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With Nicholas Stern's report stating that climate change could shrink the global economy by a phenomenal 20%, reversing the impact of climate change is finally reaching board level. Staff across all types of organisation will soon be expected to make carbon-friendly decisions from implementing the right technologies through to purchasing from 'green' suppliers. With each tonne of CO2 emitted causing damage worth at least $85, climate change and the economy can no longer be viewed in isolation. It is a financial burden that everyone will have to bear.

The environment, and in particular climate change, can no longer be viewed as an issue for tree-hugging environmentalists and Governments to sort out. Faced with the reality that climate change is as much an economic threat as it is an environmental one, reversing its impact is finally reaching board level and becoming integral to corporate decision-making. As this 'environmental thinking' becomes an increasing priority for businesses, staff across all types of organisation will feel the impact and will be expected to make carbon-friendly decisions in all aspects of their working life.

Climate change and the economy

Former World Bank chief economist, Sir Nicholas Stern, is to thank for raising awareness of the relationship between the economy and climate change, causing worldwide leaders to finally sit up and take notice of the impact our changing environment is having on the bottom line1.

One of the most alarming findings from Stern's report is that climate change could shrink the global economy by a phenomenal 20%. If temperatures rise 5°C above pre-industrial levels as is expected, global food production will be seriously affected, flooding will affect millions with some being permanently displaced, and up to 40% of species could face extinction. However, by taking action now to reverse the effects, it would cost just 1% of the global gross domestic product, which is a huge incentive for businesses to act immediately. As well as avoiding the negative economic affects of climate change, Stern asserts that by shifting the world onto a lowcarbon path, the global economy would eventually increase by an incredible $2.5 trillion every year. In addition, by 2050, markets for low-carbon technologies could be worth at least $500 billion.

Some businesses are already seeing a financial...

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