Wednesday, November 25, 2009

Global management consultancy Arthur D. Little has produced a new report, 'Ensuring survival: Business models in a low-carbon world'.

Beginning with the assertion that "carbon is an unstoppable steamroller," the report identifies the drivers that will push a steady increase in the price of carbon, and urges businesses across all sectors to consider the cost of carbon when planning for long-term growth.

"Whether in emerging or developed markets, companies with innovative solutions to thrive in a low-carbon economy will have a competitive edge.  Conversely, companies that do not take this on board will lose their competitiveness, as the cost of carbon drives up operating and raw material costs, and leads to supply-chain inefficiency." reflects Richard Clarke, Director of Arthur D. Little's Global Sustainability Practice.

The report recommends that CEOs rethink what corporate sustainability means to their future business models. "The narrow view of a sustainable business - one that simply doesn't damage the environment - has been losing currency for years," concludes Peter Hughes, report co-author and a Director of Arthur D. Little's Global Energy Practice.  "In a low-carbon world, a sustainable business is one that keeps growing despite increasingly intertwined threats over natural resources, shifting centres of political power, and long-term societal changes.  No business can reasonably put off considering these material implications any longer."