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A McKinsey global survey conducted this year found that 60 percent of global executives view climate change as an important consideration in their companies’ overall strategy. With over 2,000 respondents globally, 27 percent of who were CEOs or other C level executives the survey looked to identify how companies view climate change and the associated business risks and opportunities. |
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70 percent of respondents see climate change as important when managing corporate reputation and brands, with over 50 percent believing it important to account for climate change in the areas of product development, investment planning and purchasing and supply management. If managed well, 61 percent of respondents say they believe climate change presents more opportunities than risks with potential positive effects on profits.
Although many respondents to the survey see climate change as an important consideration in their business operations, 44 percent of CEOs globally said that it was not a significant item on their agenda. Survey results suggest that the widespread talk around climate change isn’t translating into action, “more than one-third of global executives say their companies seldom or never factor climate change into their companies’ overall strategy.” (How companies think about climate change: A McKinsey Global Survey, 2008).
According to the survey 80 percent of global executives expect the country where they’re located to introduce some sort of climate change regulation within the next five years. With the introduction of emissions trading in Australia in 2010, it is becoming increasingly important for all companies to place climate change high on their priority list and turn their talk into action. Preparing for regulatory changes is not the only reason for acting early on climate change, survey respondents who have taken climate change into consideration also cited corporate reputation, media attention and customer preferences as the major influencing factors.
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