate change – whether corporate or governmental – is simply not commensurate to the scale of the problem.

We recognise that the contribution of different companies to climate change varies significantly – and that different companies face greatly divergent risks and opportunities as a result of climate change. However, we believe that all companies, regardless of sector, should be engaged on this critical issue.

The negative economic consequences of inaction will, over time, dwarf those of action now, and business will suffer alongside the rest of society. Conversely, those companies that offer products and services with a lower climate impact than their competitors will increasingly realise advantage in the marketplace.

We consider the following to be essential components of leadership on climate change – and expect our partners to incorporate them into a robust carbon management strategy:

• A full understanding of the risks and opportunities posed by climate change
  All companies face climate risk to some extent. While the specific risks and opportunities differ from sector to sector and company to company, they warrant serious debate at the board level of every corporation.
• An awareness of the climate impacts arising throughout your company’s value chain
  Companies should have a clear understanding of their entire climate footprint (including impacts in their supply chain, and associated with the use of their products) and focus their efforts on those areas where the impact is greatest.
• The provision of products and/or services that are best-in-class in terms of climate impact
  Companies should ensure that their commitment to climate leadership extends to the products and services they offer. As well as ensuring that these are best-in-class in terms of full life-cycle climate impact, companies should also look to develop 'zero-carbon' products and services and, where appropriate, provide solutions to climate change.
• An understanding of the contribution that your company – and its industry sector – will make in achieving local, national and global greenhouse gas reduction/stabilisation targets
  While many companies have established greenhouse gas reduction strategies and targets, few have aligned these with the concept of environmental limits and wider societal objectives regarding greenhouse gas reduction and/or stabilisation. These objectives have been expressed in different ways: limiting warming to 2 degrees centigrade; stabilising carbon dioxide concentrations at 450-550ppm; reducing greenhouse gas emissions by 80-90% from 1990 levels; or restricting individuals to one tonne (or less) of carbon per year. In discussing their individual climate targets and strategies, companies should reference wider targets such as these, and describe the role that they will play in achieving them.
• Progressive engagement in the political debate around climate policy
  At a minimum, companies should ensure that their lobbying activities are consistent with their stated position on climate.  Beyond that, companies need to be more vocal about the risk climate change poses to all economic activity, and to demand an appropriate governmental response.

Contact: Iain Watt